Malaysia's 4pct-5pct growth forecast now looks conservative, says economist
KUALA LUMPUR: The government's full-year growth forecast of between 4.0 and 5.0 per cent is now seen as conservative after the economy outperformed expectations in the first half of the year, an economist said.
Malaysia's full-year growth forecast of 4.0 to 5.0 percent is now considered conservative by an economist, after the country's economy outperformed expectations in the first half of the year. Dr Geoffrey Williams noted that Malaysia has demonstrated resilience and is not experiencing an economic downturn, despite the geopolitical crisis, largely due to government policies.
The government has prioritized consumer and business protection by maintaining low petrol and diesel prices, thereby allowing individuals and businesses to operate without significant concern over the economic impact of the crisis. Williams highlighted that technology-driven sectors, such as artificial intelligence, data centers, and semiconductors, have contributed to overall economic growth, as evidenced by the GDP figures for the first and second quarters.
For the remainder of the year, Williams expects the economy to maintain its momentum, potentially reaching or exceeding the upper end of the 4.0 to 5.0 percent forecast. The Finance Ministry's growth forecast of 4.0 to 5.0 percent is now viewed as conservative, with the possibility of achieving above 5.0 percent growth for the year.
Malaysia's economy grew by 5.7 percent in the first half of the year, fueled by robust domestic demand and strong performance across the services, manufacturing, and construction sectors. Williams stated that Malaysia is now in a much better position than expected based on economic analysis. He emphasized that there should not be a period of caution or slowdown, as very high economic growth is anticipated for both the second half of the year and the entire year.
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