PUTRAJAYA, Jan 9 — Recovering commodity prices indicate that Malaysia’s economy may improve this year, Prime Minister Datuk Seri Najib Razak said today.

Speaking to civil servants at the monthly Prime Minister's Department assembly, Najib pointed that prices of crude oil, palm oil and rubber had all increased compared to 2016 prices.

"Looking at the global scenario and the big picture, 2016 was a very challenging year," he said.

"But there is hope now the situation will improve in 2017," he added.

He pointed that the price of crude oil was now US$54 per barrel, compared to US$44 in 2016.

"Palm oil prices have also improved, and the price of rubber is now up to three times higher than the prices last year," he said.

"Small rubber farmers have said that now they could earn up to RM100 per day in some places, and they no longer have to rely on the hope of the local lawmakers there for basic expenses," he added.

The World Bank in December said the Malaysian economy was expanding despite the general decline and uncertainties surrounding global markets.

Last week, Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah said Malaysia is doing well and projected that the economy will grow between 4.5 and 5 per cent this year.