KUALA LUMPUR, Feb 19 ― Malaysia’s gross domestic product (GDP) is projected to grow at 5.5 per cent this year from 4.7 per cent last year, driven by investments in the oil and gas and infrastructure sectors.

J.P. Morgan Head of Malaysia Research and Executive Director Equity Research Mak Hoy Kit said the Malaysian economy will continue to see encouraging trend in exports.

“Earnings growth among large capitalised companies in the local stock market are expected to be at 11 per cent this year.

“Given the tightening measures by the government, consumer-driven sectors such as telecommunications, property and banks will continue to see weaknesses,” he told a media briefing today.

Mak said the promoted economic corridors in Malaysia would continue to drive foreign investments.

“Foreign investments could be as strong as last year or it may even surpass last year’s level,” he said.

Mak, however, said risks would still remain due to the high foreign ownership in bonds market in Malaysia of which foreign ownership accounted for 43 per cent of the market.

“This may have some implications if there is a major shock in the external environment.

“However, we have enough of surplus in the domestic liquidity to weather any downturn,” he added. ― Bernama