KUALA LUMPUR, Dec 4 — Malaysia's economic growth is expected to moderate to 4.5 per cent next year from 4.8 per cent this year, with domestic demand providing some relief amid a more challenging outlook for exports, said the Institute of Chartered Accountants in England and Wales (ICAEW) today.

Economic Advisor and Oxford Economics Lead Asia Economist Sian Fenner said higher inflation, tightening of policy rates, financial stability considerations arising from higher interest rates in the United States (US) and internal development are also likely to moderate demand.

"In line with our simulation of the US-China tariffs, we expect economies with the closest ties to be the hardest hit in a trade war, whether through direct or indirect exports,” she added.

Fenner said this when presenting the ICAEW Economic Insight: South-east Asia for the Fourth Quarter of 2018 here today. — Bernama