KUALA LUMPUR, Dec 13 — AmBank Research expects a positive growth of  2.9 per cent year-on-year (y-o-y) in the fourth quarter 2021 and 3.5 per cent y-o-y for the full year as the economy reopens and high vaccination rate that allow for the economic sector to function properly.

It said coupled with pent-up demand, high commodity prices and robust exports, the economy will continue to grow healthily.

"Furthermore, the exemption of new vehicles’ SST (sales and services tax), which is extended until June 2022 under Budget 2022, will help buoy the automotive market after being heavily affected during the lockdown.

"This can be seen in the double-digit growth of its sales value and volume in the sale of motor vehicles,” AmBank Research said in a note today.

Nevertheless, caution remains on the possibility of the emergence of deadlier and more severe new Covid-19 variants, it said.

On house projection, the research house suggests that the country may see a monthly gross domestic product growth of 1.2 per cent for October.

For the month of October, Malaysia’s industrial production index reached its highest since May 2021 at 5.5 per cent y-o-y, above 2.5 per cent in October.

On a monthly basis, the same headline index grew 4.8 per cent, driven by the manufacturing index growth of 8.0 per cent y-o-y and electricity index of 4.1 per cent y-o-y, but being offset by the decline in mining of 3.5 per cent y-o-y.

As for the ringgit, it expects the local note to trade between support level of 4.1940 and 4.2000 while resistance is pinned at 4.2220 and 4.2300. — Bernama