KUALA LUMPUR, Nov 14 — Next year will present its share of challenges, but market players remain cautiously optimistic of the pace of economic growth in Malaysia, projecting gross domestic product (GDP) growth of 5.2-5.3 per cent.
Ram Ratings said proper policy and surveillance would curb any significantly adverse impact on Malaysia’s economic resilience.
“In 2015, GDP growth is expected to come up to a robust 5.3 per cent, moderately lower than the 5.8 per cent anticipated for this year, mainly premised on the continued resilience of domestic demand,” it said in a statement here today.
The ratings agency said private investment would sustain a strong momentum, and is projected to achieve 11.6 per cent growth next year, on the back of strong foreign direct investment and continued infrastructure development.
It anticipates private consumption to stay resilient, with a forecast growth of 5.8 per cent, despite the expected domestic headwinds from the rising cost of living next year, following the implementation of the Goods and Services Tax (GST) in April.
In a separate statement, UOB Global Economics and Markets Research estimated Malaysia’s fourth-quarter GDP growth to be at 5.2 per cent next year and 5.9 per cent for this year.
“The 5.9 per cent projection for this year is at the higher end of the government’s forecast range of 5.5 per cent to 6 per cent,” it said.
“Domestic demand, including private investment arising from the Economic Transformation Programme projects, is expected to continue driving the growth next year.”
The economy expanded by 5.6 per cent for the third quarter this year, from 5 per cent in the corresponding quarter last year, but lower than 6.5 per cent in the second quarter. — Bernama
