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KUALA LUMPUR, 6 March ― Malaysian Rating Corporation Bhd (MARC) has forecasted today that the country's economy will grow at 5.3 per cent this year.
At its 2018 Economic and Sectoral outlook briefing, MARC chief economist Nor Zahidi Alias said the growth will be supported by domestic demand and the external economy.
Growth will also be supported by ongoing major infrastructure projects such as MRT 2, LRT 3, Pan Borneo Highway and Menara Warisan.
Zahidi said the country's economic growth had grown beyond expectations last year at 5.9 per cent.
“The improving global oil market situation and rising oil prices bode well for the Malaysian economy in 2018. If oil prices are sustained at current levels or rise further government revenue growth as well as business sentiment should improve,” added Zahidi.
Zahidi also said that this should be positive for the corporate bond market.
Last year, total gross issuance of corporate bonds had surged by 45 per cent to RM122.9 billion, the highest in five years.
For 2018, the rating agency also expected corporate credit outlook to be stable with some moderate downside risks.
