KUALA LUMPUR, Feb 12 — Malaysia’s economy is expected to sustain at a slow pace of 4.6 per cent this year, same as projected for 2018, as the global environment turned more challenging amidst lingering trade protectionism and rising global interest rates.
In a research note today, RHB Research said the fourth quarter gross domestic product (GDP) growth of 2018 was expected to moderate to 4.2 per cent year-on-year (YoY), from 4.4 per cent recorded in the third quarter.
Meanwhile, it said Malaysia’s December Industrial Production Index (IPI) growth picked up pace to 3.4 per cent YoY, which was in line with the research firm’s estimation, but higher that Bloomberg’s consensus of 2.7 per cent.
“This comes as growth of manufacturing outpost in line with a pick-up in exports, while mining activities rebounded from a decline in the previous month,” it said.
However, RHB Research said that the pick-up towards the end-2018 was unable to prevent IPI from easing to its weakest annual pace in seven years at 3.1 per cent, on the back of easing external demand for manufacturing goods and supply disruptions in the mining sector. — Bernama