KUALA LUMPUR, Aug 29 — MIDF Research expects Malaysia’s gross domestic product (GDP) in the third quarter of this year (Q3) to grow above 5.0 per cent, supported by business confidence that continues trending upwards and recovery in the manufacturing and commodity-based sector.
The research house said the second half of this year (2H19) stays on expansionary path.
On business expectations for the next six months, it said the overall business performance is expected to improve steadily.
“Overall business performance for 2H19 is expected to enjoy steady pick-up, especially for services, mining and manufacturing sectors,” it said in its economic brief today.
MIDF Research also reiterated its 2019 GDP growth forecast at 4.9 per cent based on current developments and indicators.
“This is due to the steady domestic demand amid lower overnight policy rate (OPR) effects, low inflationary pressure, stable job market and positive progression in the mining sector.
“In addition, goods and services tax (GST) refund payments will be fully paid to individuals and businesses by Q3, hence may lead to higher expenditure by private sector in 2H19.
“On external front, we foresee slight weakening trend due to trade war effects. Nevertheless, gradual pick-up in commodity prices would support the oversea sales of natural gas, as well as palm oil in 2019,” it added.
The research firm shared manufacturers in Malaysia have started to show some optimism despite the US-China stalemate.
For Malaysia’s trade outlook, it forecast exports and imports to continue growing at a steady pace of 3.6 per cent and 3.0 per cent, respectively in 2019. Recovery in domestic exports will contribute towards the exports growth this year.
It added that the country’s industrial production index has been expanding steadily since March 2019, and as for commodity-based sectors, better performance can be expected in 2H19 particularly for LNG and palm oil. — Bernama
