KUALA LUMPUR, Sept 4 ― MIDF Research expects Malaysia's gross domestic product (GDP) to grow at 4.9 per cent year-on-year in 2019, on the back of strong domestic demand and recovery in commodity-based sectors.
In a note today, the research firm said it also expected the manufacturing sector to continue to expand in the second half of this year, albeit at a moderating pace, after the IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) fell to 47.4 in August 2019 from 47.6 in July.
Despite the weak PMI, rising employment and increasing optimism signalled a brighter outlook moving forward, while the Business Tendency Index for the manufacturing sector released last month showed confidence at a three-month high.
“In fact, GDP of the manufacturing sector expanded by 4.3 per cent year-on-year in the second quarter this year, slightly better than the first quarter, indicating a steady upward momentum,” it said.
Meanwhile, Ambank Research projected a more bearish outlook for the country’s 2019 GDP growth as the weak July and August PMI reading suggested the economy could ease during the third quarter.
“Our preliminary estimate suggested that the economy could grow around 4.6 per cent year-on-year,” it added. ― Bernama
