KUALA LUMPUR, Oct 12 — RHB Research Institute expects Malaysia’s real gross domestic product (GDP) to grow by 5.3 per cent in 2017, before inching up to 5.4 per cent for 2018 from 4.2 per cent in 2016.
The research house said the findings were on the back of the robust pace of industrial activities, as the Industrial Production Index (IPI), continued to improve by 6.8 per cent to 133.2 in August from 124.7 recorded in the same month last year, according to figures released by the Department of Statistics (DoS).
“There was a pick-up in mining activities, while manufacturing output remained robust during the month. Given the strong industrial and external activities, Malaysia’s real GDP may surprise us on the upside in the third quarter 2017,” it added, in a research note today.
RHB Research said the stronger growth in 2018 would likely be supported by a stronger increase in exports, pick-up in domestic demand, and modest increase in public spending and investments. — Bernama