KUALA LUMPUR: Malaysia’s home demand is anticipated to play a key role in sustaining the country’s overall progress going ahead.
Mohd Afzanizam Abdul Rashid, the chief economist of Bank Muamalat Malaysia Bhd, mentioned stability in the employment market, the implementation of infrastructure initiatives and “pockets of enchancment” in the know-how sector are probably to preserve the Malaysian economic system on a gradual path subsequent 12 months.
“On that word, the financial coverage stance will proceed to present help to home demand whereas the expansionary fiscal insurance policies would assist to spearhead the home financial engine by way of larger growth expenditure.
“The draw back dangers would primarily come from the exterior sector similar to geopolitics, inflation and better coverage charges in the superior nations, particularly the US economic system,” he instructed eNM following the country’s gross home product (GDP) announcement for the third quarter.
Mohd Afzanizam mentioned the anticipated enchancment in tourism-related sectors, a potential upturn in the know-how sector and the implementation of infrastructure initiatives can be the catalysts for sustainable progress subsequent 12 months.
The Malaysian economic system expanded by 3.3 per cent in the third quarter from 2.9 per cent in the second quarter, supported by resilient home demand.
The predominant driver was home demand which grew by 4.8 per cent, primarily on account of client spending and public funding of 4.6 per cent and seven.5 per cent, respectively.
However, internet exports fell by 22.7 per cent in the third quarter from minus 3.7 per cent in the second quarter due to weakening exterior demand. – eNM
