Malaysia to maintain GDP growth, driven by private sector

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Malaysia could sustain its GDP growth, driven by the private sector. — Bernama photo

KUCHING: Malaysia could sustain its gross domestic product (GDP) growth, driven by the private sector.

Affin Hwang Capital noted that amidst moderating global growth, oil prices are holding up, which should be positive for Malaysia’s GDP.

“Affin’s economics team expects the economy to be supported by the private sector from capacity expansion, consumption spending and potentially a recovery in commodity prices,” the research firm said in its banking sector update.

“Recently Malaysia’s third quarter of 2019 (3Q19) GDP declined to 4.4 per cent versus 4.9 per cent in 2Q19 and 4.4 per cent in 3Q18. To recap, Affin’s economics team currently forecasts a 2019E GDP growth of 4.7 per cent.”

Affin Hwang Capital recapped that on a more positive note, the Nikkei Purchasing Manager Index improved to 49.5 in November 2019 versus 49.3 in October.

It also recapped that as the unemployment rate improved marginally to 3.2 per cent in October 2019 (from 3.3 per cent in September 2019) the labour-force participation rate also remained at its highest level of 68.5 per cent in the past two years and the workforce is still growing in tandem with population growth.

“A robust labour market should be supportive of increased consumer spending and demand for both big- and small-ticket items.”