MIDF Analysis expects Malaysia’s GDP progress to cruise at 4.7% in 2024 in comparison with an estimated 4.2% in 2023, underpinned by resilient home demand and a revival in exterior commerce.
“Furthermore, stabilisation of financial coverage in main international locations, a stronger restoration in China and supportive international commodity costs are anticipated to spice up Malaysia’s exterior entrance in 2024,” mentioned MIDF Analysis director and head of technique Imran Yassin Md Yusof.
He mentioned MIDF believed inflationary pressures and rates of interest that influenced markets in 2023 have waned, whereas restoration in China’s economic system and implementation of presidency insurance policies can be key displays subsequent yr.
Globally, he famous that progress prospects ought to enhance as a result of stabilisation in main nation insurance policies, stronger demand from China, and supportive commodity costs that may assist Malaysia’s exports.
Domestically, regular non-public consumption, busier tourism, and infrastructure constructing will anchor progress. Nonetheless, inflation might hover above 3% as a result of gas subsidy rationalisation.
MIDF sees the OPR holding regular at 3.00% in 2024 based mostly on expectations of steady core inflation and difficult exterior local weather. It additionally expects the ringgit to basically strengthen with the ending of the US Federal Reserve tightening cycle.
For the inventory market, the analysis home forecasts the FBM KLCI to achieve 1,665 factors by end-2024, supported by a much less hostile financial backdrop and resilient financial actions. – TMR / pic TMR FILE