Malaysia’s economy in the fourth quarter of 2023 likely expanded 3.4% from a year earlier, marginally faster than the previous three-month period. The country’s exports, which dropped lower than expected in December 2023, are expected to receive a boost from an anticipated upturn in the global tech cycle in 2024. RHB Investment Bank maintains its projection that Malaysia’s gross domestic product (GDP) will grow by 4.6% in 2024. However, Malaysia’s economy ended 2023 on a down note, with growth slowing and exports contracting sharply.
Outlook for Malaysia’s Economy
The outlook for Malaysia’s economy is currently cloudy. While there was a slight expansion in the fourth quarter of 2023, growth has been slowing overall. The contraction in exports is a cause for concern, but economists are optimistic that an upturn in the global tech cycle in 2024 will support Malaysia’s export expansion. RHB Investment Bank predicts a GDP growth rate of 4.6% for Malaysia in 2024, indicating a potential acceleration in the economy. However, Malaysia’s economy in 2023 showed signs of a slowdown, with diminishing growth and contraction in exports.
Impact of the Red Sea Crisis
The conflict between Israel and Hamas has caused disruptions in the global shipping industry. Malaysia, being a significant player in international trade, has been affected by the volatile situation in the Red Sea. The ripples of disruption have led to challenges in shipping goods, further impacting Malaysia’s exports. HSBC highlights the Red Sea crisis as a factor affecting Malaysia’s economy, exacerbating the existing slowdown in growth.
Opportunities in the Global Economic Shift
Despite the challenges, Malaysia is well-positioned to benefit from the opportunities arising from the global economic shift. HSBC Malaysia emphasizes that the country is in a favorable position to capitalize on the changing global economic landscape. As industries and supply chains adapt to global economic shifts, Malaysia has the potential to attract investments and leverage its competitive advantages for economic growth.
Standard Chartered’s GDP Projection for Malaysia
Standard Chartered predicts a 4.8% growth in Malaysia’s gross domestic product (GDP) for 2024. The projection indicates a positive outlook for Malaysia’s economy, with expectations of an acceleration in growth. This projection aligns with RHB Investment Bank’s forecast of 4.6% GDP growth in 2024. These forecasts provide some optimism for Malaysia’s economic prospects in the coming year.
- Malaysia’s economy in the fourth quarter of 2023 expanded by 3.4%.
- Exports in December 2023 fell lower than anticipated.
- RHB Investment Bank predicts a 4.6% GDP growth for Malaysia in 2024.
- Malaysia’s economy ended 2023 with slower growth and sharp contraction in exports.
- The Red Sea crisis has disrupted global shipping, affecting Malaysia’s exports.
- Malaysia is well-positioned to benefit from the global economic shift.
- Standard Chartered predicts a 4.8% GDP growth for Malaysia in 2024.
“Bloomberg” — Malaysia’s economy grew at a slower-than-estimated pace in the fourth quarter as exports to China fell, signaling that a downturn in global trade may have started affecting growth in the country.
“Department of Statistics Malaysia (DoSM)” — Malaysia’s economy is estimated to grow by 3.4% in the fourth quarter of 2023, compared to 3.3% in the previous quarter.