Bank Negara forecasts 4%-5% growth next year

 

Economic data shows strong private consumption, such as demand for passenger cars, demonstrating Malaysia’s resilience, says Bank Negara. (File pic)

PETALING JAYA: Bank Negara Malaysia is confident that Malaysia’s economy will register a growth of 4% this year and between 4% and 5% in 2024 after taking into consideration the country’s strong economic indicators, the bank’s governor, Abdul Rasheed Ghaffour, said today.

He said the continuing strength of the US dollar was not expected to derail Malaysia’s growth prospects. He said financial markets expected the US interest rate to be reduced next year, Bernama reported.

“This should ease the strength of the dollar and thus reduce pressure on the ringgit,” he said in Kuala Lumpur.

Global financial market uncertainties are expected to ease, barring any new adverse developments such as geopolitical tension, the governor said.

He said Malaysia’s economic data showed strong private consumption such as good demand for passenger cars, which demonstrated the country’s resilience in the face of continuous external shocks.

“Malaysia as a well-diversified economy will be able to achieve the growth targeted for next year,” he told a press conference after announcing the 2023 third-quarter gross domestic product figures today.

He said the central bank, in reaching its growth estimates, had considered the influence of an 8% service tax in the 2024 budget on public consumption, “but we have taken into consideration all the announcements made in the budget into our growth projection”. - FMT