Kenanga Research has projected Malaysia's gross domestic product (GDP) this year to be at 5.7 per cent.

In a research note today, Kenanga said the projection was based on the expectation of the GDP picking up and expanding to 6.9 per cent in the second half, after shrinking in the first to 4.5 per cent from 9.4 per cent last year.

It said the expansion was due to the kick-off of the government-initiated mega infrastructure project under the Economic Transformation Programme (ETP), as well as, a cautiously optimistic outlook on the country's major trading
partners.

Meanwhile, AmResearch in a statement said the speedier implementation of the ETP and the 10th Malaysia Plan (10MP) in the second half, would drive a trend-wise growth of six per cent by the final quarter of this year.

Therefore, the research house has maintained the view that the GDP would likely grow at 5.5 per cent this year, with the growth momentum largely to be felt in the second half.

As for Malaysia's Industrial Production Index (IPI) which tracks overall industrial output, AmResearch said it contracted by 7.2 per cent month-on-month in February, mainly due to a lower output in the manufacturing sector (-6.1 per cent) and electricity (-9.2 per cent).

However, on a year-on-year basis, the index grew at five per cent in February, attributed to a faster growth in the manufacturing sector (7.9 per cent) and electricity (0.7 per cent). -- Bernama