The latest annual Bank Negara Malaysia report paints a less optimistic picture of the domestic economy, with GDP growth expected to moderate further in 2016 to 4.0%-4.5% (2015: 5.0%, 2014: 6.0%).
Private consumption and investment, the main drivers of the Malaysian economy, are projected to grow at the slowest rates since the Global Financial Crisis in 2009.
The outlook is equally gloomy for public expenditure as the government remains committed to trim the fiscal deficit amidst dwindling oil and gas revenue.
Exports is expected to be an exception as it is projected to expand by 3.2% in 2016 after barely growing in 2015 thanks to its increasingly diversified nature and expected improvement in demand from the advanced economies.
The current account of the balance of payments is projected to remain in a surplus position, but smaller at 1.0% to 2.0% of GNI in 2016 compared to 3.0% of GNI in 2015.
Inflation is expected to increase to between 2.5% to 3.5% in 2016 from 2.1% in 2015 mainly due to adjustments to administered prices and a weak ringgit.
BN reasserts its monetary policy stance in support of sustainable growth of the domestic economy and price stability indicating that the overnight policy rate would likely remain unchanged for the year.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 9122 views | 7 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....