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Malaysia's economy backed by firm growth prospects, stable commodity prices & resilient ringgit: Affin Bank president

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Publish date: Mon, 11 Nov 2024, 11:26 PM

KUALA LUMPUR: Malaysia's economic outlook for 2025 is positive, backed by strong growth prospects, stable commodity prices and a resilient currency, according to Affin Bank Bhd.

Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah said despite global uncertainties and volatility in energy and commodity prices, Malaysia's economy remains resilient, fuelled by strong fundamentals and robust domestic demand.

"The recent 5.3 per cent year-on-year gross domestic product (GDP) growth in the third quarter of 2024 underscores this resilience," he said at Affin's "Market Outlook 2024 – Propelling Malaysia Forward".

Wan Razly said Affin welcomes the government's strategic RM421 billion budget unveiled in 2025 Budget.

He said this expansionary yet prudent budget, with RM335 billion dedicated to operating expenditure and RM86 billion to development expenditure, sets the stage for sustainable and inclusive economic growth.  

"The fiscal deficit position is targeted to consolidate from 5 per cent of GDP in 2023 to 4.3 per cent of GDP in 2024 and 3.8 per cent of GDP in 2025.

"We believe the strengthening of fiscal buffers will be significant in the country's financial resilience to support the economic priorities as well as provide ample fiscal policy space to support economic activity in any situation," he said.

Wan Razly said Malaysia's economy is expected to grow by 5.2 per cent in 2025, following a projected 5.0 per cent growth in 2024, indicating strong confidence in the economy's resilience.

He said oil prices are likely to stabilise around US$ 75 per barrel, slightly lower than the US$ 80 forecast for 2024, due to supply constraints from major producers.

On ringgit, he said the bank expects the exchange rate for the US dollar to ringgit to strengthen to around 4.10, compared to 4.20 in 2024, making Malaysia's currency one of the strongest in the region.

"Overall, Malaysia's economic outlook for 2025 is positive, with strong growth prospects, stable commodity prices, and a resilient currency, creating many opportunities across important sectors," he added.

 

https://www.nst.com.my/business/corporate/2024/11/1133040/malaysias-economy-backed-firm-growth-prospects-stable-commodity

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