Prospect For Companies in Malaysia

The Malaysian economy is expected to grow at a moderate pace in 2019 and 2020, supported by domestic demand and a gradual recovery in global demand. Private consumption and investment are expected to remain the main drivers of growth, while exports are expected to contribute positively as global demand improves.

The fiscal deficit is expected to widen slightly in 2019 as government expenditure increases in line with the budget, but is still projected to remain within the government’s target of 3.0% of GDP. Inflation is expected to remain subdued, averaging 0.7% in 2019 and 1.2% in 2020.

The unemployment rate is expected to remain low at 3.3% in 2019 and 2020.

Overall, the outlook for the Malaysian economy is positive, with growth expected to remain steady in the next two years. Risks to the outlook are broadly balanced, but include downside risks from a potential escalation in trade tensions and slower-than-expected global economic growth.