The Malaysian economy is expected to experience robust growth in 2024 with a projected Gross Domestic Product (GDP) growth rate of 5.0%, according to TA Securities Research. This optimistic outlook is fueled by the expectation of a sustained global economic recovery, particularly in China, which will drive increased external demand.
Malaysia’s real GDP grew by 3.3% year-on-year (y-o-y) in the third quarter of 2023, exceeding TA Securities’ revised expectations and the median forecast of analysts polled by Bloomberg. The research house attributes this growth to the Malaysian government’s commitment to pro-growth initiatives and increased political stability, which is expected to bolster confidence among foreign investors.
In turn, this could lead to a greater influx of capital and portfolio investments into Malaysia. TA Securities currently maintains its 4.6% y-o-y growth projection for the fourth quarter, aligning with an updated annual growth target of 4.0%. However, the research house remains vigilant and open to adjustments, especially in response to any significant setbacks in the country’s economic trajectory.