Malaysia’s GDP to expand 4.9% in 2019, says finance minister

This is after January’s consumer prices eased to the lowest in almost a decade, raising concerns that the country is confronting a weak demand or in a recessionary mode.

Malaysia’s gross domestic product is predicted to expand 4.9% for this year even as inflationary pressures in the country ease, said the country’s finance minister Lim Guan Eng in a statement on Sunday.

This is after January’s consumer prices eased to the lowest in almost a decade, raising concerns that the country is confronting a weak demand or in a recessionary mode.

‘Strong economic growth numbers, with the economy expanding by 4.7% in 2018, immediately dispels any deflationary fears following the drop in January 2019 consumer price index (CPI) by 0.7%, the lowest in nearly 10 years,’ Mr Lim assured.

January’s fall in CPI was not caused by a recession or any kind of weak demand, Mr Lim said. Mr Lim justified the inflationary adjustment to the replacement of the goods and services tax (GST) with the sales and services tax (SST) and the stabilizing of fuel prices with a ceiling price mechanism.

The adjustment of the policy expands the economic pie to benefit both businesses and the people, he claimed.

For example, the adjustment to the policies have reduced the price of RON95 petrol to be 13% cheaper in January compared to a year ago, Mr Lim said, and that had positively improved the prices of goods and services that are free from GST.

‘The price decline should improve the purchasing power of Malaysian consumers and add to economic growth,’ he said.

The Malaysian economy is healthy, said Mr Lim, basing his view on a recent Nielsen survey which showed consumer confidence results higher than a year ago, as well as recording the highest jump in the confidence scoring among all countries in the survey.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.