In recent years, the Malaysian economy has shown signs of resilience and growth, with real GDP increasing by 3.3% year-on-year (y-o-y) in the third quarter of 2023. This growth trajectory is expected to continue in the coming years, with TA Securities Research predicting a more robust Gross Domestic Product (GDP) growth of 5.0% in 2024.
The optimistic outlook is driven by several factors, including the sustained global economic recovery, particularly in China, which is poised to drive heightened external demand. Additionally, Malaysia’s unwavering commitment to pro-growth initiatives and increased political stability are expected to further bolster confidence among foreign investors and potentially result in a greater influx of capital and portfolio investments.
According to TA Securities Research, the Malaysian government’s commitment to pro-growth initiatives is expected to persist in the coming years. This will likely result in increased foreign investment and portfolio investments into the country’s economy.
Despite this optimistic outlook, TA Securities remains vigilant and open to adjustments periodically, especially in response to any significant setbacks in the country’s economic trajectory. At present, they maintain their projection for a 4.6% y-o-y growth rate for the fourth quarter of 2023, which aligns with an updated annual growth target of 4.0%.