In Kuala Lumpur, TA Securities Research predicts a more robust Gross Domestic Product (GDP) growth trajectory of 5.0% in 2024, fueled by the expectation of a sustained global economic recovery, particularly in China. The research house said Malaysia’s real GDP increased by 3.3% year-on-year (y-o-y) in the third quarter of 2023, which was above its revised expectations during the GDP preview and the 3.2% median forecast of analysts polled by Bloomberg.
The Malaysian government’s unwavering commitment to pro-growth initiatives is expected to persist, further supported by increased political stability. This has the potential to bolster confidence among foreign investors, potentially resulting in a greater influx of capital and portfolio investments. At present, TA Securities maintains its 4.6% y-o-y growth projection for the fourth quarter, aligning with an updated annual growth target of 4.0%.
In its earlier GDP preview report, TA Securities anticipated the possibility of growth dipping below 4.0%, citing the possibility for a weaker third-quarter growth. However, it outperformed. Nevertheless, TA Securities remains vigilant and open to adjustments, which will be made periodically especially in response to any significant setbacks in the country’s economic trajectory.”