KUALA LUMPUR: Malaysia’s domestic demand is expected to play a key role in sustaining the country’s overall growth going forward.
Mohd Afzanizam Abdul Rashid, the chief economist of Bank Muamalat Malaysia Bhd, said stability in the employment market, the implementation of infrastructure projects and “pockets of improvement” in the technology sector are likely to keep the Malaysian economy on a steady path next year.
“On that note, the monetary policy stance will continue to provide support to domestic demand while the expansionary fiscal policies would help to spearhead the domestic economic engine via higher development expenditure.
“The downside risks would mainly come from the external sector such as geopolitics, inflation and higher policy rates in the advanced countries, namely the US economy,” he told Bernama following the country’s gross domestic product (GDP) announcement for the third quarter.
Mohd Afzanizam said the expected improvement in tourism-related sectors, a possible upturn in the technology sector and the implementation of infrastructure projects would be the catalysts for sustainable growth next year.
The Malaysian economy expanded by 3.3 per cent in the third quarter from 2.9 per cent in the second quarter, supported by resilient domestic demand.
The main driver was domestic demand which grew by 4.8 per cent, mainly on account of consumer spending and public investment of 4.6 per cent and 7.5 per cent, respectively.
However, net exports fell by 22.7 per cent in the third quarter from minus 3.7 per cent in the second quarter due to weakening external demand. – Bernama
