Central financial institution says Southeast Asian financial system on monitor for sturdy funding, exports and family spending going ahead.
Malaysia’s financial system grew 5.1 p.c in 2024, as robust home demand and funding offset a downturn within the commodities sector, in keeping with the Southeast Asian nation’s central financial institution.
Gross home product (GDP) expanded 5 p.c within the October-December quarter, Financial institution Negara Malaysia stated on Friday, down from 5.3 p.c progress within the third quarter however forward of an advance estimate of 4.8 p.c.
The 12 months on 12 months efficiency marked a major bounce from GDP progress of three.7 p.c in 2023.
“Going ahead, whereas the worldwide surroundings might be difficult, progress of the Malaysian financial system shall be pushed by sturdy enlargement in funding exercise, resilient family spending and enlargement in exports supported by Malaysia’s robust financial fundamentals,” Financial institution Negara Malaysia Governor Abdul Rasheed Ghaffour stated.
Financial institution Negara Malaysia stated that inflation dropped to 1.8 p.c in 2024, down from 2.5 p.c the earlier 12 months.
The Malaysian ringgit appreciated 2.7 p.c towards the US greenback, the central financial institution stated, and in addition gained towards the Singapore greenback, South Korean gained and Japanese yen.
Financial institution Negara Malaysia stated that the financial outlook was topic to the danger of slowing progress in Malaysia’s buying and selling companions amid a heightened menace of commerce restrictions and weaker commodities manufacturing.
“Nonetheless, potential upside to progress contains larger spillovers from the tech upcycle, extra sturdy tourism actions and sooner implementation of funding initiatives,” the central financial institution stated.
