Categories: News

Octa insights: analysis and outlook for Malaysia’s economic growth in the first quarter of 2024

KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 27 May 2024 – The latest economic report for the first quarter of 2024 from Bank Negara Malaysia (BNM), combined with new, revised data from the Department of Statistics Malaysia (DOSM), gives optimism about Malaysia’s economy in the coming year.

Thus, the economy grew by 4.2% at the end of the first quarter of 2024, beating the 3.9% growth forecast. By comparison, in 2023, the economy grew by 3.7%, with a sharp drop from a 22-year high of 8.7% in 2022.

Robust domestic demand, increased exports, investment and consumption drove this growth. Exports grew by 2.2% year-on-year, pushed by increased demand for electronics, palm oil and other goods.

In addition to the sustained expansion of the manufacturing and services sectors, the labour market is also doing quite well. The unemployment rate is expected to improve to 3.2% (2023 — 3.4%), supporting the growth trajectory significantly.

Despite the positive momentum, BNM is apparently not yet ready to revise its economic growth forecasts for 2024—the forecast is unchanged at 4.0%- 5.0%.

‘A softening labour market, weak currency and weak external demand are likely to weigh on economic activity in the coming quarters,’ commented Kar Yong Ang, the Octa broker’s financial market analyst.

The stability of the Malaysian economy is overshadowed by global geopolitical risks: heightened trade tensions between the U.S. and China, ongoing conflicts in Ukraine, Israel, and the Gaza Strip. These factors negatively impact logistics and overall global trade activities.

The prevailing tight monetary policy adopted by most advanced economies poses downside risks for Malaysia, particularly the Malaysian ringgit, which is not feeling well, losing more than 2.4% against the U.S. dollar since the beginning of 2024.

‘In such a situation, we cannot completely rule out a potential increase in the overnight benchmark interest rate,’ said Kar Yong Ang, the Octa broker’s financial market analyst.

In summary, all macroeconomic indicators point to a robust Malaysian economy. Only external factors, such as the weakening demand from the U.S. and tight monetary policy adopted by most countries, introduce uncertainty, which may further affect BNM’s monetary tightening.

Hashtag: #Octa

The issuer is solely responsible for the content of this announcement.

Octa

Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries with more than 42 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

Octa has also won over 70 awards since its foundation, including the ‘Best Educational Broker 2023’ award from Global Forex Awards and the ‘Best Global Broker Asia 2022’ award from International Business Magazine.

Miscw.com

Recent Posts

Minsuzenraku Opens First Hong Kong Location, Bringing Taiwan’s Popular No-Menu Teppanyaki Experience

HONG KONG SAR - Media OutReach Newswire - 22 November 2024 - Minsuzenraku, Taiwan's highly…

15 mins ago

New Directions East Asia 2024: Exploring the Transformative Role of Language Assessment on Education and Society

Bringing together UK and global expertise, the 12th edition of the global language testing and…

1 hour ago

Wine Connection’s Annual Wine Tasting Fair 2024: Discover Your Next Favourite

SINGAPORE - Media OutReach Newswire - 22 November 2024 - Wine enthusiasts in Singapore can…

3 hours ago

Get Wild about the Festive Season with ChristmasVille Furry Monsters Unleash Holiday Fun at Pacific Place and Starstreet Precinct

HONG KONG SAR - Media OutReach Newswire - 22 November 2024 - The spirit of…

3 hours ago

UFC® FIGHT NIGHT MACAU at Galaxy Macau A Thrilling Night of Fights Set for Galaxy Arena on November 23

The Press Conference for the Event Was Held This Afternoon at the Galaxy International Convention…

3 hours ago

HKPC Wins Gold Award in Government PR Category at 20th China Golden Awards for Excellence in Public Relations

HONG KONG SAR - Media OutReach Newswire - 22 November 2024 - The Hong Kong…

3 hours ago