Malaysia’s GDP to expand 4.9% in 2019, says finance minister
This is after January’s consumer prices eased to the lowest in almost a decade, raising concerns that the country is confronting a weak demand or in a recessionary mode.
Malaysia’s gross domestic product is predicted to expand 4.9% for this year even as inflationary pressures in the country ease, said the country’s finance minister Lim Guan Eng in a statement on Sunday.
This is after January’s consumer prices eased to the lowest in almost a decade, raising concerns that the country is confronting a weak demand or in a recessionary mode.
‘Strong economic growth numbers, with the economy expanding by 4.7% in 2018, immediately dispels any deflationary fears following the drop in January 2019 consumer price index (CPI) by 0.7%, the lowest in nearly 10 years,’ Mr Lim assured.
January’s fall in CPI was not caused by a recession or any kind of weak demand, Mr Lim said. Mr Lim justified the inflationary adjustment to the replacement of the goods and services tax (GST) with the sales and services tax (SST) and the stabilizing of fuel prices with a ceiling price mechanism.
The adjustment of the policy expands the economic pie to benefit both businesses and the people, he claimed.
For example, the adjustment to the policies have reduced the price of RON95 petrol to be 13% cheaper in January compared to a year ago, Mr Lim said, and that had positively improved the prices of goods and services that are free from GST.
‘The price decline should improve the purchasing power of Malaysian consumers and add to economic growth,’ he said.
The Malaysian economy is healthy, said Mr Lim, basing his view on a recent Nielsen survey which showed consumer confidence results higher than a year ago, as well as recording the highest jump in the confidence scoring among all countries in the survey.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
