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 accordance 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 mentioned on Friday, down from 5.3 p.c development within the third quarter however forward of an advance estimate of 4.8 p.c.
The yr on yr efficiency marked a big soar from GDP development of three.7 p.c in 2023.
“Going ahead, whereas the worldwide atmosphere might be difficult, development of the Malaysian financial system will probably be pushed by sturdy growth in funding exercise, resilient family spending and growth in exports supported by Malaysia’s robust financial fundamentals,” Financial institution Negara Malaysia Governor Abdul Rasheed Ghaffour mentioned.
Financial institution Negara Malaysia mentioned that inflation dropped to 1.8 p.c in 2024, down from 2.5 p.c the earlier yr.
The Malaysian ringgit appreciated 2.7 p.c in opposition to the US greenback, the central financial institution mentioned, and in addition gained in opposition to the Singapore greenback, South Korean gained and Japanese yen.
Financial institution Negara Malaysia mentioned that the financial outlook was topic to the danger of slowing development in Malaysia’s buying and selling companions amid a heightened menace of commerce restrictions and weaker commodities manufacturing.
“Nonetheless, potential upside to development contains better spillovers from the tech upcycle, extra sturdy tourism actions and sooner implementation of funding tasks,” the central financial institution mentioned.
