KUALA LUMPUR: Malaysia’s gross domestic product is expected to be within the range of 4.2% to 4.4% this year, according to OCBC chief economist and head of treasury research & strategy Selena Ling.
“We are a little bit cautious, as we think 4.8% is a bit challenging as it makes the assumption that there will be no further escalation between the US and China.
“We assume because of that, global growth has a chance to recover. Manufacturing and trade in particular will do better than in 2019 and China will not be pushed to take drastic measures to counter pressure from the US,“ she told the media at OCBC’s 2020 Economic outlook briefing this morning.
She noted that if China is more stable, then there will be a follow on effect through the rest of Asia, providing a more calm and stable market environment.
However, she cautioned that should any of these assumptions change, there is a risk of slippage.
Meanwhile, on the ringgit, Ling said Malaysia has managed to gradually build up its foreign exchange reserves thanks to favourable capital flows.
At the same time, the supportive environment has added to the recent strengthening of the ringgit against the dollar.
As such, Ling said OCBC expects the ringgit to reach 4.04 against the greenback by year- end.
source https://www.thesundaily.my/business/malaysia-s-gdp-growth-seen-at-42-44-this-year-DC1895498
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