KUALA LUMPUR: MIDF Research expects Malaysia’s economy to grow at 4.5% this year, thanks to steady domestic demand and recovery in the mining and construction sectors.
The research house said although the mining sector remained in negative territory in the fourth quarter of 2019, it has shown some improvement and is expected to continue to recover this year as the impacts from supply distribution wane.
“In addition, Petronas announced that its second floating LNG (PFLNG) unit is expected to be operational in the second quarter of this year, giving an impetus to the mining sector,” it said in a research note today.
MIDF Research said the gradual pick-up in commodity prices would also support the overseas sales of crude oil and natural gas, as well as palm oil, for this year.
Meanwhile, it said the recent overnight policy rate cut by 25 basis points to 2.75% in January and the upcoming government stimulus package are expected to lift domestic demand.
However, it added, the Covid-19 epidemic could have a negative but temporary influence on tourist arrivals. – Feb 13, 2020, Bernama
