Shrinking current account surplus is worrying
Prathab V | 29 Mar 2019 00:30
According to the central bank, which released its 2018 annual report on March 27, the Malaysian economy moderated to 4.7% in 2018 compared to 5.9% in 2017.
This is mainly attributed to global trade headwinds and also local challenges. Moreover, with lower commodity prices such as for palm oil and increasing economic uncertainties, consumer sentiments are declining.
Malaysian Rating Corporation (MARC) sees the gross domestic product (GDP) posting a 4.9% growth in 2019. Bank Negara Malaysia (BNM), however, is forecasting GDP growth this year to be 4.3% - 4.8%.
Economists note that, following the release of annual report, the slowdown in the economy brings some challenges and opportunities, such as the strengthening of the ringgit.
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