AEIR 2017

Growth accelerated in 2017 to 5.9%, primarily driven by revival in exports and domestic demand. All sectors contributed to growth but the manufacturing sector stood out, with production rising by 6%, especially electrical and electronic equipment manufacturing. Inflation edged up, mostly due to rising transport costs; and the current account surplus widened. 

GDP growth is forecast at 5.3% in 2018 and 5% in 2019. First quarter 2018 data shows that consumer sentiment remains upbeat and investor sentiment is positive. Inflation is expected to decelerate in 2018 following last year’s adjustment in fuel and transport prices. Fiscal consolidation is still one of government key priorities to achieve the 1% of GDP fiscal deficit target by 2020. Malaysia is set to become a high-income economy in the next years, and moving up the global and regional value chains is a challenge.

Source: Asian Development Outlook 2018, ADB.
Latest Month-Ago Year-Ago
Composite Stock Price Index 1 1.0 (Aug18)1.0 1.0
Broad Money Growth 2 6.6 (Jul18)6.6 5.7
Headline Inflation Rate 3 0.9 (Jul18)0.8 3.1
Industrial/ Manufacturing Production Growth Rate 3 1.1 (Jun18)3.0 3.3
Merchandise Export Growth 3 15.8 (Jul18)15.8 15.5
Exchange Rate Index 4 109.1 (Aug18)108.0 114.2
1 Monthly average, local index.
2 %.
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
Source: Bloomberg LP; CEIC database; Department of Statistics of Malaysia.