Malaysia’s economy is set to grow this year with gross domestic product (GDP) likely to be above 5%, beating the 4.2% in 2016, said CIMB Group Holdings Bhd Chairman Nazir Razak.
Nevertheless, the cautious global economic growth in the second half of this year would limit the upside trajectory, he said, Bernama reported.
“The recent announcement of the GDP at 5.8% showed the strong economic momentum,” he told reporters on the sidelines of the ASEAN Roundtable Series on “Deepening Capital Markets in ASEAN: Opportunities and Challenges” in Kuala Lumpur Monday. He said the major markets, including the US, China and others had shown a growth recovery for the first half of this year.
“We have high content of commodities and etc, which are benefiting all from this synchronized global recovery,” he said. CIMB has maintained its GDP forecast at 5.1% for this year, he said.
Meanwhile, CIMB ASEAN Research Institute Chairman, Munir Majid, said the growth registered in the second quarter was at a very heartwarming rate. However, he said, the country should not be complacent with that.
“It is encouraging, however, there are younger people who are not getting employed or landing a good job but still need to pay back their education loans and deal with living costs. Some even have to take up a second job to make ends meet.
“So, still there are issues to be addressed. Aggregate numbers (GDP growth) are good as they give confidence in the economy, generate investment and are feel good factor, which are necessary,” he said.
Munir, when asked on ASEAN’s performance, said the Philippines registered a GDP growth of 6.5% despite all its political issues. “We have to think about ASEAN’s future growth which may grow in different forms and direction as pulled by China.”
Malaysia, he added, which has a strong and diversified source of income, is the largest economy after Indonesia and Thailand in ASEAN.
Meanwhile, second finance minister, Johari Abdul Ghani, said, “The Malaysian economy is very resilient at this point of time. Despite being impacted by external factors, the economy was still able to register good growth compared to other countries in the region by ensuring its sustainability.”
“Investment in public infrastructure is also very important to enhance inclusiveness, as otherwise, those living in rural and suburban areas would not benefit from the economic development,” he added.
