It's time to be cautiously optimistic about the economy

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MP SPEAKS | Steady, incremental progress is what we can expect under the Harapan gov't.

| When the Quarterly Confidence Indicator for the Q1 of 2019 was published by the Department of Statistics, Malaysia , in the Business Tendency Survey report,The February 2019 figure for the Leading Index Economic Indicator, also published by DOSM, showed a 2.2 percent fall from 118.9 to 116.3, the largest fall since April 2009.

Amidst all this negative news, as Pakatan Harapan approaches our first year in government post-GE14, there are some positive signs that the economy is turning a corner and cautious optimism that the second half of 2019 will yield better results. There are signs that the lacklustre property market may have bottomed out in 2018 with transaction volume and value increasing by 0.6 percent and 0.3 percent after 3 consecutive years of decline.of the Home Ownership Campaign 2019 and various discounts and tax incentives being offered to property buyers, there is cautious optimism of a more vibrant property market in 2019. Vehicle sales, a useful barometer of consumer sentiment, increased by 9.

Thirdly, with the resumption of certain big-ticket public infrastructure and construction projects, notably the East Coast Rail Link and the Bandar Malaysia development, corporate activity will increase as will investment interest especially from companies from China. Five out of the seven Asean countries experienced an increase in their respective PMI levels . Even though Singapore’s manufacturing PMI was less than 50, it’s overall PMI increased from 51.8 in March 2019 to 53.3 in April 2019.

 

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