KUALA LUMPUR, Jan 12 ― Standard Chartered Bank has forecast that Malaysia’s gross domestic product growth is likely to ease to 4.0 per cent this year following 2022’s 8.8 per cent estimate.
Domestically, he said, higher interest rates may dampen private investment sentiment, especially given the gloomy global outlook, while higher household debt-servicing costs may weigh on discretionary spending. Meanwhile, Lee said the manufacturing sector might see slower activity in externally oriented segments such as electronics. Still, domestically oriented sectors such as consumer- and construction-related segments may see good demand.
“Buoyant foreign direct investment over the last few quarters should also support investment activity. We project headline consumer price index inflation at 3.1 per cent in 2023, moderating from 3.4 per cent in 2022, on negative base effects and lower food and energy prices in 2023,” he said. On the overnight policy rate, he said Standard Chartered expects Bank Negara Malaysia to hike rates again in January by 25 basis points to 3.00 per cent, before pausing in March.
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