Bank Negara has revised the country's 2019 GDP forecast to 4.3 and 4.8 percent, down from its previous estimate of 4.9 percent.

Governor Shamsiah Mohd Yunus said the move was in tandem with similar growth revisions on the global economy.

"Global growth was revised downwards from 3.7 percent (to 3.5 percent) and world trade was also revised downwards.

"That was the main reason why, looking forward, we are projecting a growth of between 4.3 percent to 4.8 percent this year, instead of the 4.9 percent that was projected earlier," she told a press conference at the central bank's headquarters in Kuala Lumpur today.

The bank also forecasted private consumption, the services sector, the manufacturing sector and gross exports to contract in 2019 compared to last year.

Earlier, Shamsiah had unveiled the bank's 2018 Annual Report, which reported the country's GDP growth last year as 4.7 percent.

This was down from the forecasted 5.5 to six percent. GDP growth in 2017 was 5.9 percent.

The governor explained that global trade tensions and regime change in the 14th general election as main factors for causing uncertainty in the economy in 2018.

"We faced several major domestic challenges, ranging from unplanned commodity price disruptions to the historic political transition," she said.

Housing market less dire

In 2017, Bank Negara had warned of an oversupply of unaffordable homes and idle commercial space in the property market.

While the problem persisted in 2018, Shamsiah said the bank is hopeful about the housing market improving to accommodate what buyers can afford.

For one, she pointed out, the growth in house prices was finally trailing behind income growth, with the reverse being true previously.

"And we are still gradually rebalancing our housing supply towards the more affordable sectors. 

"In 2018, a higher share of new housing launches were priced below RM500,000."

Government initiatives, like stamp duty exemptions and home ownership campaigns, also helped maintain demand for affordable housing.

However, Shamsiah forecasted that the oversupply of office and retail space would continue to dog the market, with 144 shopping malls expected to enter Kuala Lumpur, Penang and Johor this year despite incumbent supply.

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