Domestic demand key for country's growth - economist

Malaysia’s domestic demand is expected to play a key role in sustaining the country’s overall growth going forward.

Bank Muamalat Malaysia chief economist Mohd Afzanizam Abdul Rashid said stability in the employment market, the implementation of infrastructure projects, and “pockets of improvement” in the technology sector are likely to keep the Malaysian economy on a steady path next year.

“On that note, the monetary policy stance will continue to provide support to domestic demand while the expansionary fiscal policies would help to spearhead the domestic economic engine via higher development expenditure.

“The downside risks would mainly come from the external sector such as geopolitics, inflation, and higher policy rates in the advanced countries, namely the US economy,” he said.

He was speaking to Bernama following the country’s gross domestic product (GDP) announcement for the third quarter.

Mohd Afzanizam said the expected improvement in tourism-related sectors, a possible upturn in the technology sector, and the implementation of infrastructure projects would be catalysts for sustainable growth next year.

The Malaysian economy expanded by 3.3 percent in the third quarter from 2.9 percent in the second quarter, supported by resilient domestic demand.

The main driver was domestic demand which grew by 4.8 percent, mainly on account of consumer spending and public investment of 4.6 percent and 7.5 percent, respectively.

However, net exports fell by 22.7 percent in the third quarter from minus 3.7 percent in the second quarter due to weakening external demand.

- Bernama

COMMENT | Boycott buffoonery: From chocolates to Israelis and Greek gods

Miti: M'sia needs to develop own economic strategy, not rely on others

M'sia's 3Q GDP expected to be better than previous quarter - Rafizi

Apec: Anwar to focus on regional cooperation, building economic resilience