KUALA LUMPUR (Nov 20): TA Securities Research has forecasted a more robust Gross Domestic Product (GDP) growth trajectory of 5.0% in 2024, driven by the expectation of a sustained global economic recovery, particularly in China.
In a note on Monday, the research house said that Malaysia’s real GDP increased by 3.3% year-on-year (y-o-y) in the third quarter of 2023, exceeding its revised expectations during the GDP preview and the 3.2% median forecast of analysts polled by Bloomberg. This growth was fueled by the Malaysian government’s unwavering commitment to pro-growth initiatives and increased political stability, which is expected to bolster confidence among foreign investors and potentially result in a greater influx of capital and portfolio investments.
TA Securities said it maintains its 4.6% y-o-y growth projection for the fourth quarter, aligning with an updated annual growth target of 4.0%. However, it remains vigilant and open to adjustments, especially in response to any significant setbacks in the country’s economic trajectory.
The research house said that this optimistic outlook is based on various factors such as strong external demand from China, increased private consumption due to rising wages and lower interest rates, and improved business sentiment following the easing of COVID-19 restrictions. Additionally, it expects continued government support for key sectors such as manufacturing and services to drive growth further.