KUALA LUMPUR: The following are the highlights from Bank Negara Malaysia (BNM) Annual Report 2023, Financial Stability Review for the second half of 2022 (2H 2023), as well as Economic and Monetary Review 2023 released today:
- Malaysia’s economy is projected to grow between 4.0 per cent and 5.0 per cent in 2024, underpinned by continued expansion in domestic demand and improvement in external demand, said Bank Negara Malaysia (BNM).
- Tourism is expected to improve further, while the implementation of new and ongoing multi-year projects by both the private and public sectors would support investment activity.
- The construction sector is expected to grow 6.7 per cent in 2024, followed by the services sector (up 5.5 per cent), manufacturing (3.5 per cent) and mining and quarrying (3.5 per cent), while agriculture is expected to contract by 0.5 per cent.
- Headline inflation is expected to remain moderate, between 2.0 per cent and 3.5 per cent this year, amid contained cost pressures from easing global supply conditions.
- Collective actions are needed to safeguard the value of the ringgit
- Private consumption is projected to grow by 5.7 per cent in 2024 versus 4.7 per cent in 2023, underpinned by the continued improvement in labour market conditions, while private investment is expected to grow 6.1 per cent this year versus 4.6 per cent previously.
- Whilst the unemployment rate is projected to decline to 3.3 per cent in 2024, the employment growth is expected to continue expanding, supported by sustained demand for workers, said BNM.
- Malaysia’s gross exports are expected to turn around, recording growth of 5.0 per cent in 2024 versus a contraction of 8.0 per cent in 2023, while gross imports are projected to grow by 5.4 per cent in 2024 versus a decline of 6.4 per cent last year
- The current account of the balance of payments (BOP) is expected to register a higher surplus of between 1.8 per cent and 2.8 per cent of the gross domestic product (GDP) this year – an improvement from 1.2 per cent of GDP in 2023
- Monetary policy this year would focus on maintaining a stance that is conducive to sustainable growth while managing risks to inflation.
- Volatile financial market conditions would remain a key downside risk to insurers and takaful operators (ITOs) in 2024, given their sizeable bond and equity investments
- BNM’s priorities in 2024 are to build on Malaysia’s strong Islamic finance ecosystem
- Solvency and liquidity stress test exercises continue to affirm that banks in the country remain highly resilient in the face of severe macroeconomic, financial, and liquidity shocks. – BERNAMA
