RHB | Malaysia | Business Conditions And Consumer Sentiment Improved In The 2Q, 23 July 2014

Economic Research	23 July 2014
Malaysia
Economic Highlights
Business Conditions And Consumer Sentiment Improved In The 2Q The Malaysian Institute of Economic Research’s (MIER) business conditions index (BCI) rose by 9.9 percentage points to 113.0 in 2Q 2014, albeit at a slower rate, after rebounding by 11.1 percentage points in the 1Q. This marked the second straight reading of above the threshold point of 100, following two consecutive quarters of decline, suggesting that businesses have turned more optimistic on the outlook, following the gradual improvement in external demand, due to increased demand from the US and EU. The MIER’s consumer sentiments index (CSI) also edged pass the threshold point of 100 by 3.3 percentage points to 100.1 in 2Q 2014, after rebounding by 14.4 percentage points to 96.8 in 1Q 2014, indicating that consumer confidence improved during the quarter. The survey reported that current household finances were stable and improving, despite deteriorating household income due to inflation caused by upward adjustments in administrative prices. MIER maintained its real GDP at 5.3% in 2014, after taking into account the fiscal consolidation process, tighter monetary policy stance and better-than-expected global market environment. This is broadly in line with our projection of a stronger growth of 5.4% in 2014. Economist:  Peck Boon Soon  | +603 9280 2163 Economist:  Shafizal Shafaai  | +603 9280 2179