Monday, February 12, 2018

FW: RHB | Malaysia | 4Q17 Economic Activity Remains Healthy Despite Slowdown

 

 

Economic Research

12 February 2018

Malaysia

 

Economic Update

 

 

 

4Q17 Economic Activity Remains Healthy Despite Slowdown

 

Malaysia‘s industrial activities eased in Dec 2017 to its slowest pace in 20 months. The slowdown was mainly due to a decline in mining output, while manufacturing activity decelerated during the month. The Industrial Production Index (IPI) grew by a slower pace of 3.7% YoY in 4Q17, from +5.8% in 3Q. This suggests that 4Q17’s real GDP could have slowed to around 5.6% YoY, from +6.2% in the previous quarter. As a result, the full-year growth would likely surpass our estimate of 5.6% YoY slightly, to record a growth of 5.8% YoY. Looking forward, we are keeping our real GDP forecast for 2018 and expect the country to chart a more moderate growth of 5.2% during the year. This is on the back of slower export growth after a surge in 2017 and a slowdown in public spending, in line with the Government’s fiscal consolidation drive. However, real GDP growth would remain supported by resilient domestic demand, backed by relatively strong consumer spending and private investments during the year.

 

Economists:

Vincent Loo Yeong Hong  | +603 9280 2172

Aris Nazman Maslan  | +603 9280 2184

 

 

 

To access our recent reports please click on the links below:

 

08 Feb: Exports ease in december but cap a robust year

02 Feb: M3 And Loans Growth Looks To Accelerate In 2018

26 Jan: BNM Raises Rates Amid Strong Economic Activity

24 Jan : 2017 Inflation – Highest In Nine Years

23 Jan : Consumer Confidence Strongest In Three Years

11 Jan : Stronger Manufacturing Activity Lifts IPI in November

 

Economics Team

Arup Raha

Group Chief Economist

arup.raha@rhbgroup.com

+65 6232 3896

Peck Boon Soon

Chief ASEAN Economist

bspeck@rhbgroup.com

+603 9280 2163

Vincent Loo Yeong Hong

Malaysia, Vietnam,

vincent.loo@rhgroup.com

+603 9280 2172

Ng Kee Chou

Singapore, Thailand

ng.kee.chou@rhbgroup.com

+603 9280 2179

Rizki Fajar

Indonesia, Philippines

rizki.fajar@rhbgroup.com

+6221 2970 7065

Aris Nazman Maslan

Malaysia, Vietnam

mohd.aris.nazman@rhbgroup.com

+603 9280 2184

 

 

 

 

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