Fresh Fiscal Stimulus On the Cards?

Economic Research	18 August 2016
Malaysia
Economic Highlights
Fresh Fiscal Stimulus On the Cards? In view of the slowing local and global economies, the Government is said to be mulling the possibility of introducing a new fiscal stimulus programme to spur economic growth. The move to transfer its debt and lower the debt-to GDP ratio will provide the Government room to manoeuvre. However, we believe a launch of a stimulus spending will only be carried out, if economic growth slows more significantly in the months ahead, which is not our base case scenario at this juncture. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist: Aris Nazman Maslan | +603 9280 2184
To access our recent reports please click on the links below: 15 August :  Current Account Surplus Narrows Further In 2Q Amid Lower Merchandise Surplus 12 August  : Slowdown in GDP Growth Continues in 2Q Despite Stronger Domestic Demand 12 August  :June’s Industrial Production The Strongest In 11 months But Sharp Drop in Agricultural Output Point To Weaker GDP Growth in 2Q 08 August : Foreign Exchange Reserves Increased Marginally in July 05 August  :Exports Bounced Back in June On Improvement in Manufactured Exports 01 August  :Slowdown in Loan Growth Continues, Whilst Money Supply Eased in June