Economic Research
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19
April 2017
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Malaysia
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Economic Update
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The MIER’s
business conditions index (BCI) surged by 31.5pts to 112.7 in 1Q17, from 81.2
in 4Q16 and compared with 83.9 in 3Q16. Going forward, we expect private investment growth to hold up, with a growth of 4.6%
in 2017, from +4.4% in 2016, underpinned by:
1.
Ongoing
construction of infrastructure projects;
2.
Rising import of
capital goods on the back of stronger trade activities.
However,
this would partly be offset by the rising cost of doing business due to the
weak currency, amid a still challenging business environment.
In the same
vein, the Malaysian Institute of Economic Research’s (MIER) consumer
sentiment index (CSI) rose by 6.8pts to 76.6 in 1Q17, after dropping 3.8pts
to 69.8 in 4Q16, amid an improved outlook on financial expectations and
employment.
We
expect consumer spending to sustain at 5.7% in 2017, from +6.1% in 2016, on
the back of earlier government measures to boost private consumption
expenditure.
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Wednesday, April 19, 2017
Business Confidence Highest In More Than Two Years
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