FW: RHB | Malaysia | Wider Current Account Surplus Expected In 2018

 

 

Economic Research			20 November 2017
Malaysia
Economic Update
Wider Current Account Surplus Expected In 2018   The current account surplus in Malaysia’s balance of payments widened to MYR12.5bn in 3Q17, which was higher than expected, mainly due to a larger surplus in the merchandise trade balance. Given the strong 3Q number, we are revising our 2017 current account surplus higher to MYR33.5bn or 2.5% of GDP, from 1.9% of GDP previously. For 2018, we expect the current account surplus to be sustained at MYR38.7bn, or 2.7% of GDP on account of a wider merchandise trade surplus. This is amid lower imports of production inputs (intermediate goods imports) in line with a normalisation in export growth and a smaller deficit in current transfers. However, this would be partly offset by a higher deficit in the services and income accounts, resulting from sustained growth in exports and economic growth.   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:   20 Nov : Economic Growth Strongest In Three Years 16 Nov : MYR Hits One-Year High Amid Hawkish BNM 13 Nov : Private Investment And a Potential US Corporate Tax Cut’s Impact On Future Growth 09 Nov : BNM Hints at Policy Tightening in 2018 09 Nov : Robust IPI In 3Q Points Towards Stronger GDP Growth
Economics Team
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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