economic prospects


Economists remain confident with PH government after 100 days

KUALA LUMPUR, Aug 17 — Despite delays in fulfilling its promises, economists remain confident with the Pakatan Harapan (PH) administration led by Prime Minister Tun Dr Mahathir Mohamad who aims for a country which is corruption-free and…

Euro-area growth unexpectedly gathers pace as risks persist

LONDON, June 22 — Economic momentum in the euro area unexpectedly picked up in June, suggesting the 19-nation bloc is starting to recover from a temporary soft patch just as risks to the outlook increase. Private-sector growth also gathered pace…

Chinese stocks extend slump as authorities appeal for calm

SHANGHAI, June 20 — Chinese stocks fell, extending yesterday’s plunge, despite efforts by the government to soothe nerves rattled by the threat of additional tariffs. The Shanghai Composite Index slid as much as 0.9 per cent to a two-year low….

Most South-east Asia stocks slump, Malaysia extends losses amid economic uncertainty

SINGAPORE, May 23 — Most South-east Asian stock markets fell sharply today as US President Donald Trump tempered optimism over trade talks between Washington and Beijing, with Malaysia extending losses amid uncertainty over the size of debt its…

US-China trade tariffs truce boosts Malaysia’s economic outlook

PETALING JAYA: With a key risk averted as world economic powerhouses the US and China called a truce on trade tensions, the economic prospects of Malaysia are looking up with gross domestic product (GDP) growth expected to go up to 6% this year.

US Treasury Secretary Steven Mnuchin announced on Sunday that the trade war between the two of the world's largest economies will be put on hold after a turf war of sorts in relation to the imposition of tariffs and the reduction of America's trade deficit with China by US$200 billion (RM796 billion).

However, it is not known whether a full-fledged trade war has been nipped in the bud or that the truce between the two of the world's largest economies is temporary, as talks between the two are reportedly still in progress.

Sunway University Business School Professor of Economics Dr Yeah Kim Leng told SunBiz that with the truce, a key risk to the economy has abated, and it would spell well for Malaysia as its trade and currency are strongly tied to the Chinese and US economies.

A favourable external environment coupled with increase in private consumption on the domestic front due to the impending abolishment of the Goods and Services Tax (GST), he said, will further lift growth prospects for the country.

“We may see GDP (gross dometic product) growth for this year shifting towards the upper end of the 5.5%-6.0% range, especially if capital investment this year is not derailed by the ongoing review of mega infrastructure projects,” he said.

“The truce will enable negotiations to proceed more productively to find amicable solutions in plugging the huge trade imbalance between the two countries. However, if no tangible results are reached, we may see a resurrection of the trade dispute,” Yeah cautioned.

Last week, Bank Negara Malaysia announced that Malaysia's GDP grew 5.4% in the first quarter of the year.

Senior research fellow at the Malaysian Institute of Economic Research Dr Shankaran Nambiar said the escalating tensions between the US and China may not have translated into a cutdown of orders from Malaysian companies.

Noting that while the tension has been averted at least for now, he said Malaysia would have been negatively impacted had this dispute been blown into a full-fledged trade war.

Shankaran projects Malaysia's GDP to outperform by growing by 5.7-5.9% assuming that the policies of the newly minted government work out well.

Meanwhile, on the ringgit, Yeah said the local unit is expected to hover between RM3.80 and RM3.90 to one US dollar by year-end.

“A stable ringgit will be favourable for the Malaysian economy, especially during the current phase of fiscal and structural adjustments,” he noted.

Asian stocks up on US-China thaw, Malaysian shares bounce, ringgit falls

SYDNEY, May 14 — Asian shares shot up to near two-month highs today on signs the United States and China were toning down their trade war rhetoric, while the ringgit hit a four-month trough in the first onshore trade since a shock election result…

GE14 outcome reflects growing political maturity: Aberdeen CEO

KUALA LUMPUR: The outcome of Malaysia’s 14th general election reflects a growing level of political maturity and respect for democracy that would be beneficial for the country’s appeal to foreign investors and economic prospects over the medium to longer term.

In a statement issued today, Aberdeen Standard Investments Malaysia CEO Gerald Ambrose said this is a new political dawn for Malaysia, which sees the first ever change of government since the country gained independence from the British in 1957.

“This was a stunning election outcome that few would have predicted. We would expect some market volatility from the election result and possibly some spillover impact on investments,” he said.

Ambrose said it is likely that the larger companies, many of which are government linked, will bear the brunt of any index-linked selling which may take place in the near term.

“More broadly, some of Pakatan Harapan’s election pledges may have diverging impacts on the share prices of specific sectors over the short term,” he said.

Pakatan Harapan’s intention to review all mega infrastructure projects may lead to some initial selling in the construction and cement sectors, while its agenda to mitigate high living costs may enhance consumer sector stocks, such as food manufacturers, consumer staples and retail plays,” Ambrose added. – Bernama

Eight years on, eight big questions still looming for Greece

NEW YORK, May 7 — On the eighth anniversary of the euro-area’s biggest bailout, Greece is closer than ever to breaking free from its creditors’ oversight and trying its luck raising money on its own. But, as August 20 — its exit day —…

IMF sees emerging Asia as top global growth engine

BEIJING, April 17 — The IMF said today it remains upbeat about the economic prospects of emerging Asia, labelling the region “the most important engine of global growth” despite concerns over trade disputes and mounting debt. The…

Investors wary of Europe’s stimulus status

Fundamental outlook THE European Central Bank (ECB) has retained its monetary stance but investors are worried about the region’s economic prospects as the central bank dials back its monetary stimulus pledge. The US payroll grew beyond forecast, signalling a possible rate hike soon. China regained its consumer inflation growth. The US ISM services index grew […]