Malaysia To Record GDP Growth Of Between 4.0-4.5 Pct

KUALA LUMPUR, Jan 20 (Bernama) -- Malaysia is expected to register real gross domestic product (GDP) growth of 4.0-4.5 per cent this year given the country's challenging prospects, both domestic and international, said independent economist, Lee Heng Guie. For the medium term, he said, the prospects would be steady but unspectacular with domestic demand to continue underpin the GDP. "The key driver of growth for Malaysia will be the expansion of trade, services and investment from its participation in the Asean Economic Community, Regional Comprehensive Economic Partnership and Trans-Pacific Partnership Agreement. "Another driver is the firmer domestic demand conditions supported by improved income growth and stable employment, as well as, continued implementation of mega public infrastructure projects," he said in his presentation at the 9th Property Market Outlook 2016 here Wednesday. Nevertheless, Lee said, the downside risk for growth still persisted with exports remained constrained by uneven global and trade growth as well as weak commodity prices. He said oil prices was expected to remain under pressure throughout the year, hovering between US$25-US$35 per barrel, while the rise in crude palm oil price to remain moderate at US$558 (RM2,450) per tonne. For the ringgit, the prospects of higher US interest rate and narrowing interest rate differentials, coupled with risk of further reminbi devaluation and low visibility in global oil prices, would weighed on the currency's movements, he said. He said the ringgit was expected to end the year at 4.00-4.30 against the US dollar. Going forward, Lee said, political stability, strong and credible public institutions and credible policies were crucial to enhance investor confidence as well as maintain economic and financial stability. "The economy and capital market now, compared to 1997-1998, are considerably more open and liberalised. "Policymakers had learned some important lessons from the Asian Financial Crisis to prevent a crisis," he said. -- BERNAMA