World Bank revises up Malaysia GDP growth for next year

Ulrich Zachau, World Bank Country director for Malaysia. World Bank Malaysia Economic Monitor media briefing - macro outlook and update together with a thematic report on how M'sia can move from a middle income country to a middle income society. MOHD SAHAR MISNI/The Star

KUALA LUMPUR: The World Bank expects Malaysia's gross domestic product (GDP) to record 4.5% growth next year and 2017, a revision based on the country's improved trade data.

World Bank Group, South-East Asia, regional director, Dr Ulrich Zachau, said the revision from 4.2% made earlier was in response to new data received that showed an improvement in Malaysia's overall export performance recently, particularly in the electrical and electronics sector.

"Based on the data available, we now forecast a 4.5% growth next year. This is still a robust strong growth performance if we consider the global growth environment that is not favourable.

"As the data come out, we continually adapt and adjust. Possibly if the data come out again more stronger even, it may be adjusted further," he told reporters after the launch of the World Bank's Malaysia Economic Monitor report in Kuala Lumpur on Friday.

The report projected Malaysia's economic growth to remain at 4.7% in 2015, and ease to 4.5% in 2016, an outlook that reflected slowdown in domestic demand in the course of 2015 from tighter fiscal conditions, which were expected to continue in 2016-2017.

Overall, domestic demand was projected to grow, remaining the main driver of growth in the context of soft global demand, the report said.

At the 10th Asia Economic Summit earlier this month, World Bank chief economist for East Asia and Pacific Region, Sudhir Shetty, had predicted Malaysia to record 4.2% growth in 2016 before gradually rising again in 2017.

Shetty was reported as saying that while Malaysia's current policies provided a good base, to navigate the global uncertainties it needed to consider further improving public sector performance, accelerate human capital development and re-engineer economic growth. - Bernama