Malaysia's headline inflation to stay at 2.0-3.5% in 2023

KUALA LUMPUR: Malaysia's headline inflation is likely to stay between 2.0 per cent and 3.5 per cent in 2023 on the back of a strong economic recovery following the COVID-19 pandemic, according to Manulife Investment Management.

Its head of macro strategy for Asia Sue Trinh said inflation was much lower in Malaysia compared to in many parts of the world, especially the emerging markets, due to generous subsidies from the government amounting to about 3.0 per cent of the gross domestic product (GDP).