Monetary policy action an option to sustain growth

THE 4.5% year-on-year (y-o-y) second quarter 2018 GDP growth confirmed market’s expectations of not only a slowing Malaysian economy but a sharper than expected pace of decline in overall growth of the economy.

Looking at the data points, the disappointing quarterly GDP numbers were led by the public sector, mainly due to sharp fall of almost 10% y-o-y in public investment, despite sustained growth in the private sector.