Domestic demand to grow by 4.8% next year

  • Economy
  • Saturday, 03 Nov 2018

DOMESTIC demand is expected to grow by 4.8% in 2019 after registering a 5% rise this year, driven by private sector expenditure that is slotted to rise by 6.4% next year and 6.5% in 2018.

Public sector expenditure is expected to decline by 0.9% in 2019 after growing marginally by 0.1% this year mainly due to lower consumption by public corporations.

From the private side, consumption will remain the major growth driver with higher household earnings, from better employment prospects, the implementation of the higher minimum wage, steady commodity prices and accommodative financing conditions.

Major conferences and promotional activities ahead of Visit Malaysia 2020 are expected to spur spending. In 2019, private investment is projected to grow by 5% attributed to capital spending in technology-intensive manufacturing and services sectors.

As Malaysia moves towards Industrial Revolution 4.0, investments in the Internet of Things, software, advanced electronics, smart machinery, automation and robotics, automated guided vehicles, aerospace and medical devices are expected to increase.

Public consumption is expected to rise by 1.8% in 2019 on account of higher spending on emoluments as well as supplies and services. Public investment is projected to fall by 1.5% and 5.4% this and next year, respectively from lower capital spending by public corporations.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Business , domestic demand , economic report , 2019


Next In Business News

Alliance Bank wins in innovative financing solutions
Hibiscus eyes aggressive growth
Cost of funds rising?
Economy on stable footing
Requirements for LEAP to ACE Market jump tweaked
Favourable prospects
Elon Musk wants to pause AI? It’s too late
Crypto gets red carpet in Paris and red flags
Swiss bankers forgot they’re meant to be boring
CEOs build resilience amid challenges

Others Also Read