KUALA LUMPUR: The current account (CA) surplus surged to RM11.4 billion or 2.3 per cent of gross domestic product (GDP) in 4Q 2024, up from RM2.2 billion (0.4 per cent of GDP) in 3Q 2024, which is the highest in three quarters.
According to Kenanga Investment Bank Bhd
(Kenanga IB), the CA surplus widened slightly for the full year to 1.7 per cent of GDP from 1.5 per cent in 2023.
"The increase was driven by a higher goods surplus and a smaller services deficit, though wider deficits in both primary and secondary income partially offset the gains.
"A slowdown in GDP growth in 4Q 2024 (5.0 per cent year-on-year; 3Q 2024: 5.4 per cent) also contributed to the widening surplus,” said the investment bank in a note.
It said despite Trump’s tariff threats, Malaysia's exports are expected to continue outpacing imports, and strong tourism receipts may push the services account into surplus, supporting the overall CA balance.
"We forecast the CA balance to reach 1.9 per cent of GDP in 2025 compared to 1.7 per cent in 2024,” it said. - Bernama
