KUALA LUMPUR: CIMB Research has revised its gross domestic product (GDP) forecast for this year upward to 4.4% from 4.1 % previously, supported by continued growth momentum in the services and construction sectors but balanced by moderation in manufacturing.
The research house said in a note that the advanced estimate for the fourth quarter growth last year (4Q25) surprised again, showing a year-on-year (y-o-y) increase of 5.7%, leading to overall growth of 4.9% for the full year.
“We expect the strong momentum in the services sector to be carried into this year on the back of the second round of a salary hike for civil servants, the February disbursement of Sumbangan Asas Rahmah aid, as well as the Visit Malaysia Year.
“This will likely be tempered by a slowdown in the manufacturing sector as demand for exports, particularly in non-electric and electronics categories, weakens, leading to average GDP growth of 4.4% this year,” it said. — Bernama
