KUALA LUMPUR, July 17 – Standard Chartered (Stanchart) has maintained Malaysia’s gross domestic product (GDP) growth for 2024 at 4.8 per cent, aligned with Bank Negara Malaysia’s projection of four to five per cent.
Its head of Managed Investments and Advisory, Malaysia, Ng Shin Seong said this projection, however, has not taken into consideration the future measures on subsidy rationalisation.
“On the fuel subsidy (diesel), we think it is a very targeted approach and the people that needs help will get some help back.
“The subsidy rationalisation (on diesel) will help the government’s fiscal position and we think it is an upside for the country,” he told reporters at its Global Market Outlook Second Half (2H) 2024: Adapting to Shifting Winds media conference on Wednesday.
Meanwhile on the ringgit, Ng said Stanchart is forecasting the ringgit to strengthen to 4.66 level against the US dollar by year-end, backed by the expectation of one to two interest rate cuts in the United States (US).
“We also expect the ringgit to marginally appreciate next year, as we believe the US Federal Reserve (Fed) will continue with its interest rate cuts,” said Ng.
He further said that investors should take note of the shifting winds in Malaysia, as the investment outlook in the country has improved with the FBM KLCI notching a 12.7 per cent rise year-to-date.
“Malaysia attracted record approved investments in 2023 and is emerging as a data centre powerhouse in Southeast Asia,” he said.
