KUALA LUMPUR, Mar 13 (NNN-BERNAMA) – Moody’s Ratings expected the Malaysian economy to expand five percent this year, largely keeping pace with the 5.1 percent growth last year.
The rating agency said in a note yesterday that, a stable labour market, largely benign inflation, and fiscal transfers will support consumption, despite some risks from a planned fuel subsidy reform.
Meanwhile, the agency said that, government policies, such as the National Energy Transition Roadmap and New Industrial Master Plan, will drive private and public investments.
According to the agency, these policies will also improve the country’s foreign direct investment (FDI) flows, related to shifting regional supply chains and enhancement of Malaysia’s semiconductor manufacturing and data centre capabilities.
“We expect the implementation of these strategies to support credit growth in the next few years,” it said.
It also said that, risks associated with trade tariffs and geopolitical tensions will be mitigated by Malaysia expanding market access, and diversifying trade partners, including deepening economic cooperation with neighbouring Singapore.– NNN-BERNAMA
