<\/p>\n\n\n\n
KUALA LUMPUR, Dec 3 (Benama) \u2014 Malaysia\u2019s economy is set to\nrecover in 2021, driven by domestic support, although headwinds in 2020\nwill continue to persist next year and weigh on growth expectation. <\/p>\n\n\n\n
In its 2021 market outlook presentation today, MIDF Research\nsaid that the COVID-19 pandemic will remain as the biggest threat to economic\nrecovery, followed by other issues such as rising protectionism,\ngeopolitical tension, political instability and volatility in commodity\nprices.<\/p>\n\n\n\n
\u201cNevertheless, we opine that Malaysia\u2019s economy will be able\nto grow by seven per cent year-on-year (y-o-y) in 2021, which falls in\nbetween Bank Negara Malaysia and Ministry of Finance\u2019s growth target of 6.5 per\ncent to 7.5 per cent,\u201d it said in a briefing Thursday. <\/p>\n\n\n\n
It added that domestic demand is expected to drive economic\nrecovery as economic activities resume and sentiments improve, while private\nconsumption and private investments are expected to rebound next year. <\/p>\n\n\n\n
\u201cBased on September 2020\u2019s data, retail sales — which\nis a proxy to consumption — has managed to record a marginal growth of 1.1 per\ncent y-o-y after six consecutive months of contraction.<\/p>\n\n\n\n
\u201cWe forecast private consumption and investment to expand by\nseven per cent y-o-y and 8.3 per cent y-o-y, respectively, in 2021,\u201d\nit said. <\/p>\n\n\n\n
It added that the government will continue to play important\nroles in pushing the economy further, while global trade is expected to be\non a better footing next year. <\/p>\n\n\n\n
\u201cGradual return in global activities as countries\nemerge from COVID-19 shocks will result in more trade flows next year.<\/p>\n\n\n\n
\u201cThe robust performance of China\u2019s economy added support to\nour expectation as the country is our largest trading partner,\u201d it said. <\/p>\n\n\n\n
The research house also said that growth is to be observed\nin all economic sectors, while expansion is likely to take place starting from\nthe services sector — which is the largest contributor to Malaysia\u2019s\neconomy — right to the construction sector, which has the lowest share\nof the nation\u2019s total gross domestic product. <\/p>\n\n\n\n
\u201cEmployment is expected to pick up. The continued economic\nrecovery as businesses reopen and resume\noperations post-COVID-19 will contribute to further improvement in the\nlabour market,\u201d it said. <\/p>\n\n\n\n
It added that inflationary pressure is largely muted in 2020\ndue to weak demand and government rebates via discounts on electricity\nbills, which will continue until the end of the year.<\/p>\n\n\n\n
\u201cHowever, looking ahead, the rebate is unlikely to\ncontinue. Global crude oil prices are also expected to inch higher next\nyear at an average of US$51 per barrel for Brent crude,\u201d it said. <\/p>\n\n\n\n
It stressed that the rise is due to the cost increase in\nhousing, utilities and transport — the biggest component in\nthe overall consumer price index (CPI) basket after food and\nbeverages. <\/p>\n\n\n\n
\u201cThese factors have a significant impact on overall\ninflation.<\/p>\n\n\n\n
\u201cIn addition, prices for most of the goods will also improve\non the back of returning demand as the economy recovers, also facilitated by a\nlow interest rate environment,\u201d it said. <\/p>\n\n\n\n
— BERNAMA<\/p>\n","protected":false},"excerpt":{"rendered":"
KUALA LUMPUR, Dec 3 (Benama) \u2014 Malaysia\u2019s economy is set to recover in 2021, driven by domestic support, although headwinds in 2020 will continue to persist next year and weigh on growth expectation. In its 2021 market outlook presentation today, MIDF Research said that the COVID-19 pandemic will remain as the biggest threat to economic recovery, followed by […]<\/p>\n","protected":false},"author":29,"featured_media":68053,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[288,300,318],"tags":[],"_links":{"self":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/104333"}],"collection":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=104333"}],"version-history":[{"count":0,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/104333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/media\/68053"}],"wp:attachment":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=104333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=104333"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=104333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}