Malaysia's economy to accelerate in 2024: expert

Petronas Twin Tower in Kuala Lumpur, Malaysia. (Photo: thesundaily.my)

Kuala Lumpur (VNA) - Malaysia's GDP will expand by 4-5% next year if macroeconomic stability is ensured, said Shan Saeed, global chief economist at Juwai IQI.

According to the expert, Malaysia has a stable and strong economy thanks to solid macroeconomic foundations. The Southeast Asian country's economy is in a growth phase despite the potential impact from a number of global challenges such as geopolitical tensions and rising interest rates in developed countries.

Regarding the local currency ringgit (RM), the expert said the exchange rate will fluctuate between 4.17-4.44 RM per USD based on several factors.

Firstly, the US dollar will weaken in 2024 because the US Federal Reserve plans to lower interest rates to stimulate the economy. This will cause the ringgit to appreciate in 2024, he said.

Secondly, higher oil prices will boost the currency as oil is one of Malaysia's main exports. Thirdly, the tourism industry will support the economy as more tourists visit the country, thereby helping to boost local business and consumption.

Finally, foreign direct investment (FDI) will flow into Malaysia from many different sources such as China, Singapore, Europe and the US. The expert said that FDI is essential for macroeconomic development because it represents the Malaysian Government's efforts to ensure the country's policy stability and growth potential.

Shan held that the Malaysian Government under the leadership of Prime Minister Anwar Ibrahim is trying its best to keep the economic momentum going and this is very important for the macroeconomic outlook. The expert also emphasised that consumption and investment are the main drivers of economic growth. Meanwhile, various sectors, such as manufacturing, construction, real estate, technology and energy are attracting active investment both domestically and internationally./.