After a moderation to 3.6 percent last year, Malaysia’s growth is projected to accelerate to 4.7 percent in 2024, underpinned by strong domestic demand and a pickup in external demand.
The recent influx of investments into Johor provides a hint of optimism. Johor emerged as the top investment destination in Malaysia in 2022 and came in fourth last year, after Penang, Kuala Lumpur and Selangor.
The increasingly heated struggle between the U.S. and China for dominance in semiconductor technologies has been a godsend for the Malaysian island of Penang.
This paper sheds light on pandemic-related central bank balance sheet tools and ensuing normalization, with a particular focus on ASEAN-4 economies.
The ASEAN region is expected to benefit from a combination of these favorable factors, with growth in 2024 and 2025 forecast at 4.8 and 4.9 percent, respectively while growth in the Plus-3 region is expected to remain robust at 4.3 and 4.1 percent, respectively.
Malaysia’s headline inflation has been moderating in recent months. The pace of consumer price increases has come off steadily from 4.2% in the latter half of 2022 to below 2% since August 2023.
When BNM started raising the OPR in May 2022 to contain inflation, the subsequent sharp increase in the KLIBOR had sparked market concerns about a potential over-tightening in the interbank market.
In just six decades, Malaysia has transformed from a resource-based economy dependent on rubber and tin to a diversified economy .
This paper develops a prototype macroeconomic model for assessing monetary and fiscal policy in a small emerging-market open economy. We then use this model to evaluate the performance of monetary and fiscal policies in Malaysia between 2005 and 2021.
How did Malaysia manage to contain inflation without keeping monetary policy so tight as to stifle growth? The answer lies in a skillful mix of policy measures.
