Malaysia: Firm start to 2018 – Standard Chartered

Analysts at Standard Chartered point out that Malaysia reported firm Q1-2018 GDP growth of 5.4% y/y and the q/q seasonally adjusted growth rate was also decent, at 1.4%, faster than 0.9% in Q4-2017 and in line with the 2017 average.

Key Quotes

“We maintain our 2018 growth forecast of 5.3%.”

“We observed a divergence in performance in the Q1-2018 GDP print, with private consumption being the primary growth driver. Net exports recorded a huge positive contribution owing to a sharp decline in imports (as export growth actually eased versus Q1-2017). Meanwhile, private-sector investment and government expenditure were soft, on lower capital spending and reduced expenditure on supplies and services, respectively.”

“The new government announced the effective removal of the Goods and Services Tax (GST) from 1 June 2018. We therefore see downside risk to our 2018 inflation forecast, but hold off on revising our forecasts pending clarity on the re-introduction of the Sales and Services Tax (SST).”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.