Malaysia’s 2019 economic growth falls to 10-year low of 4.3 pct

Malaysia's gross domestic production (GDP) grew 4.3 percent year on year in 2019, the slowest pace in 10 years, as lower exports and private consumption weighed on the economy.

Malaysian Central Bank said in a statement on Wednesday that the Malaysian economic growth slowed to 3.6 percent in the fourth quarter in 2019, dragged mainly by supply disruptions in the commodities sector.

For full year, the economic growth also slowed to 4.3 percent, from 4.7 percent in 2018. Amid global trade tensions, the country registered a contraction of 1.1 percent in net exports. Private consumption growth also slowed to 7.6 percent from 8 percent.

For the year as a whole, the bank said, the growth would be supported by household spending, the realisation of approved private investment projects in recent periods, and higher public sector capital spending.

However, it noted the downside risks such as the various trade negotiations and geopolitical risks, as well as domestic factors, including weakness in the commodities sector and delays in project implementation.

Thus, two-way capital flows and exchange rate volatility should be expected, it added.

Source: China ASEAN Business Council