The current improve in the international economic development forecast for this yr is expected to have a constructive influence on Malaysia’s trade efficiency, in accordance with Investment, Trade, and Industry Minister, Tengku Zafrul Abdul Aziz. Limited has elevated its international progress projections to 2.1% in 2023, up from the 1.7% predicted in January. Additionally, the expansion forecasts for the United States and China, Malaysia’s largest buying and selling partners, have been raised to 1.1% and 5.6% respectively.
Malaysia’s gross domestic product (GDP) growth has also been revised upwards by zero.three share points every, to four.3% in 2023 and four.2% in 2024. The Organisation for Economic Cooperation and Development (OECD) has also raised its progress outlook for the world economic system to 2.7% from 2.6%, citing easing inflation and the lifting of China’s Covid-19 restrictions, but warned of a long road ahead to realize robust progress.
“This upward revision should be constructive for countries like Malaysia, whereby commerce performs a serious function within the economy. What we’ve seen is that the expansion, commerce is still positive, but in comparability with final 12 months, there is a moderation in development,” Tengku Zafrul advised Bernama.
Trade presently accounts for round 140% of Malaysia’s GDP. The World Trade Organisation has predicted a decrease trade progress fee of 1.7% this 12 months, in comparison with 2.7% final yr, before rebounding to three.2% in 2024.
Despite the volatility in the currency market, Tengku Zafrul remains confident that Malaysia won’t experience a trade deficit. He attributes this optimism to robust exports from the electrical and electronics (E&E) sector, which contributes approximately 6% to the country’s GDP.
“The sector continues to see strong world demand and we stand to benefit from this, and we stand to learn from the realignment of the availability chain to Malaysia given the worldwide geopolitical scene,” he noted..