KUALA LUMPUR, Oct 20 — RHB Research is positive about Malaysia’s gross domestic product (GDP), the ringgit, and the local bourse’s performance while seeing elevated consumer price index (CPI) price pressures following Budget 2024’s tabling.
In a note today, it said the projection of Malaysia’s GDP growth at 4.6 per cent with upside risks is maintained, expecting the Kuala Lumpur Composite Index (KLCI) and the ringgit to strengthen in the coming year.
“For headline inflation, we expect the CPI to rise to 3.3 per cent (from the previous projection of 2.7 per cent), following the subsidy reforms and higher services tax,” RHB Research said.
It added that China’s improving economy is expected to benefit many regional economies, with very early signs of recovery reinforced by the recent pickup in its growth momentum.
“We upgraded our China GDP growth expectations to five per cent, from 4.0 per cent previously, based on three key catalysts, which include China’s high-frequency data gaining momentum in the recent readings, supporting its headline growth.
“Secondly, China’s consumption of key commodities, an early proxy of its economic backdrop, has picked up quarter-to-date. Thirdly, China’s labour market has a relatively tighter unemployment rate at 5.0 per cent in September, suggesting a relatively rosier business/industrial backdrop,” RHB Research said.
Meanwhile, MIDF Amanah Investment Bank Bhd also reiterated its expectation of a better external trade performance for Malaysia next year as regional economies benefit from China’s better economic numbers.
— Bernama
