ECONOMY / KEY INFRASTRUCTURE UPDATES​

• Malaysia’s economy grew by 4.2% in 1Q 2024, driven by higher household spending, turnaround in exports, and strong investment activities (cf. 4Q 2023: 2.9%).​
• Bank Negara kept the Overnight Policy Rate (OPR) steady at 3.0%, since 2Q 2023.​
• The OPR is projected to remain unchanged throughout 2024, amid moderating growth and inflation. ​
• Inflation averaged at 1.7% in 1Q 2024 (cf: 4Q 2023: 1.6%), in line with moderating costs conditions.​
• The Malaysian government raised the sales and services tax (SST) rate from 6% to 8%, effective March 1, 2024. This increase applies to several sectors, including finance and leisure.​
• As of February 2024, the East Coast Rail Link (ECRL) is 62.4% completed, with rapid infrastructure work driving progress. ​
• ECRL is targeted for full completion in December 2026 and operations kicking off in January 2027.
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