ECONOMY / KEY INFRASTRUCTURE UPDATES
- Following a 3.0% growth posted in 4Q 2023, Malaysia’s full-year GDP normalised to 3.7% (cf. 2022: 8.7%).
- Resilient domestic expenditure, improved inbound tourism and higher investment drove growth in 4Q 2023.
- The Overnight Policy Rate (OPR) stayed at 3.0%, subsequent to the only hike of 25 basis points in May 2023. It is projected to stay status quo throughout 2024, given the steady domestic inflation and growth outlook.
- The Ringgit appreciated 2.1% against the US dollar in 4Q 2023, alongside other regional currencies.
- Inflation averaged 1.6% in 4Q 2023 (cf. 3Q 2023: 2.0%), in line with moderating costs conditions. The inflation outlook is expected to remain modest, and highly subject to changes in domestic policy on subsidies and price controls.
- Foreign Direct Investment (FDI) rose to RM926.3 billion in 4Q 2023 (cf. 3Q 2023: RM914.9 billion).
- The services sector attracted over 50% of the total FDI, followed by manufacturing (42.2%) and mining and quarrying (4.5%), primarily from Singapore, Hong Kong, and the United States.