PUTRAJAYA: The World Bank expects Malaysia’s economy to grow slower at 4.6% in 2019 from the earlier projection of 4.7%, due to weaker-than-expected investment and export activity in the first quarter.
Given Malaysia’s deep financial and trade integration with the global economy, unresolved trade tensions, heightened protectionist tendencies among major economies, a sharper-than-expected slowdown in larger economies, as well as volatility in financial and commodity markets pose risks to growth in the near term, according to the 20th edition of the World Bank’s Malaysia Economic Monitor launched this morning.
With an uncertain external environment and subdued business confidence, policy actions should aim to strengthen fiscal buffers, facilitate private investment and ensure adequate social protection for lower-income households, the report said.
In the medium term, bold reforms and measures are needed, particularly to boost human capital and to increase the level of public sector revenues.
