KUALA LUMPUR: Affin Hwang Capital foresees the escalating US-China trade war to possibly lead to a global recession in 2020, posing downside risks to Malaysia.
“There’s a need for Malaysia’s domestic demand to remain healthy and for the government to accelerate infrastructure spending and (provide) higher allocation for the development expenditure, which are important to cushion the slowdown in exports,“ its chief economist Alan Tan (pix) told a media briefing on the 2H19 market outlook here this morning.
He projected Malaysia’s gross domestic product to grow at 4.5% in 2019 and 2020, and to remain resilient with strong private consumption.
He recommended investors to adopt a defensive stance, targeting the FBM KLCI to hit 1,679 points during year-end.