23.03.201712:00:00UTC+00Malaysia's Economy Likely to Expand at a Faster Pace in 2017 - Bank Negara

Bank Negara Malaysia (BNM) in its annual report released on Thursday said that it expects Malaysia's economy to expand at a faster pace in 2017 on account of recovery in global commodity prices and the continued growth of domestic demand.

BNM projects 2017 to register sustained growth of 4.3-4.8 percent. The country's economic growth slowed to 4.2 percent in 2016 from 5 percent in 2016. Headline inflation was forecast to average higher in the range of 3-4.0 percent this year. The bank forecast a current account surplus of 1-2 percent of gross national income for 2017.

The bank expects domestic demand to remain the principal driver of growth, underpinned by private sector activity. Continued wage growth and the increase in disposable income are expected to underpin private consumption growth.

Malaysia’s Prime Minister Najib Razak hinted that Bank Negara Malaysia (BNM) could introduce new liberalization measures which aim to develop the market for FX, bonds and money in the country to meet the demand of market participants and enable local businesses to manage exchange rate exposure in the country”.

Meanwhile, investment growth is expected to remain modest amid cautious business sentiment and continued uncertainty in the economy.