However, Fitch said the forecast is subject toupside risk from possible policy changes on price controls and subsidies and arenewed momentum in global commodity prices.
It added after raising rates by 100 basis points in2022, Bank Negara Malaysia left the policy rate unchanged at 2.75% in January2023 and signalled that further normalisation would balance the risks toinflation and growth outlook.
Malaysia generated current account surpluses formore than two decades and Fitch expects it to continue to do so in the mediumterm.
Fitch forecasted the current account surplus towiden to 3.2% of gross domestic product (GDP) in 2023, driven by higherservices exports, from 2.6% of GDP in 2022.
The firm acknowledged Malaysia is well-positionedfor foreign direct investment inflows, with the manufacturing sector being thelargest recipient. Its strong manufacturing ecosystem will continue to attractinvestment in the sector, although competition is increasing from othercountries in the region.
It said moderate interest-rate hikes and a robust economy should keep credit impairments manageable (non-performing loans/total gross loans at 1.7% at the end of 2022. Banks' earnings prospects are stable and credit costs continue to normalise, but remain above pre-pandemic levels, it added./.
Malaysia's Ministry of International Trade and Industry (Miti) said the country is taking steps to strengthen its position through various policy measures, leveraging the existing electric vehicles (EV) ecosystem and ensuring a solid talent pipeline to help the development of the EV industry.
The Republic of Korea (RoK), China and Japan agreed on May 3 to reinforce the regional financial safety net, along with members of the Association of Southeast Asian Nations (ASEAN), by launching a new financing facility programme meant to extend greater support in case of a financial crisis.
A technical issue combined with an extreme heatwave was blamed for a series of explosions at a military base that killed 20 soldiers and injured several others in Cambodia on April 27, the country’s Ministry of Defence said in a May 2 statement as reported by the Xinhua news agency.
The Customs Department of Thailand is scheduled to commence the collection of value-added tax (VAT) on imported goods sent via postal services, regardless of the goods value, starting in May.
A lecturer from Chulalongkorn University’s Faculty of Medicine has warned Thais to be more vigilant against COVID-19, saying infection rates appeare to be worsening with higher hospital admissions, deaths and severe cases.
Malaysia should harness the collective expertise and resources to drive sustainable growth and development of the halal industry, according to Minister of Investment, Trade and Industry Zafrul Abdul Aziz.
Laos has officially restored the 10% value-added tax (VAT) rate starting May 1, in a bid to support the country’s budget revenue and socio-economic development.
The ASEAN Future Forum 2024 (AFF 2024) entered its second plenary session in Hanoi on the afternoon of April 23, discussing ways to ensure comprehensive security for the people-centred ASEAN Community.
The first session of the ASEAN Future Forum 2024 (AFF 2024) in Hanoi on April 23 focused on fast and sustainable growth for the Association of Southeast Asian Nations (ASEAN).
The Canada-ASEAN Business Council (CABC) and the ASEAN Alliance on Carbon Markets (AACM) have signed a Memorandum of Understanding (MoU) to strengthen collaboration and accelerate the implementation of carbon crediting programmes across Southeast Asia.
ASEAN Secretary-General Kao Kim Hourn reaffirmed ASEAN leaders' commitment to empowering the youth to unleash their full potential when he had a dialogue with ASEAN youth in Hanoi on April 22 on the sidelines of the ASEAN Future Forum (AF 2024).
The Thai Government is being urged to increase the proportion of renewable power generation to more than the target of 50% set in the power development plan (PDP).
The Centre for Volcanology and Geological Hazard Mitigation (PVMBG) of Indonesia on April 21 lifted its tsunami advisory issued previously following the eruption of Mount Ruang in Sitaro district of North Sulawesi province.
Thailand expects to export about 1 million tonnes of durian, valued at an estimated 130 billion THB (3.53 billion USD) this year, with most of the shipments to China, according to Minister of Agriculture Thammanat Prompao.
The 72nd meeting of the ASEAN Working Group on Intellectual Property Cooperation (AWGIPC) and related meetings are being held by the Ministry of Science and Technology’s Intellectual Property Office (IPO) of Vietnam in the central city of Da Nang on April 22-26.
Enhancing regional food security and tackling the pressing challenges of climate change will be key agendas defining Malaysia’s ASEAN Chairmanship in 2025, Speaker of the Dewan Rakyat (lower house) Johari Abdul told the press on April 19.
Malaysia's inflation to stay low in 2023 (Photo:nst.com)
