In a note on Monday, TA Securities Research said it expects the Malaysian economy to grow at a more robust Gross Domestic Product (GDP) growth trajectory of 5.0% in 2024. The research house believes this optimistic outlook is driven by the expectation of a sustained global economic recovery, particularly in China, which is poised to drive heightened external demand.

Malaysia’s real GDP increased by 3.3% year-on-year (y-o-y) in the third quarter of 2023, according to TA Securities. The research house said the growth came above its revised expectations during the GDP preview and the 3.2% median forecast of analysts polled by Bloomberg. This suggests that Malaysia’s economy is performing better than expected and could lead to a greater influx of capital and portfolio investments.

The Malaysian government’s unwavering commitment to pro-growth initiatives is expected to persist, further supported by increased political stability, said TA Securities. This could bolster confidence among foreign investors, potentially resulting in a greater influx of capital and portfolio investments.

At present, TA Securities maintains its 4.6% y-o-y growth projection for the fourth quarter, aligning with an updated annual growth target of 4.0%. However, it acknowledges that there is still some uncertainty around these projections and that any significant setbacks could result in adjustments being made periodically. Nonetheless, the research house remains optimistic about Malaysia’s economic trajectory and expects continued growth in the coming years.