Juwai IQI, Global Chief Economist, Shan Saeed – “Juwai IQI is still buoyant on the Malaysian economic outlook for 2024.”
By Tengku Noor Shamsiah Tengku Abdullah
KUALA LUMPUR, Feb 15 – Malaysia is poised to achieve a steady and structured economic growth rate of 4.3 to 4.8% in 2024, despite the global economic slowdown and uncertainty in advanced economies, according to a leading global economist, Shan Saeed.
Shan, the Global Chief Economist of Juwai IQI, a proptech leader that serves and advises clients across 11 cities worldwide, said Malaysia’s economic resilience is driven by its sound infrastructure, productive labour force, and consistent policy framework.
“Malaysia is one of the few economies in the region that has a balanced and diversified economic structure, with a strong domestic demand and a robust export sector,” he told TNS News in a recent telephone interview.
He added that Malaysia is also attracting foreign direct investment (FDI) in various sectors, such as manufacturing, E&E, technology, E-commerce and real estate, as investors seek stable and profitable opportunities in the country.
“Malaysia has a lot of potential to become a regional hub for innovation and digital transformation, as well as a gateway to the ASEAN market,” he said.
Shan, who has 22 years of experience in diverse financial domains, such as private banking, risk and compliance, commodity investments, global economy, branding and business strategy, also shared his views on the global economic outlook and the implications for Malaysia.
He said the US Federal Reserve is likely to cut interest rates more than three times in 2024, as it tries to fend off the recessionary fears and the impact of the trade war with China.
“This will have a positive effect on the emerging markets, as it will ease the pressure on their currencies and debt servicing costs, and stimulate capital inflows,” he said.
Touching on the ringgit, Shan said the Malaysian ringgit is expected to trade between 4.17 and 4.44 against the US dollar in 2024, as it reflects the country’s economic fundamentals and external balances.
“The macroeconomic stability is embedded in the equation so we at Juwai IQI are still buoyant on the Malaysian economic outlook for 2024,” he said.
The ringgit gained against the US dollar at Thursday’s close, as the market awaited the release of the 4Q2023 GDP data on Friday.
At 6pm, the ringgit rose to 4.7800/7850 against the greenback compared to Wednesday’s close of 4.7845/7885.
Shan also said that many advanced economies will face subpar growth, with disinflation and deflation hitting many countries, as they struggle with structural issues, such as ageing populations, low productivity, and high debt levels.
“Malaysia, on the other hand, has a young and dynamic population, a high savings rate, and a manageable debt level, which gives it more room to maneuver and adapt to the changing global environment,” he said.
He also highlighted the role of tourism as a major economic tool to bolster local businesses and consumption, as Malaysia offers a diverse and attractive destination for travelers from around the world.
“Malaysia has a lot to offer, from its rich culture and heritage, to its natural beauty and modern amenities. It is also a safe and friendly country, with a high standard of living and a competitive cost of living,” he said.
He concluded by saying that Malaysia is well-positioned to weather the global economic challenges and seize the opportunities that arise from the digital revolution and the regional integration.
“Malaysia is a beacon of economic stability in a turbulent world, and a model of development and progress for other emerging markets to emulate,” added Shan. – TNS News