By Tengku Noor Shamsiah Tengku Abdullah
KUALA LUMPUR, Dec 25 – Malaysia’s economy is resilient and optimistic as 2023 comes to an end, according to a chief global economist.
Shan Saeed, Global Chief Economist at Juwai IQI, Malaysia, a leading real estate brokerage firm with operations in 20 countries and more than 30,000 agents, shared his positive outlook for the Malaysian economy in 2024.
In a phone interview with TNS Media, Shan said that Malaysia has a stable and strong economy, supported by solid macroeconomic fundamentals.
He said that the economy is in the growth mode, despite some global challenges that could affect the economic growth, such as geopolitical tensions and rising interest rates in developed countries.
He projected that Malaysia’s GDP would grow by 4 to 5% in 2024, if macroeconomic stability is maintained.
He also gave his forecast for the Ringgit, which he expected to range between 4.17 and 4.44 against the US dollar (USD) in 2024, based on the following factors:
• The USD will weaken during the year, as the US Federal Reserve will lower rates in 2024 to stimulate the US economy. This will make the Ringgit appreciate in 2024, as the USD loses value.
Higher oil prices will boost the local currency, as oil is one of Malaysia’s main exports. Oil prices are expected to vary between $91 and $147 per barrel in 2024.
• Tourism will support the macro-GDP equation, as more tourists visit the country, increasing local businesses and consumption.
• Foreign direct investment (FDI) will flow into the country from various sources, such as China, Singapore, Europe and USA. FDI is crucial for the macroeconomic development, as it shows the government’s efforts in ensuring policy stability and growth potential for the country.
Shan, who is based in Kuala Lumpur, said that the Malaysian government, under the administration of Prime Minister Datuk Seri Anwar Ibrahim, is doing its best to keep the momentum in the economy, which is vital for the macroeconomic outlook.
He emphasized that consumption and investment are key drivers of the GDP equation, and that various sectors, such as manufacturing, construction, real estate, technology, and energy, are attracting positive investment both locally and internationally.
He said that the government is working hard to build confidence in the economy, so that it can overcome the global slowdown and advance in the economic and financial landscape.
He added that the Malaysian economy is ready to outperform many other economies in the next two to three years.
Shan has 22 years of solid financial market experience in the fields of private banking, risk/compliance management, commodity investments, global economy, brand and business strategy.