KUALA LUMPUR: HSBC Private Banking has forecast Malaysia’s gross domestic product growth to stay firm at 4.5% in 2019 and 4.3% in 2020, as private consumption is going to remain robust despite a more uncertain global trade environment.
HSBC Private Banking chief market strategist for Southeast Asia James Cheo said Malaysia’s economy is expected to stay resilient, driven by strong consumer spending and a diversified export base. The resilience of consumer spending is a reflection of a relatively tight labour market and steady wage growth.
“Malaysia is more resilient than what most people think. To sum it up, the Malaysia economy still ‘boleh’ (can),“ he told a press conference on the HSBC Private Banking 2019 2H Investment Outlook in Asia here this morning.
“We expect private consumption to remain one of the key drivers of growth for the remainder of the year, driven by a stable labour market and supportive fiscal and monetary policy.”
HSBC Private Banking expects Bank Negara Malaysia not to deliver further rate cuts this year and predicts the next cut only in 2020.