Kenanga sees 5pc GDP for Malaysia
Kenanga Investment Bank Bhd has maintained a Gross Domestic Product forecast of five per cent for Malaysia this year,
underpinned by a recovery in exports and strong domestic demand.
Senior vice president, rconomist, Wan Suhaimie Saidie said growth in the second half of the year was projected at 5.7 per cent versus 4.2 per cent recorded in the first half.
"We see a deficit target of 4.0 per cent for this year and this is on track with the government's forecast as the gradual removal of subsidies has begun and soon a hike in electricity tariffs would be imposed," he told a press conference today.
On inflation, Wan Suhaimie expected the Consumer Price Index to exceed 3.0 per cent next year from 2.1 per cent forecast for this year, in view of the rise in petrol prices and transportation cost.
He also expected the ringgit to remain volatile and to fluctuate between 3.15 and 3.35 against the US dollar, with a year-end target of RM3.17.
"The ringgit is still fundamentally strong and the current account surplus is a comfortable buffer to support the ringgit besides a relatively strong domestic economy," he added.-- Bernama