TA Securities Research has forecasted a more robust Gross Domestic Product (GDP) growth trajectory of 5.0% in 2024, driven by the expectation of a sustained global economic recovery, particularly in China. This optimistic outlook is based on the research house’s analysis that Malaysia’s real GDP increased by 3.3% year-on-year (y-o-y) in the third quarter of 2023, exceeding its revised expectations during the GDP preview and the median forecast of analysts polled by Bloomberg.
The Malaysian government’s unwavering commitment to pro-growth initiatives is expected to persist, further supported by increased political stability. TA Securities said this will have the potential to bolster confidence among foreign investors, potentially resulting in a greater influx of capital and portfolio investments.
In their earlier GDP preview report, TA Securities anticipated the possibility of growth dipping below 4.0%, citing a weaker third-quarter growth as a possibility. However, it outperformed, with an updated annual growth target of 4.0%. Nevertheless, the research house remains vigilant and open to adjustments, which will be made periodically in response to any significant setbacks in Malaysia’s economic trajectory.