KUALA LUMPUR (Feb 14): The Malaysian economy is expected to see a positive growth moving into 2019, after registering gross domestic product (GDP) growth of 4.7% in both the fourth quarter of 2018 (4Q18) and full year of 2018.
The 4.7% economic growth is also in line with Bloomberg's consensus.
"I don't think that there will be a global crisis," said Bank Negara Malaysia (BNM) governor Datuk Nor Shamsiah Mohd Yunus in a release of the Malaysian Economic Performance in the Fourth Quarter of 2018 report, noting that there was a normalisation of global growth in 2018.
She added that the global growth is reverting to a long-term trajectory, and the positive growth anticipated next year will be on the back of the resilience of private consumption and continuation of civil engineering projects as well as the recovery from the supply side shocks.
On the ringgit performance, Nor Shamsiah is expecting the ringgit to see bouts of volatility, but it will still move in line with the regional currencies.
"The ringgit will be impacted by the global developments and it will move in line with what will happen with the regional currencies. So, there will be bouts of volatility and that is why it's very important for us to ensure that both businesses and financial institutions are able to manage these bouts of volatility," she said.
Source: The Edge Market