In 2023, Malaysia's economy will slow.

The Malaysian economy will decelerate in 2023 due to external and local challenges, experts predicted Thursday.

Maybank Investment Bank Research anticipates Malaysia's full-year growth to decrease to 4% in 2023 from 8% in 2022, citing reduction in domestic demand.

The research company predicts slower private consumption growth next year as pent-up spending from full economic reopening evaporates and rising inflation and interest rates affect cost of living and disposable income.

It also predicts slower public consumption growth in keeping with Budget 2023's decreased operational budget allocation.

Slower global economic growth is causing exports and imports to fall, it said.

MIDF Research predicts Malaysia's GDP growth would drop to 4.2% in 2023 due to reduced global demand and external trade.

We expect a slowdown, not a recession, next year. Higher interest rates and inflationary pressure will affect U.S. and EU demand next year, MIDF Research predicted.

According to the research company, Malaysia's real exports growth is forecast to drop to 2.8% from 12.5% in 2022, underpinned by rising services exports due to solid tourism activity.

On the trade of products, it predicts Malaysia would continue to benefit from commodity exports, especially palm oil, petroleum, and LNG, since the average prices of crude palm oil (CPO) and Brent crude oil are expected to be elevated at $794 per tonne and $96 per barrel for next year.

MIDF Research expects consumer spending, tourism, and infrastructure projects to underpin Malaysia's domestic economy.

Malaysia's open economy will be badly impacted by global growth deceleration, according to Affin Hwang Investment Bank, which recently cut its 2023 GDP predictions to 3.7% from 4.7%.

While a global growth slowing would effect Malaysia, a recession is unlikely due to its solid labor market and rapid recovery in tourism-related industries.

It said Malaysia's cost of living may rise if the government doesn't better its fiscal situation and satisfy sovereign rating agencies' worries.

Comments

India's Foreign Exchange Reserves Will Decrease Further

As the Reserve Bank of India continues to defend the rupee against the stronger dollar, a Reuters poll predicts that by the end of 2022, India's shrinking foreign exchange reserves will have fallen to their lowest point in more than two years. In an effort to halt the rupee's slide to a historic low against the dollar, the RBI has decreased its foreign exchange reserves by roughly $100 billion, to $545 billion from a peak of $642 billion a year ago, and more is on the way. By the end of this year, those reserves are anticipated to fall by another $23 billion to $523 billion, according to the median forecast from a Reuters poll of 16 economists conducted on September 26-27. If achieved, that would be the lowest level in more than two years. From $500 to 540 billion was predicted. This suggests that the RBI would keep depleting its foreign exchange reserves at a rate unseen since the global financial crisis of 2008, when they decreased by around 20%. The US Federal Reserve has al...

Ethereum reports that the Merge Upgrade was successful.

Ethereum is a decentralized blockchain technology that enables the execution and verification of smart contracts. Participants can engage in transactions without the requirement for a central authority when using smart contracts. Participants have full ownership and visibility of immutable, verifiable, and securely distributed transaction records. Ethereum accounts send and receive transactions. Senders must sign transactions and pay in Ether for the network to process them. According to Ethereum, the Merge upgrade was successful, and there will be more. The Merge is a significant step toward reducing the amount of power required by the Ethereum blockchain, but other improvements are still in the works. The Ethereum Foundation reports that the final phase of the Paris upgrade was completed at 2:45 p.m. Hong Kong time, bringing an end to the lengthy wait for the Ethereum network upgrade. The Merge will cause the architecture of the second-largest blockchain in the world, with a market v...

$2B In Crypto Stolen From Cross-Chain Bridges This Year: Chainalysis

Cross-chain bridge hacks have accounted for 69% of the total crypto stolen in 2022, amounting to $2 billion in losses, according to a new report. The report comes from blockchain analytics firm Chainalysis on Aug. 2, noting there have been 13 separate token bridge hacks this year — the most recent being the $190 million Nomad Bridge exploit. Q1 2022 was by far the quarter that saw the most amount of crypto stolen since 2021, due mainly to the Ronin Bridge Attack in late March, which saw $624 million in Ether (ETH) and Circle USD (USDC) stolen. Trade With Trustworthy Broker ✅ AssetsFX ✅ Cross-chain bridges, also known as blockchain bridges are designed to transfer cryptocurrencies from one blockchain network to another. Chainalysis explains that while bridge designs vary, users typically deposit their tokens from one chain to the bridge protocol which are then locked into a contract. The user is then issued the equivalent of...

Search This Blog