KUALA LUMPUR (Dec 12): RHB Research Institute Sdn Bhd expects the Malaysian economy to grow at a slower pace of 4.8% in 2018 and 4.6% for 2019 (2017: +5.9%), as the global environment turns more challenging amidst rising trade protectionism and interest rates.

In an economic update today, the research house said Malaysia's October Industrial Production Index (IPI) growth picked up to its third-strongest level this year.

The IPI rose 4.2% year-on-year in October, up from the 2.3% expansion in the previous month.

RHB Research said this was mainly on stronger growth in manufacturing activity and a rebound in mining output.

"Overall, industrial activities should recover somewhat in 4Q18 on a recovery in export growth," it said.