KUALA LUMPUR (March 25): Malaysia’s gross domestic product is forecast to grow 4.7% and 5% respectively in 2015 and 2016, from 6% in 2014, according to the Asian Development Bank’s (ADB) Asian Development Outlook 2015 (ADO).
In the report released March 24, the ADB said Malaysia will see growth this year more subdued than last.
 
Meanwhile, the report said Malaysia’s inflation level would be at 3.2% this year and 2.9% in 2016, compared to 3.1% in 2014.
 
On teh region, the ADB said developing Asia will maintain its strong economic growth in 2015 and 2016 supported by soft commodity prices and recovery in the major industrial economies.
 
The ADB forecasts developing Asia will achieve gross domestic product (GDP) growth of 6.3% in both 2015 and 2016.
 
It said the region also grew 6.3% in 2014.
 
ADB’s chief economist Wei Shang-Jin said developing Asia was making a strong contribution to global economic growth.
 
“Falling commodity prices are creating space for policy makers across the region to cut costly fuel subsidies or initiate other structural reforms.
 
“This is a key opportunity to build frameworks that will support more inclusive and sustainable growth in the longer term,” he said.
 
The ADB said India was forecast to overtake China in terms of growth as the initial phase of government efforts to remove structural bottlenecks was lifting investor confidence.
 
The ADB said with the support of stronger external demand, India is set to expand by 7.8% in FY2015 (ending 31 March 2016), a sharp rise from 7.4% growth in FY2014.
 
“This momentum is expected to build to 8.2% growth in FY2016, aided by expected easing of monetary policy and a pickup in capital expenditure,” it said.