KUALA LUMPUR (Feb 25): AMMB Holdings Bhd and AmBank (M) Bhd's new chief executive officer Datuk Sulaiman Mohd Tahir believes that there are still 'sweet spots' in the Malaysian economy, despite a less than rosy economic outlook.

In a statement today in conjunction with taking office, Sulaiman said Malaysia has a complementary strategy of monetary and fiscal policies, which will mitigate global growth in 2016 forecast to be moderate, compounded by decreasing oil prices, China's economic slowdown and rising cost of living.

In addition, early indicators point to a growth rate of 4.5% for Malaysia, suggesting growth potential in certain industries, he said.

"I feel that the Malaysian economy still has 'sweet spots' that discerning investors and businesses can tap onto. Our nation has a complementary strategy of monetary and fiscal policies, such as attractive interest rates," he said.

"Last month, Bank Negara Malaysia reduced the statutory reserve requirement ratio from 4% to 3.5%. Additionally, the Government has lined out measures under Budget 2016 to address the rising cost of living. Combined with proactive business and investment policies, all these tangible measures are designed to support demand," he added.

Investment levels in 2015 lend support to this. In the first half of 2015, realised investments was RM57 billion. As at end-September 2015, net foreign direct investments amounted to RM27 billion.

As investors look to other opportunities outside China, the improving economies in the Southeast Asian region are expected to draw positive attention. Malaysia, with its fairly resilient economy, stands out.

The property sector too has pockets of growth, especially where participation from the private sector, corporates and foreign direct investment is strong. This includes the mega infrastructure projects in the Klang Valley as well as projects surrounding the High Speed Rail and the Malaysia-Singapore Rapid Transit System.

"With a weaker ringgit, we will probably witness an influx of Singapore residents and MNCs (multinational corporations) wanting to expand or relocate to Johor to take advantage of the lower cost of prime property in Johor Bahru," Sulaiman said.

Sulaiman said while some may see the depreciating ringgit as a cause for concern, there are benefits to a weaker valuation.

"Take the tourism industry and tourism-related industries, such as the food and beverage (F&B) sector, for example. These areas should certainly see a boost in numbers. Tourist arrivals are projected to be around 30.5 million with airport flight traffic projected to grow by 3% this year. Tourism is expected to be boosted further with the recent waiver of visa for Chinese tourists, which was announced in the recalibrated Budget 2016.

"Being Malaysians, we must appreciate the fact that Malaysia continues to be competitive in terms of infrastructure, cost, lending rates and a healthy labour market with a highly educated workforce — relative to most of our competitors. Despite the challenges, there are still opportunities out there, it is certainly not all gloom that awaits us this year," he said.