This article first appeared in The Edge Financial Daily on May 17, 2019

KUALA LUMPUR: Malaysia has been able to maintain its growth during the first quarter of 2019 (1Q19) due to the country’s strong economic fundamentals and diversified sources of growth, said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.

He said this was despite the country facing external headwinds such as the continued US-China trade tension, global monetary policy uncertainties and a slowdown in Asia’s economic growth.

Bank Negara Malaysia earlier yesterday said Malaysia’s 1Q economic growth grew at 4.5% compared with 4.7% in 4Q18.

In a statement, Mohamed Azmin said revisions on global growth forecast are expected to affect Malaysia’s economic growth. The lower projections were made to take into account the trade policy responses of the US and China as well as the risk of rising world oil prices following the anticipated outbreak of crude supply, he said.

“As such, the Malaysian government will focus on enhancing domestic economic activity by encouraging the private sector to continue driving investment.

“The government has also taken steps to accelerate investment activities through the resumption of previously deferred projects, such as Bandar Malaysia and the East Coast Rail Link,” he said.

He added that Malaysia’s participation in the “Belt and Road Initiative” is expected to have a significant impact on the economy through increased foreign direct investment and connectivity with the world economy. Malaysia has the potential to become a gateway to regional markets of more than 650 million people whose purchasing power is on the rise, he said.