KUALA LUMPUR (Feb 26): AmBank Group Research said the Malaysian economy is set to expand favourably in 2018.

In a note today, AmBank Group chief economist and head of research Anthony Dass said December Leading Index (LI), which monitors the economic performance in advance, rose 1.6% year-on-year (y/y) in December from 4.4% y/y in November 2016.

Meanwhile, the coincident index which examines the current economic activity, grew 3.2% y/y while the lagging index rose 3.2% y/y,” he said.              

“We expect the domestic economy to remain healthy in 2018.

“Growth will continue to be supported by domestic activities on the back of improving business and consumer sentiments and exports, namely coming from semiconductors and resource-based activities.

“Hence, we reiterate our 2018 gross domestic product outlook of 5.5%,” he said.