KUALA LUMPUR (Nov 18): RHB Investment Bank Bhd has maintained its gross domestic product (GDP) growth forecast for Malaysia at 4.3% for 2020 and 4.5% for 2019 as it continues to see downside risks arising from the protracted global trade.
In a note today, RHB’s economist Ahmad Nazmi Idrus said Malaysia’s real GDP growth moderated to 4.4% year-on-year in 3Q19 as domestic demand softened, dragged by private consumption and a larger contraction in investment.
He said data showed across-the-board moderation during the quarter – a reflection of weak exports and investments, which have also seeped into the domestic economy.
Ahmad Nazmi added that investment contracted by 3.7% (2Q19: -0.6%) following a sharp drop in private investment of 14.1% (2Q19: -9%) whereas public investment softened to 0.3% (2Q19: 1.4%).
“Meanwhile, by type of investments, both structures as well as machinery & equipment recorded a larger contraction. Only “other assets” recorded positive growth,” he said.