Malaysian Central Bank sees Malaysia to grow between 4 pct to 5 pct in 2024
The Malaysian economy is projected to grow between 4 percent and 5 percent in 2024, supported by the resilient domestic demand and improvement in external demand, Malaysian Central Bank said Wednesday.
The Bank Negara Malaysia said in its 2023 Economic and Monetary Review report that tourism is expected to improve further, while the implementation of new and ongoing multi-year projects by both the private and public sectors would support investment activity.
Nevertheless, the bank said domestic growth remains subject to downside risks from both external and domestic factors.
External factors include a weaker-than-expected global growth and further escalation of geopolitical conflict.
Domestically, it said more severe shocks on commodity production and the implementation of subsidy rationalization could also weigh on the growth outlook, although this could be partially offset by targeted cash assistance from the government.
EU firms in China forced to focus on risks over business
European companies in China are overly focused on risk management amid a less predictable and more politicised business environment in the world’s second largest economy, a business lobby group has warned.
The European Union Chamber of Commerce in China said on Wednesday that about three-quarters of respondents to a survey of its 1,700 members had reviewed their supply chains and exposure in China over the past two years amid a “general sentiment of uncertainty”.
Some 21 percent of respondents said they planned to expand their production in China, while another 12 percent planned to reduce it, the chamber said.
Only 1 percent said they planned to move production out of China entirely, according to the survey.
The findings come “at a time when the global business environment is becoming increasingly politicised, and companies are having to make some very tough decisions about how, or in some cases if, they can continue to engage with the Chinese market,” the lobby group said in a report accompanying the survey.
India now more unequal than in Raj era
India has now become more unequal in terms of wealth concentration than the British colonial period as income and wealth of the top 1 percent of the country’s population have hit historical highs, a report by World Inequality Lab shows.
The top 1 percent of the population controlled 40.1 percent of the national wealth in 2022-23, while at the time of independence it was less than 15 percent. The share of these top 1 percent of the population in the national income jumped to 22.6 percent during the financial year 2022…
Conditional foreign loans, debt and development of Bangladesh
Immediately after independence, Bangladesh had to accept foreign aid and loans to rebuild and rehabilitate its war-torn economy, develop its infrastructure, make the key sectors of the economy self-sufficient, and implement various reform programs.
While accepting this assistance – was, is, and will be necessary – it is important to carefully consider and scrutinise the terms and conditions that come with it. It should be based on the needs and benefits to each sector; and action plans should be formulated and implemented with the goal of achieving quick returns through efficient use.
Brunei records positive economic growth of 1.4 per cent
Brunei’s economy in 2023 expanded by 1.4 per cent, which was attributed to an increase in the non-oil and gas sector by 4.5 per cent, according to the latest official report released by the country’s finance ministry.
At current prices, the annual gross domestic product (GDP) in 2023 was valued at 20.3 billion Brunei dollars (US$15 billion) according to the report.
The non-oil and gas sector has been a crucial factor in Brunei’s achievement of positive economic indicators in 2023, said the report from the Department of Economic Planning and Statistics at the Ministry of Finance and Economy of Brunei.
Cambodia’s bold blueprint in real estate recovery
Cambodia’s commercial real estate market, currently in an evolutionary phase, is showing signs of promising growth and innovation despite global economic challenges. As reported by Khmer Times, industry professionals in the Kingdom are offering varied, yet optimistic assessments of the sector’s immediate prospects.
CEO of The Room Architecture & Design Pawel Siudecki sees the current landscape as a canvas for creativity. He suggests the introduction of mixed-use developments tailored to specific market niches could inject much-needed innovation into the sector. This perspective aligns with the views of Jolyda Sou, Managing Director of Prestige Consulting, who notes the sluggishness due to slow construction and excess supply. However, Sou emphasises the underlying trend towards sustainability and cost-efficiency in the commercial real estate market.
Indonesia’s Prabowo Subianto vows to boost economic growth
Indonesia’s presumed next president Prabowo Subianto has said economic growth can accelerate to 8 per cent within five years and vowed to maintain fiscal discipline when he takes the helm of south-east Asia’s largest economy.
Speaking at an investment forum in Jakarta on Tuesday, Prabowo also promised a smooth transition from the current government of Joko Widodo and said his administration would build on the economic foundations laid by his predecessor.
The former military general and current defence minister won nearly 60 per cent of the vote in February’s election, according to unofficial results from sample ballots. Official results are due this month and, if confirmed, Prabowo will be inaugurated as president in October.
Why Japan’s economy remains a warning to others
For most of this century it has looked as if the world’s economy was turning Japanese, with low growth, below-target inflation and rock-bottom interest rates. Today the question is how much Japan will come to look like the rest of the world. On March 19th the Bank of Japan raised interest rates for the first time since 2007, after inflation seemed at last to have become entrenched. Interest on balances held at the bank, previously set at minus 0.1 percent, will now be plus 0.1 percent. The central bank, under its relatively new governor, Ueda Kazuo (pictured), also scrapped its policy of yield-curve control, which capped long-term bond yields at 1 percent. Having kept monetary policy ultra-loose for years, Japan has now begun to follow the course set by other economies since widespread inflation took hold.
The Maldivian economic landscape
With its economic output standing at approximately US$ 7 billion, the Maldives’ economy is highly reliant on imports and is predominantly fuelled by the tourism industry. The forecast for the economy shows sustained growth in 2023 and 2024, with expectations of welcoming 1.8 million tourists in the fiscal year 2023. This vigorous resurgence in tourism is largely due to the resumption of tourism activities from China and the revitalisation of the Russian market.
The construction and real estate sectors are also vital, driven by the demand for infrastructure and luxury real estate, which in turn stimulate growth in various ancillary industries. On the sustainability front, food security remains a critical challenge due to the country’s dependence on imports and limited arable land, necessitating efforts to enhance local agricultural production and sustainable fishing practices. Balancing these sectors, while ensuring environmental sustainability, is crucial for the Maldives’ economic resilience and development. Thus, an exploration of these sectors is necessary to analyse the medium-term trajectory of the Maldives economy.
The Maldives’ GDP is mostly driven by tourism. Although tourist footfalls increased significantly in 2022, they still have not reached pre-pandemic levels. However, with the signing of the FTA and the resurgence of Chinese outbound tourism, Maldives expects the tourist footfall to grow, stimulating economic growth. As flight operations from China continue to restart, a significant increase in tourist arrivals is anticipated to extend into 2024, bolstering the sector.
Google Philippines sees “amazing growth” in the Philippine economy
Giant technology company, Google Philippines, on Tuesday lauded the robust and “amazing growth” of the Philippine economy under the administration of President Ferdinand R. Marcos Jr.
“Our reports reflect a lot of what you mentioned about the growth potential and the amazing growth that we’ve seen in the Philippines,” Google Philippines Country Manager Jackie Wang said.
Wang made the remarks during the question-and-answer portion of the “World Economic Forum” on Tuesday where she asked President Marcos on how he can help in the digitization journey and make “a digital Philippines.”
She said that Google’s own digital economy report reflects a lot of what the President mentioned about the growth potential in the Philippines.
Since 2023, the Philippines’ digital economy is as big as US$23 billion in growth in merchandising value and has a compound “giga growth” of 16 percent, as described by the Google official.
Singapore sees foreign meddling threat
For decades, Singapore marketed itself as one of the world’s most open and globalised economies to compensate for its diminutive territory and lack of natural resources.
Now the Southeast Asian city-state is confronting a new challenge: retaining the magic ingredients of its success while guarding against foreign interference that such openness could invite.
On Monday, Singapore invoked its foreign interference law for the first time by designating Chan Man Ping Philip, a 59-year-old naturalised citizen, as a “politically significant person”, weeks after authorities flagged their intention to designate the businessman.
Singapore’s Ministry of Home Affairs said that Chan, who was born in Hong Kong, had shown “susceptibility to be influenced by foreign actors, and willingness to advance their interests”.
Under the designation, Chan is required to disclose annually political donations of 10,000 Singapore dollars (around $7,400) or more that he receives, foreign affiliations and migration benefits.
While the government did not say which country’s interests Chan allegedly tried to advance in Singapore, the businessman and real estate developer is well-known for advocating China’s perspective.
Sri Lanka’s economy rebounds
Sri Lanka’s economy witnessed a robust recovery in the fourth quarter of 2023 following an unprecedented financial crisis, fueled by a surge in tourism arrivals, the government announced on Saturday.
The census and statistics department reported a notable expansion of 4.5 percent in the December quarter, compared to a significant contraction of 12.4 percent the previous year.
Although the economy contracted by 2.4 percent overall in 2023, it marked a significant improvement from the 7.8 percent decline in 2022, which saw the country defaulting on its $46 billion foreign debt.
Describing the economic trajectory of 2023 as a tale of two halves, the department noted negative growth in the first half, followed by a remarkable rebound in the second half.
The surge in tourism arrivals, reaching 210,000 in December alone, played a pivotal role in driving economic recovery, more than doubling from the previous year’s figures.
Additionally, improved worker remittances contributed to the positive economic outlook. Sri Lanka’s ongoing engagement with the International Monetary Fund for a $2.9 billion bailout loan and negotiations with foreign creditors for debt restructuring underscore the nation’s commitment to stabilizing its economy.