BANK Negara (BNM) has maintained its forecast for the country’s gross domestic product (GDP) growth this year at between 4% and 5%, said newly appointed governor Abdul Rasheed Ghaffour.

Domestic demand remains resilient and improvements can be seen in the job market, which continue to support consumer spending, he said.

“The tourism sector is recovering well and is expected to keep growing. We see airlines raising flight capacity to meet higher travel demand.

“Lastly, our multi-year infrastructure projects continued to spur economic activity,” he told Bernama in his first exclusive media interview since taking up the post.

Rasheed, whose five-year term as BNM governor began July 1, said a fuller picture of Malaysia’s performance for the first half of 2023 will be unveiled in a few weeks when the Statistics Department releases second-quarter GDP data.

In its Economic and Monetary Review 2022 report released March 29, BNM said the economy is expected to grow between 4% and 5% in 2023, driven mainly by firm domestic demand amid challenges from slowing global growth.

“In tandem with more subdued global trade activity, as similarly observed in other economies, gross exports are expected to expand modestly at 1.5% in 2023,” it said.

But further recovery in inbound tourism and moderation in import growth would continue to support net export growth, the central bank said. 

In the first quarter of 2023, Malaysia recorded a better-than-expected growth of 5.6%, driven by private sector expenditure amid further expansion of household spending, continued investment activity, improving labour market and intensified tourism activities.

Last year, Malaysia recorded a moderate GDP growth of 8.7% against the full relaxation of Covid-19 containment measures, resilient export growth, tourism sector revival, and continued policy support. – Bernama, July 9, 2023.