People walk in front of a shop at a shopping mall in Kuala Lumpur, Malaysia, on December 26, 2022. (Source: Xinhua/Zhu Wei)
Analysts pointed out that China is an important trading partner of Malaysia, and Sino-Malaysia economic and trade cooperation will continue to play an important role in the development and transformation of Malaysia’s economy.
KUALA LUMPUR, Dec. 31 (Xinhua) — In 2022, Malaysia’s economy will steadily recover thanks to improved working conditions, increasing trade with foreign countries and so on. However, according to some research agencies, Malaysia faces challenges such as a sluggish economy and weaker exports in 2023.
Bank Negara Malaysia, Malaysia’s central bank, said the Malaysian economy grew 9.3 percent in the first three quarters of 2022. It forecasts overall GDP growth to be between 6.5 percent and 7 percent for the full year, compared to 3.1 percent for 2021.
In September, the World Bank raised its forecast for Malaysia’s economic growth for 2022 to 6.4 percent from a previous 5.5 percent. The World Bank said in its report that Malaysia’s economic growth is being supported by strong domestic demand, underpinned by steady improvements in labor market conditions and tourism-related activities by domestic and international travelers.
People walk past billboards for shopping on December 26, 2022 in Kuala Lumpur, Malaysia. (Source: Xinhua/Zhu Wei)
Regarding foreign trade, statistics from the Ministry of International Trade and Industry showed that trade grew by 29.9 percent in the period from January to November 2022 compared to the same period last year. Exports increased by 27.2 percent, imports by 33.3 percent and the trade surplus by 2.6 percent.
On the other hand, Malaysia suffered from high inflation due to the spillover effects of US Federal Reserve rate hikes. In the third quarter, the inflation rate was 4.5 percent. In September, the ringgit slipped against the US dollar, breaking the all-time low recorded during the 1998 Asian financial crisis.
Looking ahead, several research institutes fear that an expected slowdown in the global economy and weaker global demand will challenge Malaysia’s economic recovery in 2023.
A recent statement from S&P Global Market Intelligence showed that the seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) came in at 47.9 in November, compared to 48.7 in October.
People walk in front of a shopping mall as an electronic screen shows a video clip celebrating the Year of the Rabbit on December 26, 2022 in Kuala Lumpur, Malaysia. (Source: Xinhua/Zhu Wei)
According to the Malaysian central bank, the country’s economy is expected to grow by 4 to 5 percent in 2023.
Analysts pointed out that China is an important trading partner of Malaysia, and Sino-Malaysia economic and trade cooperation will continue to play an important role in the development and transformation of Malaysia’s economy.
The Malaysian Investment Development Agency showed that Malaysia attracted approved foreign direct investment of 130.7 billion ringgit ($29.7 billion) in the first three quarters of 2022, with China leading the way with 49.2 billion ringgit (January 11, 2022). .17 billion US dollars) dominated.
A woman sells balloons in front of a shopping mall in Kuala Lumpur, Malaysia on December 26, 2022. (Source: Xinhua/Zhu Wei)
Malaysian Transport Minister Anthony Loke Siew Fook recently said Malaysia looks forward to further strengthening economic cooperation with China. Chinese companies contribute a lot to the economic and trade success between Malaysia and China. Under the Belt and Road Initiative, a large number of Chinese high-end and cutting-edge enterprises entered Malaysia, bringing vitality and hope to Malaysia’s prosperity and development.
He also said Malaysia encourages and welcomes more high-tech, energy-saving and green Chinese enterprises to come to Malaysia to help with industrial transformation and upgrading. Chinese companies are expected to make more contributions to Malaysia’s economic development in terms of technology transfer and job creation.■
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