KUALA LUMPUR: Malaysia’s gross domestic product (GDP) will remain on a growth path into 2019, supported by its diversified economy and nature of exports, said Bank Negara Malaysia Governor Datuk Nor Shamsiah Yunus.
Despite a challenging external environment, she said, the domestic economy is likely to remain positive this year, spurred by robust private sector activity and moderate inflation.
“Private sector activity will be the main driver for growth for the rest of 2018 and 2019.
“Favourable labour market conditions, namely the robust private sector which has a high employment growth and significant improvement in consumer sentiments, will underpin private consumption,” she said at the “Malaysia: A New Dawn” Investors’ Conference here on Tuesday.
Nor Shamsiah said Malaysia’s policy stability and deep financial markets allowed the country to withstand external shocks and ensure growth.
The well-diversified economic structure, coupled with highly diversified export products and markets, accorded Malaysia the resilience to face global and domestic headwinds, she added.
On downside risks, she believes the ongoing trade tension which will disrupt global trade growth will affect Malaysia’s economy, going forward, but noted that financial intermediation was still at a healthy level.
“We have the policy tools to ensure that liquidity in the financial system is adequate to support intermediation activities,” said Nor Shamsiah, adding that the current monetary stance is appropriate, conducive and supportive to the growth.