KUALA LUMPUR: Standard Chartered Bank (StanChart) foresees a brighter economic outlook for Malaysia in 2024, with higher growth of 4.8% compared to 4.3% last year.

       Its Asean and South Asia chief economist Edward Lee told a press conference yesterday that domestic consumer spending, public-infrastructure investments and travel industry improvements are set to drive the uptrend despite the moderate 2.9% growth projected for the world economy.

       Lee noted that the 2024 allocation for government development spending – at close to 5% of gross domestic product (GDP) – is the highest in the past decade.

       He also said the country’s labour market is robust with the unemployment rate at 3.3% to 3.4%.

       StanChart also sees electronics exports bottoming out and eventual improvement is set to boost the domestic semiconductor sector and the overall economy.

       Although Lee remains cautious about a sustainable pick-up in 2024, given the softer growth in key trading partners, he reckons Malaysia’s diverse export markets and products should be able to mitigate the drag from possible weak exports.

       “Malaysia’s growth will be a bit softer in the first half and will pick up in the second half of the year,” he said.

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       Lee said he also believes that the Red Sea crisis would be contained and the conflict would not impact the domestic GDP print this year.

       On the ringgit, he said it may end the year at RM4.40 against the US dollar, with Bank Negara likely to maintain the overnight policy rate at 3% as core inflation is likely to remain benign. — Bernama