Malaysia Economy

While the first six months of 2016 have brought mixed results, Malaysia’s economy is expected to give an improved performance in the second half of the year, especially as remedial measures introduced by the government gain momentum.

The Malaysian economy continued to expand throughout 2015, shaking off falling commodity prices, weaker growth in China and a sharp depreciation of the local currency. 

A summit of the ASEAN group of countries in April, hosted in Malaysia, brought the bloc one step closer to realising plans to launch the ASEAN Economic Community (AEC) by the start of 2016.

Economic growth will slacken in Malaysia at the end of the year, continuing into 2015 as revenues from oil and other commodities plummet, but structural reforms will help mitigate these effects as well as lower debt. 

The economy defied expectations in Malaysia by maintaining a high level of growth in the first half of 2014 at 6.3%, according to new figures released in mid-August, though any weakening in exports could see the rate of expansion ease marginally towards the end of the year and into 2015.

A diplomatic approach towards regional issues has strengthened Malaysia’s efforts to boost trade and investment ties with China, setting the scene for the two countries to roll out an ambitious programme of increased financial cooperation.