Malaysia is enjoying uninterrupted momentum in attracting investment and trade flows destined for South-east Asia. As a leading trading nation it has the necessary infrastructure and determination to compete and partner with its ASEAN neighbors to create a more sustainable growth model.
Investments to raise freight-handling capacity in Malaysia’s ports, supported by expanded land transport infrastructure, should greatly increase the capacity of the country’s logistics sector in the years to come, positioning it as a rival to regional centres such as Singapore.
Despite falling revenue from a weaker commodities market and concerns over political uncertainty, Malaysia’s economy maintained a steady growth rate in 2016, though expansion may come under pressure in the coming year.
A slight uptick in sales and new hires in Malaysia’s manufacturing sector indicates the country may be moving towards a rebound, though any recovery is likely to be muted, as rising costs and uncertainty over demand look set to curb growth rates.
Foreign appetite for Malaysian bonds has been increasing over the year, with international buyers moving into the market for government papers as investors seek higher returns and market stability.
As part of a broad national strategy to promote itself as a prime tourism destination, Malaysia has ramped up efforts to court Chinese visitors with a series of initiatives.
While a slowing of economic growth and uncertainty over global market conditions are expected to cool Malaysia’s insurance industry this year, regulatory reforms could drive expansion in the medium term.