BY DASHVEENJIT KAUR / Pic By MUHD AMIN NAHARUL
Malaysia’s economy is expected to grow between 5% to 5.5% next year, lower than 2017’s gross domestic product (GDP) growth forecast of 5.2% to 5.7%.
According to the Economic Report 2017/18, the services and manufacturing sectors will continue to spearhead the expansion of the country’s economy next year.
This year, the service sector is expected to grow at a faster rate, reflecting stronger expansion across most sub sectors, particularly wholesale and retail trade, information and communication, and food, beverages and accommodation.
The service sector is expected to record a 6% growth this year and will account for 54.5% of the GDP.
However, the service sector is expected to grow 0.2% lower at 5.8% next year.
The wholesale and retail trade which contributes 15.1% to the service sector this year, will expand 6.5% but will slow to 6.1% next year.
The food, beverages and accommodation subsector which will grow 7.6% this year is expected to experience slight contraction to 7.2% next year.
The information and communication sector is projected to expand 8.5% for the whole of 2017.
The information and communication, real estate and business services, finance and insurance, and utilities are expected to register higher growth into 2018.
The manufacturing sector which accounts for 23% of the GDP, is estimated to grow at 5.5% this year but drop to 5.3% next year.
For the whole of 2017, export-oriented industries are projected to expand significantly following a higher global demand for semiconductors.
“Similarly, growth in domestic-oriented business will strengthen following improved demand for consumers products and construction-related materials,” it added on its 2017 estimates.