KUALA LUMPUR: The Malaysian economy is projected to grow between four per cent and five per cent in 2024, underpinned by continued expansion in domestic demand and improvement in external demand.
Bank Negara Malaysia, in its Economic Monetary Review 2023 (EMR 2023), said the possible growth will be driven by resilient domestic expenditure, with additional support from the expected recovery in exports.
The report said tourism is expected to improve further, while the implementation of new and ongoing multi-year projects by both the private and public sectors would support investment activity.
"Nevertheless, domestic growth remains subject to downside risks from both external and domestic factors.
"External factors include weaker-than-expected global growth and further escalation of geopolitical conflict," it said.
Domestically, the report highlighted that more severe shocks on commodity production and the implementation of subsidy rationalisation could also weigh on the growth outlook, although this could be partially offset by targeted cash assistance from the government.
"Greater spillover from the tech upcycle, stronger-than-expected tourism activity, and faster implementation of existing and new investment projects would provide upside risks to domestic growth," it added.