Real GDP growth for Malaysia will be 6.2% this year with strong economic and investment recovery and exports, says managing director and chief economist of Asia (ex-Japan) Daiwa Capital Markets, Singapore Prasenjit K. Basu.
“I have not factored in the effects of the general election on the GDP growth and that will be a medium-term impact to some degree,” he said on the sidelines of the International Corporate Governance Network summit yesterday.
He said Malaysia's exports were rebounding and the current high oil prices would also benefit the country as net oil exporter in Asia.
“The spike in oil prices is slightly negative for many Asian countries which are net oil importer but Malaysia is a substantial net oil exporter.
“Consequently, there will be a positive impact on Malaysia's economic growth as well as the current account,” he said.
Prasenjit said there would be a recycling of funds into Asia over the next three to four months after the sell-off in emerging markets.
On the overnight policy rate, he said: “Bank Negara was well ahead of the curve last year when it began to raise rates. I think it will continue to raise rates given that inflation is hedging up. I expect another 50 basis points rise this year.”