Malaysia’s economic miracle: 2024 boom predicted with a twist

RAM Rating Services Berhad reveals Malaysia‘s economic future, promising significant growth next year.

RAM Rating Services Berhad said in its Economic Outlook 2024 report to get ready for an economic renaissance. The tantalising revelations point towards a potential external demand turnaround, setting the stage for a dazzling economic performance.

The domestic front is gearing up for a resilience revolution, riding on the back of robust domestic demand, benevolent inflation, and interest rates that are the wind beneath the economy’s wings.

On the fiscal stage, RAM Ratings unveils a prediction of a 4.2% GDP fiscal deficit in 2024, showcasing the government’s fiscal magic. The agency credits a narrower deficit, down from the estimated 5% this year, to a lower subsidy bill, efficient operating expenditure management, and a tax revenue benefit from the expected economic upswing, reported The Nation.

The nation’s growth dreams might hit turbulence if the global economy fails to stick a soft landing and geopolitical conflicts refuse to play nice.

RAM Ratings issues a warning: a spike in global food and commodity prices could shake up domestic demand, while a bungled retargeting of RON95 petrol subsidies might rock the economy. With a need to fund crucial projects, the government’s debt will remain sticky at RM1.3 trillion in 2024, making debt servicing a considerable 16.1% of projected revenue.

In related news, Malaysian Health Minister Dzulkefly Ahmad, declared on December 18, that the country has no plans to reinstate the Covid-19 Movement Control Order (MCO). The minister assured the public that despite a surge in infections, the situation is well-managed thanks to the Health Ministry’s robust five-point Covid-19 management plan. This includes the innovative TRIIS system for community tracing, health facility monitoring, and the digital revolution of pandemic management through the MySejahtera app.

In other news, Malaysian Prime Minister Anwar Ibrahim orchestrated a Cabinet reshuffle, unveiling a strategic plan to fortify his administration and rebuild public confidence, just one year into his tenure.