Malaysia to see substantial economic growth following the end of this year
Malaysia will see substantial economic growth as a newly industrialized economy, which has remained relatively open and state oriented. Malaysia is the world’s largest Islamic Banking and financial center. Manufacturing accounts for 40% of the total Gross Domestic Product (GDP) of the economy.
International trade has always been a significant factor for Malaysia’s economic growth as it is one of the three countries that control the Strait of Malacca. Malaysia experienced an economic boom during the late 20th century. Since then the economy has undergone rapid development and growth.
The Malaysian economy is predicted to expand sustainably in the second half of the year following considerable export growth in July and a staggering 97.2% increase in approved foreign investment for the first half of 2019, said Finance Minister Lim Guan Eng.
Despite market expectations, Malaysian exports for July rose by 1.7% to RM88 billion compared to RM86.5 billion last year. Asian economies benefit from the trade tensions between the United States and China which have slowed down the global economic growth and expected to cripple major economies if not addressed and tackled efficiently.
The country’s export resilience has boosted Malaysia’s trade surplus for July, increasing by 75.6% to RM14.3 billion, from RM8.1 billion in the same month last year. The minister said Malaysia’s economy is also expected to grow in the third quarter of the year, following its rapid GDP growth at 4.9% in the second quarter.
A research study conducted by the American-Malaysian Chamber of Commerce in 2019 revealed that 76% of the companies surveyed planned to expand their investments in Malaysia within the next five years.