Views

Monthly Review: Signs of more dovish monetary policy

The ringgit remained relatively stable in March, supported by expectations of narrowing interest rate differentials between Malaysia and the US. Notably, the Federal Reserve (Fed) announced a slowdown in the pace of its balance sheet reduction. Consequently, the ringgit has traded within a stable range, bolstered by Malaysia’s resilient economic fundamentals and steady investor confidence. …

Monthly Review: Signs of more dovish monetary policy Read More »

Monthly Review: Malaysia prints strong 2024 GDP growth amid global trade war

Malaysia’s 4Q2024 gross domestic product (GDP) exceeded the advance estimate, bringing the full year 2024 GDP growth to 5.1%. The growth is within the official projection and MARC Ratings’ forecast. The continued expansion of the services sector underscores the resilience of private consumption, which remained a key growth driver, alongside strong external demand. Demand for …

Monthly Review: Malaysia prints strong 2024 GDP growth amid global trade war Read More »

Monthly Review: Malaysia sustains growth amid hawkish US policy

Malaysia’s 2024 GDP advance estimate read 5.1%, within the official projection and MARC Ratings’ forecast. This sustained growth was primarily driven by robust domestic demand, including strong consumer spending, and a resilient services sector. Overall business activity remained healthy, supported by a sharp 16.9% rise in exports in December. The strong overall exports, despite a …

Monthly Review: Malaysia sustains growth amid hawkish US policy Read More »

2025 Macroeconomic Outlook: Growth to sustain amid monetary easing and protectionism

Global economic growth is expected to sustain, given the continuation of monetary easing policies despite the heightened level of trade protectionism. Global growth will be supported by the US economy which appears resilient, outperforming earlier projections of recession and hard landing, largely due to a robust services sector. This sector, buoyed by job creation policies, …

2025 Macroeconomic Outlook: Growth to sustain amid monetary easing and protectionism Read More »

MARC Ratings: Crude palm oil price to average higher in 2025

The palm oil market continues to face significant uncertainties heading into 2025, with supply-side challenges exacerbated by adverse weather conditions and a slower pace of replanting. Palm oil prices in 2024 have remained elevated due to global supply constraints, driven by reduced exports from the largest palm oil producer, Indonesia, as well as recent adverse …

MARC Ratings: Crude palm oil price to average higher in 2025 Read More »

Monthly Review: US bond market diverges from broader bond market rally

Malaysia’s economy demonstrated resilience in the third quarter of 2024, with GDP growth reaching 5.3% (1H2024: 5.1%). Manufacturing growth accelerated to 5.6% (1H2024: 3.3%) while the positive investment cycle remains fuelled by a surge in capital imports. Exports saw a rebound in October, following a minor setback in September. Despite rising global uncertainties, especially after …

Monthly Review: US bond market diverges from broader bond market rally Read More »

MARC Ratings: Oil prices to moderate in 2025 on supply dynamics

The global crude oil market is grappling with multiple challenges, each exerting pressure on the near-term price trajectory. Despite OPEC+ production cuts, slow demand growth and diminishing geopolitical risk premiums have kept Brent oil prices below USD80 per barrel (bbl) since 3Q2024. Heading into 2025, oil prices are expected to be weaker compared to those …

MARC Ratings: Oil prices to moderate in 2025 on supply dynamics Read More »

Monthly Review: Caution in bond markets; confidence in domestic prospects

Following the 50-basis point US rate cut on September 18, subsequent releases of strong economic data and limited signs of easing inflation in the US have driven yields higher across all bond markets. Notably, the unemployment rate, a key indicator for future rate cuts, improved to 4.1% (Aug: 4.2%), underscoring the resilience of the US …

Monthly Review: Caution in bond markets; confidence in domestic prospects Read More »