Economic Views

Recommendations on Malaysia’s ongoing development of wage policies

Malaysia continues to maintain its policy commitment to worker welfare, through its ongoing review of wage policies. In July 2023, Malaysia increased the minimum wage from RM1,200 to RM1,500, extending its applicability to micro-enterprises with a staff size of less than five. The minimum wage of RM1,500 was already in effect since May 2022 for …

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GST and other potential anchors to enhance Malaysia’s fiscal position

Malaysia continues to maintain its long-term commitment of fiscal consolidation to enhance debt sustainability. In terms of the government’s fiscal balance, this has remained largely stable, excluding during the pandemic period. Over the 10-year period from 2013 to 2022, Malaysia’s fiscal deficit averaged 4.2% of gross domestic product (GDP). Excluding the COVID-19 fund, Malaysia’s fiscal …

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2Q2022 GDP: Growth currently consumption-driven, but will recede

Posted Date : August 11, 2022 We opine that Malaysia’s real gross domestic product (GDP) growth will likely pick up strongly by 8.5% y-o-y in 2Q2022, compared with the 5.0% recorded in 1Q2022. Our upbeat assessment is premised on the ongoing strength in private consumption growth, as suggested by high-frequency indicators despite a substantial uptick …

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BNM determined to support growth

The first Monetary Policy Committee (MPC) meeting of 2022 saw Bank Negara Malaysia (BNM) holding the overnight policy rate (OPR) unchanged at the record low of 1.75%. BNM has been on status quo since July 2020. The decision is in line with our expectation as we deem the current accommodative monetary settings as still necessary …

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