YearStarter 2023: Business – Economy better than expected, but challenges abound

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Challenges and risks abound, but there’s room for optimism as things return to normal and consumer spending increases.

Malaysia’s gross domestic product growth in the first three quarters consistently exceeded market projections.Direct investments of almost RM194bil were approved for the first nine months of 2022 , with a quarter of the investments coming from China.A good indicator of consumers’ spending appetite would be the sale of vehicles.

Between January and June 2022, more than 188,000 transactions were recorded worth RM84.40bil, an increase of more than 30% in volume and value compared to the same period last year, as all property sectors recorded year-on-year growth. In 3Q22, the aggregate reported quarterly earnings of the FBM KLCI’s 30 constituents improved 2.5% quarter-on-quarter and 7% y-o-y to RM15.8bil.Against the backdrop of a mixed business landscape, more Malaysians have been hired by the private sector this year.

Core inflation has been on an uptrend, reaching 4.2% in November 2022 mainly due to the rise in food and transportation costs.We felt the impact from the Russia-Ukraine war, higher crude oil prices and supply chain issue emanating from China's"zero-Covid" policy.

 

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