The central bank said in its Economic and Monetary Review 2023 report that this would be an improvement from 1.2% of the GDP last year, which was the lowest recorded current account balance since 1997 (-5.9%).

“The improvement is driven mainly by higher goods surplus amid lower deficit in the services account.

“The goods account is projected to record a higher surplus, as export growth recovery more than offset the rebound in import growth,” said BNM.

Meanwhile, the central bank said the services account is expected to register a smaller deficit, mainly due to a higher surplus in the travel account as tourist arrivals continue to recover to pre-pandemic levels in 2024.

“Nonetheless, the overall services account is expected to remain in deficit, reflecting the continued reliance on foreign services, particularly in the transport segment,” said BNM.

The central bank said the improvement in the goods and services accounts is expected to outweigh the continued deficit in the primary income, which is driven by the continued income payment accrued to foreign investors in Malaysia amid improving export earnings.

“Similarly, the secondary income account is expected to remain in deficit, due mainly to sustained outward remittances by foreign workers,” BNM added.