The outlook reflects a gradual deceleration in private consumption in Malaysia due to the softening of the labour market and continued adjustments to fiscal consolidation.

Private investment is also expected to slow down as commodity prices and global economic growth remain subdued, the World Bank’s Malaysia Economic Monitor, launched here today, stated.

The report notes that key risks facing the Malaysian economy stem from commodity price instability and uncertainty over the growth trajectory in the global economy and its impact on Malaysia’s exports.

The Malaysia Economic Monitor includes a special focus on the strategic relevance of trade agreements that can help Malaysia implement key economic reforms needed to accelerate the country’s transition to high-income status.

– BERNAMA