The downward trend is expected to continue because of the slowing momentum of price increases.

“We will continue to monitor potential risks to its outlook (inflation rate), arising mainly from changes to domestic policy on fuel subsidies,” Rasheed said in his opening remarks at the International Conference on Financial Crime and Terrorism Financing 2023 here today.

He said Malaysia has been fortunate as it does not have to face the severe inflation challenges other countries’ economies have, as its inflation rate reached its peak in the second half of 2022 before dipping since then.

Rasheed said the trend stemmed from lower global commodity prices and improving supply and demand conditions.

He said that despite worldwide economic challenges, the Malaysian economy remains resilient.

Domestic-orientated activities, labour market conditions involving the improvement of employment and wages, as well as foreign and domestic investment contributed to the economic resilience, he said.

“These factors will continue to support the Malaysian economy in 2024. The economy would also benefit from a gradual recovery in the tech cycle and a rebound in external demand,” he said.