Q4 2024 current account surplus highest for last year, says Kenanga IB

Q4 2024 current account surplus highest for last year, says Kenanga IB

The increase was driven by a higher goods surplus and a smaller services deficit, according to the investment bank.

kl skyline
Kenanga Investment Bank said Malaysia’s current account surplus widened slightly to 1.7% of GDP in 2024, up from 1.5% in 2023. (EPA Images pic)
KUALA LUMPUR:
The current account (CA) surplus surged to RM11.4 billion or 2.3% of gross domestic product (GDP) in Q4 2024, up from RM2.2 billion (0.4% of GDP) in Q3 2024, making it the highest quarter surplus for last year.

According to Kenanga Investment Bank Bhd (Kenanga IB), the CA surplus widened slightly for the full year to 1.7% of GDP from 1.5% in 2023.

“The increase was driven by a higher goods surplus and a smaller services deficit, though wider deficits in both primary and secondary income partially offset the gains.

“A slowdown in GDP growth in Q4 2024 (5.0% year-on-year; Q3 2024: 5.4%) also contributed to the widening surplus,” the investment bank said in a note.

It added that despite Trump’s tariff threats, Malaysia’s exports are expected to continue outpacing imports, and strong tourism receipts may push the services account into surplus, supporting the overall CA balance.

“We forecast the CA balance to reach 1.9% of GDP in 2025 compared to 1.7% in 2024,” it said.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.