Page 42 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

MARKET AND

INDUSTRY OVERVIEW

THE GLOBAL ECONOMY DOMESTIC ECONOMIC PERFORMANCE
In 2023, the global landscape Despite subdued growth, Malaysia’s labour market remained resilient,
presented significant challenges with with unemployment rates reducing to 3.3% in December 2023. Labour productivity
a restrictive monetary stance by the saw an uptick, and approved investments rose by 23% to RM329.5 billion, driven
United States (US) Federal Reserve, by both local and foreign investments, particularly in the manufacturing and services
defaults among China’s property sectors.
players, and ongoing geopolitical
The Malaysian government unveiled policy documents aimed at enhancing economic
conflicts in Eastern Europe and the
growth potential under the MADANI economy framework. Initiatives like the
Middle East. Malaysia, being an open
National Energy Transition Roadmap and the New Industrial Masterplan 2030 aim
economy, felt these external impacts
to attract investments, create job opportunities, and address climate risks while
with economic growth moderating to
elevating economic complexity.
3.7%, a marked reduction from the
previous year’s 8.7%. A key factor in this
Since May 2023, Bank Negara Malaysia (BNM) has maintained the Overnight
lackluster performance was weakened
Policy Rate (OPR) at 3% as the decline in inflation to 1.5% in January 2024 from its
external trade, with net exports
peak at 4.7% in August 2022 suggests the impact from past monetary tightening
contracting by 35.6% largely due to
has contained the inflationary pressures. In its recent monetary policy statement,
reduced demand from major partners
the Malaysian central bank expressed confidence in the country’s economic prospects,
like China, Singapore, the European
forecasting GDP growth of 4% to 5% in 2024. The International Monetary Fund (IMF)
Union (EU) and the US. In the last
has also projected a significant increase in global trade volume, expected to grow
quarter of the year, domestic drivers
by 3.3% in 2024 compared to 0.4% in 2023. This bodes well for Malaysia’s external
such as consumer spending and private
demand, particularly in the technology sector, where the country plays a crucial role
investment had also moderated as
in the global supply chain. However, risks persist, including geopolitical tensions and
households became cautious due to
uncertainties in the global economy.
rising living costs. Similarly, private
investment growth eased to 4% during
the last quarter as businesses remained
vigilant amid rising operational National
Energy New Industrial
expenses.
Transition Masterplan 2030
Roadmap (NIMP 2030)
(NETR) Goals Goals
Attract Elevate the economic
RM25 billion complexity based on
key missions in key
investments
sectors namely the
Electrical & Electronics,
Create Pharmaceuticals,
23,000 Automotive and Halal
industries among others.
job opportunities

Reduce GHG emission
by more than
10,000 Gg CO
2
equivalent per year
40