Capital Market Review & Outlook

The global economic landscape continued to experience considerable challenges in 2023, marked by persistent divergence in global growth and monetary policy expectations, coupled with escalating geopolitical tensions that contributed to overall volatility in global financial markets. Domestically, growth of the Malaysian economy moderated but remained resilient, underpinned by sturdy domestic demand. Against the backdrop of heightened global challenges, the Malaysian capital market stayed orderly and continued to function effectively in financing economic activity and intermediating savings. Going forward, the Malaysian economy is expected to remain on a steady growth path in 2024, driven by continued private sector spending. Meanwhile, the domestic capital market is expected to remain stable, fair, and orderly, backed by sound economic fundamentals, ample domestic liquidity, and a supportive policy environment.

The global economy continued to experience considerable challenges and macroeconomic divergences. While remaining resilient, global economic growth momentum has moderated and is uneven across countries and regions amid the ongoing impact of tighter global monetary conditions, persistent underlying inflationary pressures, as well as heightened geopolitical uncertainty and geoeconomic fragmentation

The Malaysian economy continued to grow in 2023, albeit at a moderate pace, underpinned by resilient domestic private sector activities against the backdrop of challenging global trade. The labour market strengthened further, with the unemployment rate improving to a three-year low and supporting wage growth.

Global economic growth is expected to remain tepid in 2024 amid heightened economic uncertainties. The IMF in its October WEO forecasted global growth to ease to 2.9% in 2024 from an estimated 3.0% expansion in 2023. Nonetheless, economic growth in the ASEAN-54 region is projected to accelerate to 4.5% in 2024 from 4.2% in 2023, which may elevate business sentiment and investment interest in the region.

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