The global economy is projected to continue its recovery in 2022. This outlook, however, is subject to significant uncertainties and remains uneven across economies. Beyond the continued evolution of the pandemic, geopolitical uncertainties, the interplay between supply chain disruptions, inflationary pressure, and policy normalisation in major economies will have a key influence on the durability of the global recovery. Meanwhile, developments in the global
capital market are expected to be in tandem with this economic outlook.
The Malaysian economy is projected to remain on a recovery path in 2022, amid a recovery in external demand, reopening of the domestic economy, and ongoing domestic policy support. However, downside risks to growth remain especially given external uncertainties, while the pace of economic recovery is expected to remain uneven across sectors, with stronger momentum expected in export-oriented sectors.
The performance of the Malaysian capital market is expected to improve further, in tandem with the recovery in the domestic economy. However, it will continue to be influenced by key global developments, with volatility likely to be driven by evolving geopolitical tensions as well as the timing and pace of global monetary policy normalisation. Nevertheless, the domestic capital market will remain resilient, orderly, and supportive of the economy, underpinned by strong macroeconomic fundamentals, ample domestic liquidity, and resilient capital market infrastructure.
