HSBC Global Research Projects Robust 4.6% Growth

HSBC Global Research predicts Malaysia’s economic growth to reach 5.0% in 2024 before moderating to 4.6% in 2025. The momentum is driven by sustained investments, improved trade performance, and robust consumption.

HSBC Predicts Moderate Growth

The report highlights significant benefits to Malaysia, a key player in the electronics supply chain, from the substantial global trade recovery since early 2024. However, the trading pace remains slower compared to regional peers like Korea and Taiwan, which are more directly linked to AI-driven chip production.

Malaysia’s GDP growth in Q3 2024 stood at 5.3%, with a 1.8% quarterly growth rate. The gross fixed capital formation (GFCF) surged impressively, growing nearly 6.0% quarter-on-quarter, pushing year-on-year growth beyond 15%. This surge was bolstered by investments in data centers and public infrastructure from both public and private sectors.

Despite trade recovery, HSBC notes vulnerabilities in Malaysia’s semiconductor sector and other industries in Southeast Asia due to potential tariff risks tied to U.S. trade policies under incoming president Donald Trump. The report also observed that while consumption and investment have supported economic resilience, there remains room for Malaysia’s trade sector to catch up and further boost growth.

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Russel D

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