Malaysia’s growth is likely to moderate this year after achieving its fastest pace in over two decades on a post-Covid rebound in 2022. The country’s GDP is seen halving to 4% in 2023, as cooling global demand hits Malaysian exports.
Higher costs continue to bite into household budgets—though inflation is expected to taper to 3% from last year’s 3.4%—a cause for concern for Malaysia’s government. In February it announced tax cuts for middle-income earners. Prime Minister Anwar Ibrahim is also targeting the nation’s budget deficit, which was projected at 5.6% of GDP last year. Plans to bring in more revenue include a tax on luxury goods.
Read Michael’s full article on Forbes Asia here.