2024 projected as a good year economically

KUCHING: Economically 2023 has been a rollercoaster for many, especially having come out of the pandemic where businesses were seen trying to find a grip in manoeuvring their way to sustain.

Throughout 2023, we have faced an increase in prices in various essential items such as eggs, and also rice, and these hikes in goods have seen many Malaysians having times of trial.

Economist Datuk Dr Madeline Berma said the Malaysian economy continues to be resilient to external headwinds with the nation expected to experience a slightly stronger economic growth momentum next year.

She was citing the International Monetary Fund (Dec, 2023), adding further that the World Bank projected the Malaysian economy to grow 4.3 per cent in 2024.

“The Malaysian economy is expected to benefit from a potential turnaround in external demand, resilient domestic demand and investment, a rebound in public spending, and supported by relatively low inflation and interest rates in 2024.

“The fiscal deficit is expected to reduce from 5.0 per cent in 2023 to 4.3 per cent of (gross domestic product) GDP in 2024, reflecting the fiscal consolidation by the government,” she said.

When asked whether Malaysia’s GDP will expand next year, she said that the Bank Negara Malaysia (BNM) projects Malaysia’s GDP growth to range from four per cent to five per cent for 2024 versus four per cent for 2023.

“Economic growth will be driven by domestic demand and a recovery in exports. The central bank projects inflation to range between 2.1 per cent and 3.6 per cent (against 2.5 per cent to 3.0 per cent for 2023), and for the unemployment rate to improve further to 3.4 per cent,” she added.

Besides that, when asked whether the oil prices would increase to boost the currency, Madeline who is also the Fellow of the Academy of Sciences Malaysia opined that Goldman Sachs has cut its forecast for the average oil price in 2024 by 12 per cent, citing abundant production in the United States.

“It expects Brent, the global oil benchmark, to average US$81 a barrel in 2024, down from its previous estimate of US$92 a barrel,” she said.

Madeline also commented on the influx of tourists coming to Sarawak, adding that the Tourism, Creative Industry and Performing Arts Minister reported that 2.6 million tourists visited the state in the first eight months of 2023.

According to Madeline, the minister, Datuk Abdul Karim Rahman Hamzah said Sarawak’s tourism receipts had also grown by 71.56 per cent from RM476 million in 2022 to RM818 million in 2023.

“Sarawak sets a new tourist arrival of four million in 2024. The increase in the number of tourists will boost Sarawak’s economy. Sarawak tourism industry is a crucial economic sector which generated RM11.6 billion in tourism receipts during the pre-pandemic period in 2019.

“Sarawak Tourism Master Plan 2021-2035 aims to increase the number of visitors to Sarawak from a baseline of 4.6 million visitors and RM11.6 billion in tourism receipts in 2019 to 12.7 million visitors contributing economic returns of RM50 billion by 2035,” she added.