Malaysia Shipping Report Q2 2015
BMI View: Continuing, albeit slower, economic expansion and trade will support activity levels inMalaysia's main ports in 2015. Port Klang and Port Tanjung Pelepas further benefit from expansionprojects and developments which have been completed over the last two years.
BMI is predicting a slowdown in Malaysian economic growth in 2015, with GDP rising by 4.2%, comparedto an estimated 5.8% in 2014. The slowdown reflects weaker domestic consumption and export demand.
The expected introduction of a 6.0% goods and services tax (GST) in Malaysia in April 2015, along with alikely reduction in fuel subsidies and higher electricity tariffs as the government seeks to control the fiscaldeficit, will combine to limit household spending. Meanwhile, the slowdown in China, one of Malaysia'skey trading partners, will restrain export demand. China is Malaysia's third largest export destination,accounting for 12% of total exports. We believe that the recovery in the US will be unable to fully offset thedrag from the decline in Chinese demand, resulting in slower export growth in 2015. Over the medium term(2015-2019), we expect Malaysian economic growth to average at 4.1% y-o-y.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook