Macro - Country Economic Forecasts - Malaysia

Macro - Country Economic Forecasts - Malaysia

Following Malaysia's election, Prime Minister Anwar Ibrahim needs to build a coalition government from a spectrum of parties with often competing interests. It would govern after a period of rapid economic recovery, but at a time when the outlook has turned downbeat. We expect a pullback in exports to slow growth to 2.7% in 2023, raising the odds that the new PM will have to grapple with fiscal risks. The fragile nature of any coalition will likely make this a difficult challenge to navigate and could amplify market stress and pressure on the ringgit.