KUALA LUMPUR: RAM Rating Services Bhd expects Malaysia’s gross domestic product (GDP) to remain respectable in 2023, although a slower 4.3 per cent increase is seen compared to the 8.2 per cent projection for the 2022 full year.

During the RAM Insight Series titled “Economic Outlook 2023 – Choppy Waters Ahead?” webinar today, senior economist and head of economic research Woon Khai Jhek said the rating agency feels the slower growth was due to the ripple effects of slower global growth, in particular the slowdown in consumer electronic demand which will impact the semiconductor sector.

“However, I think that on the flip side, the broad and diversified domestic economy actually provides a sturdy base for continued growth.

“So, private consumption will continue to be the main anchor in terms of driving Malaysia’s economic growth and there will be further recovery once the labor market also starts to improve,” he said.