KUALA LUMPUR: Malaysia’s economy in 2024 is likely to register high growth, driven by improved performance in all sectors.
According to Inter-Pacific Asset Management (IPAM) chief economist and independent fund manager Datuk Dr Nazri Khan, the local economy has performed significantly well across the board and expects the momentum to continue next year.
“We are optimistic that the economy is going to grow between 4.5% and 5%, at the higher end of 5%. It could be one of the best economic growth that we have achieved for the last five years,” he told reporters during a press conference on IPAM’s market outlook 2024 yesterday.
At present, Nazri said there are indicators that Malaysia’s global trade has improved, particularly for its exports and foreign direct investment (FDI), which have increased markedly. He added that private investments have continued to be sustained.
“Across all sectors, the markets have also gone up, not only in the electrical and electronics (E&E) and technology sectors. Artificial intelligence (AI) will spill over into E&E products, technology products. The construction sector has boomed, while property has also boomed slightly.
On the plantation sector, Nazri projects crude palm oil prices to increase to RM4,000 per tonne next year, from the current range of RM3,000 to RM3,500.
Touching on Bursa Malaysia, he is optimistic on the local equity market in 2024, underpinned by growing foreign participation.
“We see signs of (stock) accumulation … we can say that there are patterns on the stock market, that it may have bottomed.
“We are optimistic on Bursa Malaysia as we see FDI come in and that foreign participation has gone up, which could be a sign that foreign investors are (interested to invest) on the exchange, maybe not so much on the initial public listing, but on the large gap stocks,” he added.
Nazri pointed out that the FBM KLCI is currently in the 1,460 to 1,470 range, although he hoped that it will “break 1,500” within this month. He also hoped that it would reach a high of 1,900.
He opined that, at the moment, the banking sector is the strongest sector in the stock market, followed by telecommunications. Moving forward, he reckoned that the technology sector will strengthen.
Meanwhile, Nazri said IPAM will collaborate with a US company to introduce AI technology into its system in March next year, to help provide information on the stock market to investors.
“Investors will be able to make more (informed) investment decisions, with the help of this upcoming AI system in identifying stocks that are trading low and predicting which stocks have the potential to rise in the future.
“So this AI will let us know, it can read pattern charts, fundamental patterns … we won’t say this AI is accurate but technology can simplify our process to make the right investment process,” he said.
Nazri also advised the public not to be deceived by illegal investment syndicates or online scams that use his name, pictures and videos.