Malaysia: economic and financial
framework
Equipped with one of the most
mature and diversified emerging economies, with almost full employment,
Malaysia, which recorded an average annual growth of + 5.8% between 2010 and
2014, has suffered since the end of 2014 the consequences of three external
shocks: falling prices of oil and palm oil, economic slowdown in China (its
first trading partner), sharp depreciation of the national currency (ringgit)
against the US dollar. Despite this less favorable environment, the Malaysian
economy is showing resilience (growth of + 5% in 2015, + 4.2% in 2016 and
expected around + 4.8% in 2017), thanks to consumption and growth. investment,
supported in particular by support measures for infrastructure of general
interest. The 11th Five-Year Plan (2016-2020) aims to increase public
investment by USD 70 billion (4.5 points of GDP per year), focused on urban
transport, aeronautics and SMEs. However, this is in a context of high indebtedness
of the State and especially private actors, especially households (accumulated
debt close to 90% of GDP). Also, the rating agencies, which maintain Malaysia's
investment status, have put the country "under surveillance". Its
relative risk level increased, while remaining low to moderate (Moody's: A3, S
& P: A-, Fitch: A-, OECD: 2, Coface: A4 versus A2 previously).
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