Bnm S 4th Quarter 2023 Report

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 I received this in the WhatsApp today. Its a snapshot of BNM's 4th Quarter 2023 Report This is not very good news. 



Then I went to the  Bank Negara website  and got this :


Economic and Financial Developments in Malaysia in the Fourth Quarter of 2023
The Malaysian economy expanded by 3% in the fourth quarter of 2023
2023 growth for the Malaysian economy normalised to 3.7%
Exports, however, remained subdued due to prolonged weakness in external demand amid stronger imports
The manufacturing sector remained soft from continued weakness in the electrical and electronics industry
monthly GDP, December recorded a growth of 1.4%, lower than November (3.8%) and October (3.9%)
On a quarter-on-quarter seasonally-adjusted basis, the economy contracted by 2.1% (3Q 2023: +2.6%)
(OSTB : This is why the Ringgit is falling. We were a giant in exports. Now our exports are shrinking. The manufacturing sector (especially electrical and electronics) is the largest contributor to our GDP (over 23%). If manufacturing is soft and weak then our exports will drop and the Ringgit will drop.
So Bank Negara please cut the OPR back to 2.75% or lower to stimulate more economic growth.  The fellow does not understand business or economics).  


Headline inflation continued to decline to 1.6% during the quarter (3Q 2023: 2%)
Both headline and core inflation have moderated due mainly to lower cost pressures amid stabilising demand conditions.
(OSTB : However BNM does not appear too convinced about the 'moderate' inflation. They have included a caveat. And their caveat starts with 'However..' 
However, inflation outlook remains highly subject to changes to domestic policy on subsidies and price controls, as well as global commodity prices and financial market developments

(OSTB : However inflation remains highly subject to whether they bungle things up or not. Which they likely will.    Hello Bank Negara Malaysia, cut the OPR).
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
By Syed Akbar Ali 

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