Malaysia's Strong Economy Can Weather Potential Fall-Outs, Says HSBC

KUALA LUMPUR, Oct 24 (Bernama) -- Malaysia's sound macro fundamentals will help weather potential fall-outs in its equities market, HSBC Bank Malaysia Bhd said. The bank said the country's current account surplus and low inflation could help cushion the negative impact of tighter-than-expected US monetary policy and escalating geopolitical tensions on global equity markets. Head of Retail Banking and Wealth Management Lim Eng Seong said Malaysia was one of the fastest-growing countries in Asia on the back of improving exports and increasing infrastructure spending. "Its reform of fuel subsidy and the implementation of the Goods and Services Tax next year are positive policies to the economy," he said in a statement here Friday. Meanwhile, in a research note, AllianceDBS Research projected Malaysia's economic growth would average around 5.5 per cent in the second half of this year while the full-year gross domestic product forecast stood at 5.8 per cent. Malaysia's export expanded 1.7 per cent in August from 0.8 per cent in July while the industrial production index growth was 6.5 per cent in August against 0.6 per cent in July. --BERNAMA