World Bank sees higher growth for Malaysia

KUALA LUMPUR, Dec. 14 (Xinhua) -- The World Bank said Thursday it has raised Malaysia's gross domestic product (GDP) growth this year to 5.8 percent, the country's highest annual growth rate since 2014.

This is the third time the bank revised up Malaysia's GDP growth. In October, it projected Malaysian economy to grow at 5.2 percent this year.

The bank's director for regional partnership in Malaysia and Thailand Ulrich Zachau told the media after launching the Malaysia Economic Monitor report that the lift was due to domestic and external drivers that propel better economic growth.

"Malaysia's economy growth has been strong within the region. If you compared with other countries in the region, Malaysia's economy growth comes from all sources," he said, adding that he expects the growth to continue to be robust in the next couple of years.

According to its report issued Thursday, accelerated growth has been fueled by strengthening domestic demand, improved labor market conditions, and wage growth as well as improved external demand for Malaysia's manufactured products and commodity exports.

Capital expenditure has also increased due to higher private and public investment.

With both domestic and external demand expected to remain robust, the World Bank also projects Malaysian economy to grow at 5.2 percent in 2018.

"The expansion of Malaysia's exports is expected to continue into the first half of 2018, although at a lower rate," said the report.

Malaysia's economy grew 6.2 percent year-on-year in the third quarter this year, the strongest growth since the second quarter of 2014. Enditem