KUALA LUMPUR, March 29 (Xinhua) -- Despite global headwinds, the Malaysian economy is projected to grow between 4 percent and 5 percent in 2023, supported by firm domestic demand, Malaysia's central bank said on Wednesday.
Bank Negara Malaysia (BNM) said in a statement that further improvement in labor market conditions, continued implementation of multi-year investment projects and higher tourism activity are expected to support private consumption and investment growth in Malaysia.
However, it expects the global economic environment to remain challenging and uncertain in 2023, due to slower growth and tighter monetary policies in major economies, and subdued global trade activity.
"Despite the headwinds, the Malaysian economy is expected to continue to expand this year, and not enter a recession," BNM governor Nor Shamsiah Yunus said.
According to her, Malaysia's financial system will continue to be a key source of strength for the Malaysian economy in supporting the financing needs for Malaysia's transformation into a high-income, high value-added and low-carbon economy.
"Structural reforms remain important, but a carefully considered sequencing of these critical reforms will be important to deliver sustainable growth and price stability, while minimizing transitory costs," she added.