The economy of Malaysia is going to expand by 4.7%by the end of the year 2019 and 4.6% by the end of the year 2020 irrespective of the challenges, while it is expected by the country to achieve status of high income nation at some point in between 2020 and 2024 as stated by the World Bank.
For 2018, the economic growth of Malaysia was expected to moderate in near term and grow at the rate of 4.9% that was underpinned by the continuous strong growth when it comes to private consumption. In the year 2017, the economy of Malaysia expanded by 5.9%.
Since it is a highly open economy, it will continue to face significant risk related to the uncertainty of the external environment as stated in the latest economic report of the World Bank.
The October 2018 edition of East Asia and Pacific Economic Update, Navigating Uncertainty, the World Bank said that the heightened financial market volatility that is triggered either by shifting monetary policy expectation in the advanced economies or some crisis in the other regions can spread across emerging economies that includes Malaysia through the capital outflaws and also the pressure on the exchange rates.
Another major risk related to the escalation in the protectionist tendencies and the trade tension in some of the main economies that can have an adverse effect on Malaysia is offered its high level of integration with the global markets and also its dependence on the value chain of the world as the source of the growth.