KUALA LUMPUR, 15 January 2020 – Standard Chartered forecasts the ringgit to trade at a range of 4.0 to 4.1 against the US dollar in 2020, from the range of 4.1 to 4.2 last year.
Head of ASEAN and South Asia FX Research of Standard Chartered, Divya Devesh highlighted the factors supporting the emerging market are: global growth expectations have stabilised, inflation has subdued globally, and the global central banks’ balance sheets size is increasing again.
“We have turned more positive on the ringgit. We are looking at a recovery in the Malaysian ringgit over the next one year,” Devesh said.
On the gross domestic product (GDP) growth, Standard Chartered projects Malaysia’s GDP to remain at 4.5 per cent, which is equivalent to 2019.
According to the Chief Economist at ASEAN and South Asia of Standard Chartered, Edward Lee, consumption should remain as the main growth driver, despite the pace of spending may ease due to the high base effect. While the labour market remains healthy.
Following the trade truce between the United States and China, Lee said it will help to get Malaysia on track for the fiscal position.
“Overall investment may recover slightly in 2020 amid trade war de-escalation and the resumption of public infrastructure projects,” Lee adds.