Economic Analysis - An Emerging Market Bright Spot For Industry Investment - NOV 2017
BMI View: Malaysia is one of the most attractive emerging markets for industry investment. Opportunities will be created across a range of sectors by strong underly i ng economic growth and an improving business environment . The power, infrastructure and food and drink industries top our rankings.
Malaysia will be a global growth outperformer in the coming years. Growth will be driven by an expanding workforce, further improvements in business environment and continued ASEAN economic integration. While annual average growth in real GDP of 4.7% over 2017-2021 is only slightly higher than the global emerging market (EM) average of 4.5%, it is rapid growth for an economy at Malaysia's state of development. Malaysia is an 'upper-middle income' country with a GDP per capita at USD9,509 in 2016, compared to USD1,706 in India and USD3,507 in Indonesia. The country thus does not benefit from the positive impact on headline growth rates of low base effects to the same extent as poorer EM peers. Average growth for upper-middle income states as a whole over the period will be just 3.3%.
Industry Overview: Power And Infrastructure Stand Out
|Oil And Gas Attractiveness No Match For Other Industries|
|Malaysia - Relative Risk And Reward Scores For Industry|
|Note: Scores out o f 100, with 100 being the best. Source: BMI Industry Risk/Reward Index|