On 13 February 2015 the IMF executive board concluded consultations with Malaysia under Article IV of the IMF’s articles of agreement. The report indicates that the Malaysian economy has recently performed well. Economic growth was 5.9% in 2014 and is expected to be 4.8% in 2015.
Oil and gas production will be negatively influenced by the low oil price in 2015 but the large non-oil sector will be boosted by the reduced costs. The IMF considers that the growth in consumption will be more moderate owing to the introduction of the goods and services tax (GST) which is planned for April 2015. Price increases related to the introduction of the GST are however likely to be offset by lower energy prices. Subsidy reform is also planned from April 2015.
The IMF notes that Malaysia will benefit from the financial and economic integration taking place through the creation of the ASEAN Economic Community in 2015 and other continuing trade initiatives in the region.
