UOB Kay Hian Palm Oil Outlook Session

• Global growth is expected to be sustained at 2.7%-3.2% in 2024 though moderated from 3.1% in 2023. The challenges to growth come from persistent tight monetary policy and the withdrawal of fiscal support, while mitigated by easing inflation, strong labour markets and an upturn in global trade, especially the technological cycle. 

• Global growth outlook remains subject to downside risks - higher-than-expected inflation, tighter financial conditions and geopolitical escalations. 

• Output gap is expected to turn positive (3.5%–4.5% in 2024). The actual output growth of 4.0%– 5.0% is projected to grow at a faster pace, underpinned by continued expansion in domestic demand and improvement in external demand.

• Over the medium term, potential output will remain supported by higher investments and improvements in productivity amid continued implementation of multi-year investment projects as well as national masterplan such as New Industrial Master Plan (NIMP) 2030 and National Energy Transition Roadmap (NETR) with a projected growth rate of 4%–5%, reverting to the pre-crisis level.

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南洋商报

• Artificial Intelligence (AI) has significantly reshaped the global economic development. It has emerged as the bedrock of the Industrial Revolution 4.0, driving unprecedented efficiency gains, error reduction, and cost optimisation across various sectors.
   
• The introduction of ChatGPT, in particular, even exemplified the potential of AI in showing incredible capabilities of adaptability and creation. Its rapid growth and integration into various industries have highlighted the demand for new AI-powered solutions.
   
• However, it is a double-edged sword that generates some concerns over privacy, reliability, and accuracy. Technical unemployment is the most significant factor that drives public fear.
   
• To equip itself with a better environment and ecosystem for development, Malaysia should learn from other regional peers, particularly Singapore the second highest in the AI Readiness Index 2023.
   
• Some recommendations for developing a better ecosystem in Malaysia:

a. Review and establish regulatory framework;

b. Awareness and knowledge building;

c. Promote research and development (R&D);

d. Testbeds and sandboxes in partnership with the stakeholders;

e. Enhance educational, reskilling and upskilling programs;

f. Special visa for foreign professionals and graduates.

南洋商报

星洲日报

中国报

The Associated Chinese Chambers of Commerce and Industry of Malaysia’s (ACCCIM) Malaysia’s Business and Economic Conditions Survey (M-BECS) was conducted from 6 November 2023 and 5 January 2024, covering the second half-year of 2023 (Jul-Dec 2023) and expectations for the first half-year of 2024 (Jan-Jun 2024), has received 684 responses.

The survey is a good barometer to gauge Malaysian Chinese business community’s assessment and expectations about domestic business and economic conditions as well as their prospects.

It covers questions to measure expectations about the prospects of economic and business performance; the main factors affecting business performance; and to gauge the implications of current issues and challenges faced by businesses.

This survey report is collaborated with and prepared by the Socio-Economic Research Centre (SERC).

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