StanChart sees better 2H economy outlook

Inflation is definitely on the horizon for the Malaysian economy on the back of numerous subsidy cuts, according to Standard Chartered Bank.

"Malaysia has been making the right noises on the economic side throughout 2013 with being ranked sixth on World Bank's Ease of Doing Business Report; its high ability to attract foreign direct investments (FDI); and the Budget 2014 which made some difficult decisions and had received the approval of global ratings agency, Moody's in terms of our sovereign outlook," said StanChart's regional head of research, Southeast Asia, Edward Lee.

"That being said, inflation is set to trend higher this year amid subsidy cuts, especially in the auto and fuel segments. We're looking at a shaky first half for Malaysia given all these changes but a better second half as the economy will be on stable grounds after a shaky first half."

Lee is one of the economic quartet of speakers, which include David Mann (regional head of research, Asia), Callum Henderson (global head of FX research) and Clive McDonnell (head of emerging market equity strategy), at Standard Chartered Bank's Global Research Briefing 2014, held in Kuala Lumpur, this morning.

Read more: StanChart sees better 2H economy outlook [You must be registered and logged in to see this link.]