KUALA LUMPUR: Socio-Economic Research Centre (SERC) expects all local economic sectors across the board to grow in 2018 albeit at a slower pace.
“The service, manufacturing and construction sectors will continue to lead,” said SERC executive director Lee Heng Gui in a media briefing here this morning.
“The drivers of services are steady domestic spending, logistics services and demands from electronics and electrical (E&E), refined petroleum and wood products industries.
"On top of that, domestic-market oriented demand such as construction-related building materials, food products and transport equipment will also push the growth of the service sector,” he said.
He noted that the on-going civil engineering infrastructure projects such as the East Coast Rail Line (ECRL), MRT Sungai Buloh-Serdang-Putrajaya (SSP) line, Electrified Double-Track Gemas-Johore Bahru, Setiawangsa-Pantai Expressway (SPE) and Pan Borneo Highway will support the construction sector.
SERC also expects the construction of residential and affordable housing programs to continue but a slow down in commercial and retail space development due to property overhang in 2018.
Lee is expecting the country's gross domestic product (GDP) growth to stabilise to 5.1 per cent this year coming from a high base of 5.8 per cent last year.
Ringgit is also forecasted to end at the range of RM3.80 to RM3.90 against the US dollar by the end of 2018.