KUALA LUMPUR: Malaysia's gross domestic product (GDP) could exceed 5.0 per cent following its encouraging expansion of 5.1 per cent in the first half of 2024, said Hong Leong Bank Bhd group managing director and chief executive officer Kevin Lam.
"There is a possiblity that the growth might exceed 5.0 per cent for this calendar year. So we are quite positive on the GDP at the moment."
"Growth will continue to be underpinned by resilient domestic demand as the labour market continues to improve, while extended recovery in global demand provides an added impetus," he said.
Lam said the upside risks from potential spillover from the global tech upturn and faster project implementation, will likely mitigate downside risks from lingering geopolitical uncertainties and slowdown risks in China.
The bank however maintained its GDP's growth forecast between 4 per cent to 5 per cent this year.
On ringgit, he said the currency is expected to trade at 4.40 against US dollar by the end of this year.
"We have actually maintained the view for awhile when ringgit was still above 4.50 and now it has kind of overshoot to around 4.30."
"We hold the view that ringgit will probably still around 4.40 levels at the end of the year," he said.
As the ringgit forecast for 2025, Lam noted that it will be a little bit more difficult and hence, the bank will come up with a fresh view for next year.
He said it will depend on the pace of the US interest rate cuts that will be announced in September.