KUALA LUMPUR: The World Bank has projected a better growth for the Malaysian economy in 2017 and 2018, backed by manufacturing growth and commodities.
Sudhir Shetty, the chief economist for the bank's east Asia and Pacific region said the slight recovery will be mostly due to improving oil prices.
But the growth pace will not be near the levels seen in 2014, he said in a video conference.
"The World Bank predicts that Malaysia's economic growth in 2017 and 2018 will be better compared to the 4.0 per cent targeted this year."
According to the World Bank's latest global outlook, growth in the region will be resilient over the next three years.
China is expected to grow from 6.7 per cent in 2016 to 6.5 per cent next year and 6.3 per cent in 2018.
In the rest of the region growth is projected to remain stable at 4.8 per cent in 2016 before picking up in 2017-2018.
"Despite the favourable prospects the region's growth is subject to significant risks," he said.
These uncertainties make it critical for policymakers to reduce financial and fiscal imbalances that have built up in recent years, he added.