Key View

• We at Fitch Solutions maintain our current account balance forecast at 5.5% of GDP for 2021, and still see a weak imports outlook helping to support the overall trade balance, likely resulting in a wider current account surplus than in recent years.
• Exports are likely to continue being supported by relatively high commodity prices

Key View

• Malaysian telecoms operator Axiata Group and Norway’s Telenor Group have announced the intention to sign a merger of their Malaysian operations, two years after attempting to merge their entire Asian operations into one giant pan-Asian telco.
• The government’s digital transformation initiative has presented considerable operational

Key View

• We at Fitch Solutions maintain our 2021 real GDP forecast at 4.9%, which already accounts for the risk of another nationwide lockdown, which was announced on May 10.
• The latest lockdown will likely have a severe negative impact on employment and result in yet more spare capacity, weighing on domestic demand.
• With government consumpt

Key View

• We have revised up our solar forecasts for Malaysia, as we continue to see significant investor interests and project announcements.
• Stronger regulatory support and improved financing for the solar sector, as well as continued success of solar tenders, further underlines our view of Malaysia being an attractive investment destination

Key View

• We at Fitch Solutions maintain our view that the Bank Negara Malaysia will cut its key policy rate a further 25bps to 1.50% by end-2021.
• We also maintain our average inflation forecast at 1.8% y-o-y, and the benign inflationary environment would allow the central bank space to cut interest rates further.
• The lack of fiscal resources

Key View

• Spending on private healthcare is poised to improve in Malaysia.
• The surge in number of Covid-19 patients will paralyse the existing capacity of the healthcare system.
• Private hospitals in Malaysia will play a bigger role in combating Covid-19.

Spending on private healthcare is poised to improve in Malaysia. The rising cost of

Key View

• Lockdowns in Malaysia will likely last longer than two weeks.
• The surge in number of Covid-19 patients will paralyse the existing capacity of the healthcare system.
• Malaysia’s economic outlook continues to worsen with the accelerated spread of the pandemic in the country.

Lockdowns in Malaysia will likely last longer than two