AmBank: BNM fore­cast in line with our view

New Straits Times - - Business -

com­pared with the pre­vi­ous year.

“We plan for or­ganic growth this year. It would be less than 50 per cent. We tar­get to sell more than 1,000 units this year, com­pris­ing all models and vari­ants,” KUALA LUMPUR: AmBank Re­search says Bank Ne­gara Malaysia’s pro­jec­tion of 4.3 to 4.8 per cent growth for the do­mes­tic econ­omy meets its own es­ti­ma­tion of 4.5 per cent.

“In line with our view, growth will be sup­ported by ex­ports on the back of im­prov­ing global growth, which we project would ex­pand by 3.3 per cent this year, from 3.1 per cent last year, due to im­proved de­mand from our trad­ing part­ners and firmer com­mod­ity prices,” said the re­search house.

It noted that the bulk of the econ­omy’s growth would be spurred by the con­struc­tion/ in­fra­struc­ture sec­tor, which it said was poised to ben­e­fit from the im­ple­men­ta­tion of the on­go­ing and new projects.

Trail­ing it will be con­tri­bu­tions from the ser­vices sec­tor as well as re­tail and ex­port-re­lated ac­tiv­i­ties in the elec­tri­cal and elec­tron­ics sec­tor.

“The ser­vices sec­tor will be mainly sup­ported by con­tin­ued ca­pac­ity ex­pan­sion in the do­mes­tic-ori­ented in­dus­tries, such as he said.

The new Volvo S90 and V90 will be of­fered in two vari­ants, the T5 and T6 R-De­sign.

The S90 T5 and T6 R-De­sign are priced at RM388,888 and RM453,888, re­spec­tively, while telecom­mu­ni­ca­tions and real es­tate,” it said, adding that tourism-re­lated ac­tiv­i­ties and the ed­u­ca­tion sec­tor were also ex­pected to con­trib­ute to the econ­omy’s growth.

AmBank Re­search ex­pects the cur­rent mon­e­tary pol­icy to re­main un­changed de­spite in­fla­tion­ary pres­sure kick­ing in.

“On that note, we en­vis­age the real re­turns to stay in the neg­a­tive re­gion this year. The last time we wit­nessed a pro­longed pe­riod of neg­a­tive real re­turns was from Fe­bru­ary to Novem­ber 2011 and De­cem­ber 2013 to Au­gust 2014.

“In both th­ese pe­ri­ods, we saw a 25-ba­sis point (bps) hike in the Overnight Pol­icy Rate. We have also fac­tored in a 30 per cent chance for a 25bps rate hike some time in the fourth quar­ter of this year,” it said.

Al­though the house­hold debt to gross do­mes­tic prod­uct (GDP) ra­tio im­proved last year largely due to higher nom­i­nal GDP growth, AmBank Re­search is keep­ing it on its watch­list this year. Fran­cis Dass the V90 T5 and T6 R-De­sign are avail­able at RM393,888 and RM458,888, re­spec­tively.

All prices stated are in­clu­sive of six per cent Goods and Ser­vices Tax, but without in­sur­ance. Goh Thean Howe

PIC BY SALHANI IBRAHIM

Volvo V90 will be of­fered in two vari­ants, the T5 and T6 R-De­sign.

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