AmBank: BNM forecast in line with our view
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