Malaysia’s Current Account Surplus Forecast to Increase in 2021; Outlook for Financial Account Subdued: Fitch

Fitch Solutions Country Risk and Industry Research  (Fitch Solutions) stated that Malaysia is expected to see an improvement in its current account performance during 2021.

In its Outlook issued on the 6th of January 2021, Fitch Solutions expects Malaysia’s current account surplus to reach an estimated 3.0% of gross domestic product (GDP) in 2021, led by a robust goods balance amidst a strong crude palm oil price outlook and subdued imports, despite a pick-up in external regional demand.

However, according to Fitch Solutions, a strong MYR is likely to limit the extent of the current account surplus.

Meanwhile, Fitch Solutions’ noted that the outlook for Malaysia’s financial account remains subdued for 2021, with ‘high political risks&r...