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Asia Media Group Berhad
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Annual Report 2015
INDUSTRY OUTLOOK AND FUTURE PROSPECTS OF OUR GROUP
I.
Overview of the Malaysian economy
The Malaysian economy registered a growth of 4.5% in the fourth (4th) quarter of 2015 (3Q
2015: 4.7%), supported mainly by the private sector demand. On the supply side, growth was
underpinned by the major economic sectors. On a quarter-on-quarter seasonally adjusted
basis, the economy grew by 1.5% (3Q 2015: 0.7%). For the year 2015, the Malaysian economy
expanded by 5.0%.
Despite the challenging economic environment during the quarter, the private sector continued
to be the key driver of growth. Private consumption grew by 4.9% (3Q 2015: 4.1%), supported
by stable wage growth and labour market conditions. Private investment expanded by 5.0%
(3Q 2015: 5.5%), driven by capital spending in the manufacturing and services sectors. Public
investment growth moderated in the fourth quarter (0.4%; 3Q 2015: 1.8%), following lower growth
in fixed assets spending by the Federal Government. Meanwhile, public consumption growth
registered sustained growth of 3.3% (3Q 2015: 3.5%) as the stronger growth in emoluments
was offset by slower growth in supplies and services expenditure.
On the supply side, growth in the fourth (4th) quarter was supported by the major economic
sectors. Growth in the services sector was underpinned by the consumption- and trade-related
activities. The manufacturing sector recorded a marginally higher growth, supported mainly
by domestic-oriented industries. In the construction sector, growth was supported by the civil
engineering and residential subsectors. Meanwhile, growth in the agriculture sector moderated,
reflecting lower production of palm oil. The mining sector, however, registered a contraction
arising from the lower production of both crude oil and natural gas.
(Source: Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter
of 2015, Bank Negara Malaysia)
The Malaysian economy is expected to remain steady in 2016, with real gross domestic product
growth between 4% - 5% led by domestic demand. Private sector expenditure will remain the main
driver of growth with private consumption and investment expected to grow by 6.4% and 6.7%,
respectively. Meanwhile, Government expenditure is forecast to expand, albeit at a moderate
pace, in line with efforts to strengthen the fiscal position. On the supply side, growth is expected
to be broad-based, with all the sectors registered positive growth. Malaysia’s external position
is forecast to remain positive supported by better prospects for global growth and trade.
(Source: Economic Report 2015/2016, Ministry of Finance Malaysia)
Management Discussion and Analysis
(continued)