Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 10 Management Discussion and Analysis (cont’d) INDUSTRY OUTLOOK AND FUTURE PROSPECTS OF OUR GROUP (cont’d) Overview of the Malaysian economy (cont’d) The sustained strong performance of the global economy in 4Q 2017 suggests that the current phase of expansion is likely to continue going into 2018. Of significance, the IMF revised its 2018 global growth projections upwards for the third time in its January 2018 publication of the World Economic Outlook Update. The outlook is underpinned by expectations for continued synchronised expansions in both the advanced and emerging market economies. In the advanced economies, leading economic indicators such as purchasing managers’ indices (PMI), manufacturers’ orders and capital spending intentions surveys point towards continued expansion in business spending by corporations and smaller firms. Economic activity is projected to be further supported by favourable labour market conditions continued access to financing and the implementation of pro-growth policies. In the US, the passing of the Tax Cuts and Jobs Act in December 2017 is expected to provide additional impetus to domestic demand, with positive spillovers to the rest of the world. Strong external demand will continue to benefit Asian economies. In addition, recently announced fiscal measures, including higher infrastructure spending, will complement the strength in domestic demand in several regional economies. (Source: Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter of 2017, Bank Negara Malaysia) Rising above expectations, Malaysia leveraged its strong economic fundamentals to record a robust growth in the first six months of 2017. Despite increasing protectionist threats, policy uncertainties in developed countries and geopolitical tensions, the domestic economy expanded 5.7% during the period. The expansion is a testament to the Government’s concerted efforts in implementing various reforms under the National Transformation Policy (NTP). The NTP, comprising several high- impact and innovative programmes, was introduced in 2009 to uplift the economy from the middle- income trap towards a high-income and advanced nation by 2020. (Source :http://www.treasury.gov.my/pdf/economy/er/1718/chapter1.pdf Economic Report 2017/2018, Ministry of Finance Malaysia)