KUALA LUMPUR (Oct 4): The World Bank expects Malaysia's gross domestic production (GDP) to slow to 4.2% in 2016, compared to 5% in 2015, on the back of weak global demand for oil and manufactured exports. Furthermore, lingering public discourse surrounding 1Malaysia Development Berhad(1MDB) could impact investors’ sentiments and divert government’s focus from needed reforms," said World Bank in its newly released report entitled 'East Asia and Pacific Economic Update'. Comparatively, growth in the East Asia and Pacific region is projected to remain stable at 4.8% this year and rise to 5% in 2017. World Bank chief economist for the East Asia and Pacific Region, Sudhir Shetty, said prospects are stronger for the Philippines at 6.4% for 2016, and Vietnam which is expected to recover to 6.3% in 2017. A sharp global financial tightening, a further slowdown in world growth or a faster-than-anticipated slowdown in China would test East Asia's resilience," said Sudhir.

Source: The Edge Markets October 05, 2016 04:18 UTC