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36 BANK MUAMALAT MALAYSIA BERHAD

MARKET AND INDUSTRY OVERVIEW

In 2024, Bank Muamalat operated in a
challenging macroeconomic environment,

supported by robust domestic demand,
manageable inflation, and accommodative
monetary policy, with GDP expanding by
5.1% and the OPR holding steady at 3%.

Going forward, Bank Muamalat’s focus on
digital innovation, sustainable finance, and
strategic sectoral expansion will be critical
in navigating emerging risks and capturing

new growth opportunities.

THE GLOBAL ECONOMY
In 2024, the global market navigated restrictive monetary foundation for economic momentum. The government’s
policies, ongoing geopolitical tensions, and uneven recoveries continued push under the MADANI economy framework,
across major economies. The United States (US) maintained highlighted by initiatives like the National Energy Transition
higher interest rates to curb inflation, leading to tighter Roadmap, National Semiconductor Strategy and the New
financial conditions. Meanwhile, China’s recovery remained Industrial Masterplan 2030, has further diversified the economy
uneven, challenged by structural issues in the property sector and spurred productivity.
and subdued domestic consumption, prompting targeted
fiscal measures. While global trade growth remained Monetary policy played a supportive role as well, with Bank
constrained amid soft demand from major economies, Negara Malaysia (BNM) keeping the Overnight Policy Rate
the Euro area saw a modest improvement, led by easing (OPR) at 3% over the year. This policy contributed to a gradual
inflationary pressures and gradual improvements in private easing of headline inflation, which settled at approximately
sector activity. 1.8% by year-end. Complementary fiscal measures,
including targeted stimulus and enhanced public spending
on infrastructure, further underpinned domestic demand
DOMESTIC ECONOMIC PERFORMANCE despite the challenging external environment.
Malaysia’s domestic economy demonstrated notable resilience Looking ahead, Malaysia’s economic outlook remains positive,
in 2024, even as external headwinds continued to weigh on with GDP growth expected to be sustained in 2025 despite
global trade. Private consumption remained a vital growth global uncertainties. Household spending will be supported
driver, with household spending supported by stable wage by steady employment and wage growth, as well as policy
growth and robust employment figures. Although consumers measures, while investment momentum will continue to
faced cost pressures in some areas, slight improvement in benefit from structural reforms and strategic national initiatives.
income levels and a gradual moderation in inflation helped Exports are expected to expand moderately, supported by
sustain domestic demand. the global tech upcycle, growth in non-electrical and electronic
sectors, and higher tourist spending. However, risks persist,
Key sectors such as manufacturing and construction recorded including a potential slowdown in major trading partners, trade
robust expansion, bolstered by both local and foreign direct policy uncertainties, and lower-than-expected commodity
investments. Significant infrastructure projects – ranging production.
from the modernisation of transportation networks to the
enhancement of digital connectivity – provided a solid