Kuala Lumpur: The current account (CA) surplus of Malaysia surged to RM11.4 billion or 2.3 per cent of gross domestic product (GDP) in the fourth quarter of 2024, marking the highest level in three quarters. This is a significant increase from the RM2.2 billion, or 0.4 per cent of GDP, recorded in the third quarter of 2024.

According to BERNAMA News Agency, Kenanga Investment Bank Bhd (Kenanga IB) reported that the CA surplus widened slightly for the year, reaching 1.7 per cent of GDP compared to 1.5 per cent in 2023. The bank noted that the increase was primarily driven by a higher goods surplus and a reduced services deficit. However, these gains were partially offset by wider deficits in both primary and secondary income.

Kenanga IB also highlighted that a slowdown in GDP growth to 5.0 per cent year-on-year in the fourth quarter of 2024, down from 5.4 per cent in the third quarter, contributed to the widening surplus. Despite tariff threats from former President Trump, Malaysia's exports are anticipated to continue surpassing imports. The investment bank also noted that strong tourism receipts might elevate the services account into a surplus, thereby supporting the overall CA balance.

Looking ahead, Kenanga IB forecasts the CA balance to reach 1.9 per cent of GDP in 2025, an increase from 1.7 per cent in 2024.