Nomura: Fiscal reforms to weigh on M'sian growth

FURTHER fiscal consolidation and a slowdown in Chinese demand for commodities will affect Malaysia's economic growth next year, according to Nomura Equity Research.

The economy is seen expanding 4.5 per cent in 2014, and moderating to 4 per cent the year after on the back of a 6 per cent goods and services tax which is scheduled to be introduced in April 2015.

Nomura's GDP forecast is lower than the government's 5-5.5 per cent for 2014, as is its projected 4.3 per cent growth this year (versus 4.5-5 per cent.)