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Moody’s Investors Service pointed out that Asia-Pacific countries such as Malaysia are expected to benefit from Sino-US trade and technology competition, and continued competition has disrupted global supply chains.
Competition between the United States and China brings opportunities to economies with strong manufacturing foundations and complete infrastructure, such as Malaysia (A3 stable), Vietnam (Ba2 stable), and Thailand (Baa1 stable). The escalation of military conflicts in the Middle East has also increased supply chain risks.
Moody’s said the economic slowdown in China and the United States will put pressure on Asia-Pacific credit conditions. Moderating global inflation will ease monetary tightening, but financial conditions will remain difficult for lower-rated issuers.
Moody’s forecasts a structural shift in growth in the Asia-Pacific region, with average real GDP growth falling to 3.6% in 2024, reflecting China’s economic slowdown and a weakening global economy. Although growth is slowing, the region will still be faster than other regions.
(Source: Bernama Image source: freepik)
