MIDF said due to the insignificant foreign debt service charges, government expenditure would not be hampered if the ringgit devalued further. — Picture by Yusof Mat Isa

KUALA LUMPUR, Oct 24 — Malaysia’s relatively strong and firm economic fundamentals is capable of withstanding external-driven crisis, said MIDF Amanah Investment Bank (MIDF).

While saying that the economy was driven by domestic spending and lesser exposure to external trade, the research house added that the steady pick-up in global energy prices provided additional support for private investment and employment, particularly in the mining sector.

After the global financial crisis in 2009, Malaysia gradually shifted from being export-dependent to domestic-driven economy.

“The share of exports to Gross Domestic Product (GDP) trimmed to 70.4 per cent in 2017 from 98.2 per cent in 2007, while imports’ share fell to 62.1 per cent from 76.5 per cent over the 10-year period,” it said in a research note today.

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