ANZ: Malaysia's Q1 growth data does not fully reflect the impact of Middle East conflicts

The latest growth data does not fully reflect the impact of the Middle East conflict. According to the economist, signs of pressure have emerged in Malaysia's aviation and tourism sectors due to flight cancellations and a decline in tourists from the Middle East. Tan noted that the Malaysian Plastics Manufacturers Association has pointed out rising input costs and tightening raw material supply, which are causing production delays and margin pressure for plastics manufacturers. This, in turn, is having a ripple effect on downstream industries such as food and beverage packaging, pharmaceuticals, and electrical and electronics.