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Editorial

Overview

Malaysia’s economy is gradually picking up after a period of slower growth characterised by a weak Ringgit, low international commodity prices and the instability generated by corruption allegations at the highest levels of the administration. Private consumption has noticeably picked up and lawyers have also reported that the manufacturing and services sectors have expanded.

The outlook remains positive and it is expected that local demand will continue cementing the yet fragile economic recovery, complemented by continued income growth and a more stable labour market. It is also hoped that a more favourable global trade environment will help spur the recovery. There are signs of a renewed interest in the country from foreign investors following the implementation of reforms by the government, which is committed to fiscal consolidation (having set the fiscal deficit for 2017 at three per cent of GDP). Specialist lawyers hinted that the government may need to consider additional legislation seeking to reduce public expenditure, raise revenue and improve public sector efficiency.

Within this context, the legal market remains active with new firms joining the list of long-established names, although many of these new entrants have either been founded by very experienced lawyers starting their own practices, or are the result of significant mergers.

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