Despite considerable external and domestic headwinds, Malaysia’s GDP grew in 2016 but at a slower pace, dropping to 4.2% against 5% GDP growth in 2015. Domestic demand continued to anchor growth, supported mainly by private sector spending. Private consumption growth, in particular, was sustained at 6.1% (2015: 6.0%), buoyed by continued employment and wage growth following the increase in minimum wage and civil servant salaries. Inflationary pressures in the economy remained low over the course of the year with headline inflation averaging 2.1% in 2016, in line with the preceding year’s 2.1% headline rate. Despite a much weaker Ringgit, domestic fuel prices and input costs remained low due to relatively low global energy and commodity prices. This certainly helped mitigate the impact of adjustments to administered