Swiss banking giant UBS said it remained positive on Malaysia's long-term economic prospects and that GDP growth for 2020 will be in the 4.6 to 5 percent range.
In a statement today, its Singapore branch said Malaysia's exports should increase once China's economy turns around.
"We have also recently upgraded our three, six and 12-month forecast on the ringgit (versus the US dollar) to RM4.05 from RM4.15 previously," said corporate communication manager Adeline Lee.
On Malaysia's stock market performance, Lee explained that Malaysia is a highly defensive market amid the ongoing global equity market bull run.
"Should the global equity markets turn the corner as a result of the economic cycle coming to an end, a defensive market like Malaysia would be a more attractive investment proposition," said Lee.
This clarification from Lee was part of a UBS press release which admitted that its regional chief investment officer Kelvin Tay made several mistakes when appraising Malaysia's economy during an interview with Bloomberg.
Tay's gloomy assessment had become a hot political topic in Malaysia as critics used it to paint ineffectiveness in the government's handling of the economy.
However, several government officials have disputed Tay's assessment and pointed out mistakes, such as the claim that Malaysia had a current account deficit and 30 percent of GDP was reliant on the fossil fuel industry.