HSBC: Rising core inflation warrants BNM to continue OPR hiking cycleDespite global headwinds, the Malaysian economy has been an outperformer in the region. After a punchy growth of 8.9% in the second quarter (2Q2022), the economy is likely to have impressed again in 3Q (10%). Thanks to the reopening of borders and withdrawal of pandemic-related restrictions, private consumption has rebounded to be a key pillar of growth. Consumer and business sentiment has been upbeat, and the labour market is recovering at a swift pace. The unemployment rate is now at the lowest level since the pandemic started. Investment growth has also been resilient, with record foreign direct investment inflows in 2021. Moreover, a well-diversified export base has helped Malaysia to reap the benefits of elevated commodity prices and a global semiconductor shortage. While there are now clear signs of a slowing trade cycle, the domestic tailwinds may still be enough to offset the impact at least through 2022.