16-8-2024 (KUALA LUMPUR) Malaysia’s economy has demonstrated remarkable resilience and growth, expanding by 5.9% in the second quarter of 2024, according to the latest figures released by Bank Negara Malaysia (BNM). This impressive performance, which slightly exceeded the statistics department’s advanced estimate of 5.8%, has been attributed to a combination of factors, including increased household expenditure, improved labour market conditions, and enhanced policy support.
In a press conference held in the capital, BNM Governor Abdul Rasheed Ghaffour highlighted the key drivers behind this economic upswing. The robust growth was fuelled by a notable uptick in exports and a surge in tourist arrivals, coupled with significant expansion in investment activities across various sectors.
Household spending continues to be the linchpin of Malaysia’s economic growth, with consumer spending expected to show further improvement in the coming months. Private consumption saw a healthy increase of 6%, while public consumption rose by 3.6%. The investment landscape also painted a positive picture, with private investment soaring by 12% and public investment recording a 9.1% increase.
Sectoral performance across the board showed encouraging signs of growth. The services sector, which forms the backbone of Malaysia’s economy, accounting for more than half of its economic output, expanded by 5.9%. The manufacturing sector demonstrated steady progress with a 4.7% growth rate. Notably, the construction sector exhibited exceptional growth, surging by 17.3%. The agriculture sector also showed significant improvement, increasing by 7.2%, while the mining sector registered a modest growth of 2.7%.
Governor Abdul Rasheed Ghaffour provided insight into the inflation outlook, projecting that headline inflation is expected to average between 2% and 3.5% for the year. This controlled inflationary environment, coupled with positive economic indicators, suggests a stable economic landscape for Malaysia in the near term.
