19-4-2024 (KUALA LUMPUR) Malaysia’s economy showed resilience in the first quarter of 2024, with official advance figures revealing a growth rate of 3.9 per cent compared to the same period last year. The data, released on Friday by the Statistics Department, highlighted the pivotal role played by the services sector in driving this expansion.
This growth represents a significant uptick from the 3 per cent annual growth recorded in the final quarter of 2023, a period marked by subdued exports that weighed on overall economic performance.
Chief Statistician Mohd Uzir Mahidin noted that all major sectors experienced positive growth in the first quarter of 2024, with the services sector leading the way with a 4.4 per cent year-on-year increase. This growth was primarily supported by robust performances in wholesale and retail trade, transport and storage, and business services.
Furthermore, the manufacturing sector rebounded strongly, posting a 1.9 per cent growth compared to a 0.3 per cent contraction in the previous quarter. Meanwhile, the agriculture sector saw a 1.3 per cent year-on-year increase, driven by growth in oil palm and livestock production.
However, Malaysia’s exports faced challenges, with data from the trade ministry showing a 0.8 per cent decline in March compared to the previous year. This followed a similar decrease in February. Despite these setbacks, the central bank projected a 5 per cent increase in exports for the year, rebounding from an 8 per cent contraction in 2023.
In its March policy meeting, the central bank opted to maintain its key interest rate at 3 per cent, citing its supportive stance towards the economy.
Looking ahead, both the government and the central bank anticipate full-year economic growth of 4 per cent to 5 per cent in 2024. This follows a sharp decline in full-year growth in 2023 to 3.7 per cent, down from the 22-year high of 8.7 per cent recorded in 2022.
The final first-quarter gross domestic product figures are expected to be released on May 17, providing a comprehensive overview of Malaysia’s economic performance during this period.
