19-7-2024 (KUALA LUMPUR) Malaysia’s economic landscape has brightened considerably, with official advance estimates revealing a robust 5.8% year-on-year growth in the second quarter of 2024. This marked improvement, disclosed by the statistics department on Friday, surpasses the unexpectedly strong 4.2% growth recorded in the first quarter, painting a picture of accelerating economic recovery.
The services sector emerged as the primary engine of this growth, expanding by 5.6% compared to 4.7% in the previous quarter. Chief Statistician Mohd Uzir Mahidin highlighted the significant contributions from wholesale and retail trade, transportation and storage, and finance and insurance sub-sectors in propelling this expansion.
“The external sector has also shown encouraging signs,” Mohd Uzir noted, “with increases in total trade, exports, and imports compared to the same period last year.” This positive trend in external trade has played a crucial role in bolstering the overall economic performance.
June’s export figures, while falling slightly below market expectations with a 1.7% year-on-year increase, still contributed to a respectable 3.9% growth in exports for the first half of 2024, as reported by the trade ministry.
The cumulative effect of these factors has resulted in a 5% increase in gross domestic product (GDP) for the first half of 2024, a notable improvement from the 4.1% growth observed in the same period last year.
Looking ahead, the statistics department expressed optimism about Malaysia’s economic trajectory, forecasting continued growth momentum driven by both domestic and export-oriented factors. This positive outlook aligns with the government and central bank’s projections of 4% to 5% economic growth for 2024.
Economic analyst Dr. Lim Soo Hoon commented on the figures: “These results are particularly encouraging given the global economic uncertainties. The diversification of Malaysia’s economy, especially the strong performance in services, demonstrates resilience and adaptability.”
The central bank, Bank Negara Malaysia (BNM), has maintained its key interest rate at 3.00%, citing manageable inflation despite recent diesel subsidy cuts. BNM’s decision reflects confidence in the economy’s strength, supported by resilient domestic spending, improving exports, and a resurgence in tourist arrivals.
Inflation remains a key focus, with BNM projecting headline inflation to range between 2% and 3.5% for the year. This moderate inflationary outlook, combined with robust growth figures, suggests a well-balanced economic expansion.
As Malaysia navigates the post-pandemic economic landscape, these latest figures indicate a strong recovery trajectory. The services sector’s performance, coupled with improvements in external trade, positions the country favourably for sustained growth in the latter half of 2024.
The full details of the second quarter GDP figures are eagerly anticipated, with the official release scheduled for 16 August.
