PETALING JAYA: Based on advance estimates, Malaysia’s economy expanded 5.8% in the second quarter of 2024, up from 4.2% in the previous quarter.
The Q2’24 growth, according to the Department of Statistics Malaysia (DoSM), would be the highest since the fourth quarter of 2022 (7.4%).
For the first half of 2024, it said, GDP increased by 5% compared to 4.1% in the same period last year.
Malaysia’s economy is expected to continue its growth momentum, supported by domestic and export-driven factors, with a positive outlook for the remainder of the year.
The increase in household consumption expenditures was spurred by the festive and school holidays as well as the payment of Sumbangan Tunai Rahmah Phase 2 in April. Furthermore, contributors withdrew a total of RM6.98 billion from Account 3 (Flexible Account) of the Employees Provident Fund (EPF) as of June to support short-term financial needs.
According to the Chief Statistician of Malaysia, Datuk Seri Dr Mohd Uzir Mahidin, the estimated growth for the second quarter is in line with the latest indicators such as the Industrial Production Index, which rose 6.1% and 2.4%, respectively in April and May compared to the previous year.
Meanwhile, the sales value of wholesale and retail increased 6.6% in April and 7.1% in May on a year-on-year basis.
In the external sector, total trade, exports and imports experienced increases compared to the same period last year. Other factors include increases in tourist arrivals as well as oil palm production, and the progress of mega projects.
Mohd Uzir said, “The economic performance in this quarter was driven by the services sector, with most key sectors showing better growth compared to the previous quarter. The services sector further increased to 5.6% (Q1’24: 4.7%), bolstered by wholesale & retail trade, transportation & storage and finance & insurance sub-sectors.”
The manufacturing sector grew to 4.7% from 1.9% in the last quarter, supported by growth in all sub-sectors, mainly non-metallic mineral products, basic metal & fabricated metal products and Petroleum, chemical, rubber & plastic products.
Furthermore, the construction sector maintained double-digit growth in Q2’24, with expansion of 17.2% (Q1’24: 11.9%), which was driven by strong performance across all sub-sectors, notably in civil engineering and specialised construction activities.
“The griculture sector rose 7.1% (Q1’24: 1.6%) in this quarter, contributed by remarkable growth in the oil palm sub-sector. Meanwhile, the mining and quarrying sector eased to 3.3% as against 5.7% in the previous quarter, attributed to a moderation in the natural gas sub-sector,” said Mohd Uzir.
