KUALA LUMPUR: Malaysia is set to achieve the gross domestic product growth target of 4-5% for 2023 based on the good economic momentum seen so far, the Department of Statistics Malaysia (DoSM) said.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said consumer spending sentiment is normally at an above average level in the fourth quarter (Q4) of the year compared with other quarters.
“It is during Q4 that consumers tend to spend more than usual, including for back-to-school, new year and festive spending, with demand for goods being higher.
“Demand is the largest component of GDP so we expect there’s room for growth in Q4 GDP performance,” he told Bernama prior to being interviewed on Bernama TV’s Ruang Bicara programme on Wednesday night.
Asked whether GDP growth for Q4 is forecast to be higher than in Q3, Mohd Uzir said it should be, gauged based on available data.
Looking at the Industrial Production Index in October, Mohd Uzir said, the mining, electricity and manufacturing sectors recorded growth, while Malaysia’s trade expanded and continued to show a surplus.
It was reported that trade surplus reached RM12.87 billion in October, marking the 42nd consecutive month of trade surplus since May 2020.
At the same time, unemployment has seen a decline, Mohd Uzir said. The country’s unemployment rate in October stood at 3.4%.
“So the data for October signals that the Malaysian economy is moving towards growth. Up to this month (January), we have seen economic activities in November and December remaining in growth territory .
“GDP growth for the first three quarters combined was already 3.9%. Therefore, I expect the country’s economic growth for 2023 is going in the direction that the government has targeted,” he said.
According to Bank Negara Malaysia, the Malaysian economy grew by 3.3% in the third quarter (second quarter: 2.9%), while overall, the economy expanded by 3.9% in the first three quarters of 2023.
On the Central Database Hub (Padu) which went live on Jan 2, Mohd Uzir said that up to 8pm on Wednesday, the system recorded a total of 396,181 registered users. Malaysians have been given until March 31 to update their information in the system.
Based on the response towards Padu usage to date, he expressed confidence that the target of getting 29 million Malaysian citizens to register will be achieved.
“To ensure that no one is left out from benefitting from the implementation of Padu, the (federal) government will conduct engagement sessions with leadership at the state government level to achieve the target set,” he said.
He added that feedback received by DoSM and its staff on the ground so far has indicated positive reception to the system in the rural areas, aided by the efforts of the Information Department. – Bernama
