KUALA LUMPUR, May 17 — The Malaysian economy expanded at a higher rate of 4.2 per cent in the first quarter (1Q) of 2024 from 2.9 per cent in 4Q 2023, driven by stronger private expenditure and positive turnaround in exports.
The gross domestic product (GDP) grew by 5.6 per cent in 1Q 2023.
Bank Negara Malaysia governor Datuk Abdul Rasheed Ghaffour said household spending was higher amid continued growth in employment and wages.
“Better investment activities were supported by higher capital spending by both the private and public sectors,” he said when announcing the 1Q 2024 GDP performance here today.
Rasheed also noted exports rebounded amid higher external demand.
On the supply side, most sectors registered higher growth.
The stronger growth in the services sector was driven by higher retail trade activities and continued support from the transport and storage subsector, he said.
Statistics Department (DOSM) chief statistician Datuk Seri Mohd Uzir Mahidin said the services sector steered overall performance in 1Q 2024, as well as the manufacturing sector, which showed an expansion after recording a decline in the previous quarter.
“In terms of sectoral performance, the services sector expanded by 4.7 per cent in 1Q 2024 (Q4 2023: 4.1 per cent), contributed by the wholesale and retail trade (3.8 per cent) and transportation and storage (11 per cent) sub-sectors.
“The manufacturing sector increased by 1.9 per cent in 1Q after recording a contraction of 0.3 per cent in the previous quarter, driven by domestic-oriented industries, mainly the manufacturing of non-metallic mineral products, basic metal and fabricated metal products (7.2 per cent),” he said.
In addition, the mining and quarrying sector showed better growth of 5.7 per cent after recording a rise of 3.5 per cent in 4Q 2023, backed by all sub-sectors, primarily the natural gas sub-sector, which expanded by 9 per cent.
Uzir said the agriculture sector grew by 1.6 per cent in the 1Q 2024 (Q4 2023: 1.9 per cent) led by oil palm and livestock sub-sectors, while the construction sector registered an encouraging growth of 11.9 per cent (Q4 2023: 3.6 per cent).
He also mentioned both exports and imports increased by 5.2 per cent (4Q 2023: -7.9 per cent) and 8.0 per cent (4Q 2023: -2.6 per cent), respectively, after recording negative growth in the preceding quarter, attributed to better external demand.
On inflation, Rasheed said headline inflation remained moderate at 1.7 per cent during the quarter compared to 1.6 per cent in 4Q 2023, while core inflation moderated to 1.8 per cent from 2.0 per cent in 4Q 2023.
He said the modest increase in headline inflation reflects the policy adjustments to water tariffs in February and services tax for high-usage electricity in March, which increased by 20.8 per cent (4Q 2023: 2.1 per cent) and 0.7 per cent (4Q 2023: 0 per cent), respectively.
Meanwhile, core inflation was largely driven by continued easing in the food and beverages segment.
“Inflation pervasiveness edged higher, as the share of Consumer Price Index items recording monthly price increases rose to 44.2 per cent during the quarter (4Q 2023: 36.3 per cent).
“Nonetheless, this remains well below the first quarter long-term average (corresponding 1Q periods in 2011-2019) of 52.2 per cent,” he said.
DOSM published the annual GDP report for 2023, which encompasses the revision of GDP data for 2021, 2022 and 2023 at 3.3 per cent, 8.9 per cent and 3.6 per cent, respectively.
The revisions followed updates to companies’ annual reports, the Annual Establishments Survey 2021, the Economic Census 2022, and secondary data from agencies.
— Bernama
