MALAYSIAN ECONOMY ESTIMATED TO GROW 3.4% IN 4Q 2023 - DOSM

Malaysia's economy is estimated to grow by 3.4% in the fourth quarter of 2023 (4Q 2023) against 3.3 in the previous quarter, said Statistics Department Malaysia (DOSM) on 19th January.

Overall, on an annual basis, Malaysia's economy grew moderately at 3.8% in 2023 after an 8.7% growth in 2022, it added.

Chief statistician Datuk Seri Mohd Uzir Mahidin said the services sector spearheaded the economic performance in 4Q, with all other sectors experiencing positive growth. 

"The services sector grew by 4.7% in 4Q 2023 backed by wholesale and retail trade, transport and storage and business services sub-sectors," he said in a statement. 

The mining and quarrying sector expanded by 3.7% in 4Q 2023, driven across all activities, especially natural gas, and crude oil and condensate.

The construction sector moderated to 2.5% in 4Q 2023 versus 7.2 in the previous quarter while the agriculture sector rose to 1.2% against the previous quarter's 0.8% due to improved oil palm production.

Meanwhile, the manufacturing sector registered a marginal 0.1% growth, supported by the manufacturing of vegetable, animal oils and fats, food processing, non-metallic mineral products, and basic and fabricated metal products.

However, electrical, electronic and optical products, petroleum, chemical, rubber and plastic products declined during 4Q 2023.

Annually, the services sector registered a growth of 5.4% in 2023 versus 10.9 in 2022.

The manufacturing sector recorded a marginal growth of 0.8% in 2023, due to weaker external demand from various countries. 

Accordingly, Malaysia's trade performance showed a declining trend in 2023 in tandem with an 8% fall in exports with a 6.4% decrease in imports. 

"The construction sector improved to 5.8% in 2023 against 5.0 in 2022. The mining and quarrying sector rose 1% and the agriculture sector recorded a marginal growth of 0.5%," it added.