DOSM ESTIMATES MALAYSIA'S GDP TO EXPAND BY 5.8% IN 2Q

Malaysia's economy is estimated to expand by 5.8% in the second quarter of 2024 (2Q 2024), up from 4.2% in the previous quarter, and the highest since 4Q 2022's 7.4%, according to Statistics Department Malaysia (DOSM).

For the 1H 2024, chief statistician Datuk Seri Mohd Uzir Mahidin said gross domestic product (GDP) rose by 5.0% versus 4.1 a year ago.

“Malaysia's economy is expected to continue its growth momentum, supported by domestic and export-driven factors, with a positive outlook for the rest of the year,” he said in a statement. 

The rise in household consumption expenditure was spurred by the festive and school holidays and the Sumbangan Tunai Rahmah (STR) Phase 2 payment in April 2024, he said.

“Furthermore, a total of RM6.98 billion was withdrawn from Employees Provident Fund (EPF) Account 3 (Flexible Account) as of June 2024 to support short-term financial needs,” he said.

He noted that 2Q's estimated growth was in line with the Industrial Production Index, which rose 6.1% and 2.4% in April and May 2024, respectively, versus a year ago.

The services sector drove economic performance for the quarter under review, with most key sectors showing better growth than the previous quarter.

The statement said the services sector rose to 5.6% in 2Q 2024 (1Q 2024: 4.7%), bolstered by wholesale and retail trade, transportation and storage and finance and insurance sub-sectors.

Wholesale and retail sales value rose by 6.6% in April and by 7.1% in May year-on-year.

Mohd Uzir said the manufacturing sector grew to 4.7% in 2Q 2024 from 1.9% in the previous quarter, supported by growth in mainly non-metallic mineral products; basic metal and fabricated metal products and petroleum; chemical, rubber and plastic products.

The construction sector maintained a double-digit 17.2% growth, driven by strong performance across all sub-sectors, notably in civil engineering and specialised construction activities versus 11.9% in 1Q 2024.

“The agriculture sector rose 7.1% in the quarter under review against 1.6% in 1Q 2024, due to remarkable growth in the oil palm sub-sector.

The mining and quarrying sector eased to 3.3% versus 5.7% in 1Q 2024 as the natural gas sub-sector moderates.