DOSM ESTIMATES MALAYSIA’S GDP TO EXPAND BY 5.8 PER CENT IN 2Q

KUALA LUMPUR, July 19 (Bernama) -- Malaysia’s economy is estimated to expand by 5.8 per cent in the second quarter of 2024 (2Q 2024), up from 4.2 per cent in the previous quarter, and the highest since 4Q 2022’s 7.4 per cent, 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 per cent 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 today.  

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“Furthermore, a total of RM6.98 billion was withdrawn from Employees Provident Fund (EPF) Account 3 (Flexible Account) as of June 2024 to support short-term financial needs,” he said.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 per cent and 2.4 per cent 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 per cent in 2Q 2024 (1Q 2024: 4.7 per cent), bolstered by wholesale and retail trade, transportation and storage and finance and insurance sub-sectors.

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

Mohd Uzir said the manufacturing sector grew to 4.7 per cent in 2Q 2024 from 1.9 per cent 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 per cent growth, driven by strong performance across all sub-sectors, notably in civil engineering and specialised construction activities versus 11.9 per cent in 1Q 2024.

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

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

-- BERNAMA