Malaysia's Economy Will Grow 5.8 Percent In The Second Quarter Of 2024, Highest Since 2022

JAKARTA - Malaysia's Department of Statistics (DOSM) estimates Malaysia's economy will grow 5.8 percent in the second quarter of 2024 and that will be the highest since the fourth quarter of 2022.

Citing Antara, Malaysia's Head of the Department of Statistics Mohd Uzir Mahudin said the forecast was up from 4.2 percent in the previous quarter.

DOSM also estimates that Malaysia's Gross Domestic Product (GDP) in the first semester will increase by five percent compared to the same period the previous year of 4.1 percent.

He said Malaysia's economy is expected to remain at a growth momentum, supported by export domestic factors with positive prospects for the remainder of the 2024 period.

The increase in household spending was driven by the school celebration and holiday season as well as the Rahmah Cash Donation (STR), an initiative to help the underprivileged in facing the challenge of living expenses, Phase 2 in April 2024.

In addition, he said the total RM6.98 billion (around Rp24.11 trillion with an RM1 exchange rate equal to Rp3,455) had been withdrawn from Account 3 (Flexible Account) of the Employee Provision Fund (KWSP) as of June 2024 to support short-term finance.

He said the estimates recorded in the second quarter of 2024 were in line with the latest indicators such as the Industrial Production Index, which increased 6.1 percent and 2.4 percent in April and May 2024 respectively compared to the same period the previous year.

Meanwhile, wholesale and retail sales increased 6.6 percent in April and 7.1 percent in May from year to year.

For the external sector, the number of trade, export and imports has increased compared to the same period last year.

"Other factors include increasing tourist visits, producing palm oil, and advancing project mega development," he said.

The service sector continues to increase by 5.6 percent supported by wholesale and retail trading sub-sectors, transportation and storage, as well as finance and insurance.

The manufacturing sector increased 4.7 percent from 1.9 percent in the previous quarter, supported by growth in sub-sectors, especially non-metal products, basic metals, and fabricated metal products, as well as petroleum, chemicals, rubber and plastic products.

He said that in addition, the development sector continued to grow in double digits, 17.2 percent which was driven by strong achievements in all sub-sectors, especially civil engineering, and special carpentry construction activities.

He also said the agricultural sector increased by 7.1 percent this quarter, supported by encouraging growth from the palm oil sub-sector. Meanwhile, the mining and excavation sectors grew slowly by 3.3 percent compared to 5.7 percent in the previous quarter. due to moderate natural gas sub-sectors.