Malaysia's economy expanded 5.6 percent in the quarter to December, taking growth last year to 4.2 percent, the Statistics Department said today.

The department said in a statement growth in the first, second and third quarters were revised to 1.3, 4.1 and 5.8 percent respectively, up from 1.1, 3.9 and 5.6 percent previously.

With this, "Malaysia's economic growth averaged a robust 4.2 percent for the year as a whole," it said.

Economists said the fourth quarter gross domestic product (GDP) figure was better than market expectations, largely due to strong domestic demand and sustained government spending.

In the December quarter, the manufacturing sector logged its third consecutive increase to grow 5.8 percent.

This was largely due to positive growth in textiles, wearing apparel and leather products, wood and paper products, and printing and publishing for the first time since the second half of 2000.

But growth in fabricated metal products, electronics, machinery and equipment fell to 7.8 percent, down from 14.1 percent in the third quarter, due to lower production of electronics and transport equipment.

Labour shortage

Agriculture sector grew 2.5 percent boosted by an unprecedented 18.8 percent growth in rubber, mining saw its highest growth of 9.5 percent amid higher crude petroleum and natural gas output while services was up 4.9 percent.

But a labour shortage subdued construction growth at 0.5 percent, down from 2.6 percent in the previous three months, the department said.

In the final quarter, government spending was up 7.5 percent while private consumption grew 4.5 percent.

Fixed capital formation, which involved public and private investment, rose sharply by 9.8 percent, a second consecutive increase from 2.6 percent in the third quarter.

For the full year, manufacturing grew 4.1 percent, agriculture was up 0.3 percent, construction held steady at 2.3 percent, mining remained strong at 4.5 percent and services 5.7 percent. AFP