GDP grew 3.1pct in 2021, backed by Q4 rebound
Malaysia's economy rebounded 3.6 percent in the fourth quarter of 2021 (Q4 2021), driven by higher external demand, according to the Department of Statistics (DOSM).
Overall, Malaysia’s economic performance in 2021 revealed a recovery momentum with a growth of 3.1 percent, compared to a decline of 5.6 percent in 2020, it said.
“From the current economic standing, the performance in 2021 is still below its pre-pandemic level in 2019, however...
Malaysia's economy rebounded 3.6 percent in the fourth quarter of 2021 (Q4 2021), driven by higher external demand, according to the Department of Statistics (DOSM).
Overall, Malaysia’s economic performance in 2021 revealed a recovery momentum with a growth of 3.1 percent, compared to a decline of 5.6 percent in 2020, it said.
“From the current economic standing, the performance in 2021 is still below its pre-pandemic level in 2019, however, the economic performance in the fourth quarter surpassed that of Q4 2019 by 0.01 percent,” the department said in a statement on Malaysia’s economic performance for 2021 released today.
Chief statistician Mohd Uzir Mahidin said the economic performance in Q4 2021 on the supply side was primarily driven by the manufacturing, services and agriculture sectors, while on the demand side, all expenditure components experienced positive performance except for gross fixed capital formation.
“In terms of sectoral performance, the manufacturing sector was the main contributor, growing strongly by 9.1 percent (Q3 2021: -0.8 percent) in the fourth quarter, led by electrical, electronic and optical products (16.4 percent), followed by petroleum, chemical, rubber and plastic products (6.5 percent).
On a quarter-on-quarter seasonally adjusted basis, the overall manufacturing sector increased 8.3 percent (Q3 2021: -1.8 percent).
DOSM said the services sector rose by 3.2 percent (Q3 2021: -4.9 percent) in Q4; on a quarter-on-quarter seasonally adjusted basis, this sector rebounded 7 percent.
The performance was attributed to the private services sub-sector, which recorded an increase of 2.7 percent (Q3 2021: -6.8 percent), supported by the information and communication (6.8 percent), transportation and storage (11.7 percent) and finance and insurance (4 percent) sub-sectors, it said.
In addition, wholesale and retail trade recorded a growth of 1.3 percent while the real estate, business services and private education sub-sectors remained in a declining trend.
DOSM said the agriculture sector turned around 2.8 percent (Q3 2021: -1.9 percent) in the quarter, backed by the rebound in palm oil (4.8 percent) and the increase in other agriculture (5.4 percent) sub-sectors.
The agriculture sector recorded a marginal increase of 0.2 percent on seasonally adjusted terms, the mining and quarrying sector contracted 0.9 percent (Q3 2021: -3.6 percent) influenced by the crude oil and condensate sub-sector which declined 6.5 percent (Q3 2021: -8 percent) during the quarter.
Commenting on the demand side, Uzir said the private final consumption expenditure, which contributed 58 percent to GDP in Q4, rebounded 3.7 percent (Q3 2021: -4.2 percent) attributed to the higher consumption in food and non-alcoholic beverages (5.1 percent), communication (12.6 percent), and housing, water, electricity, gas and other fuels (2 percent).
"Furthermore, consumption of restaurants and hotels (3.8 percent) and transport (2 percent) grew in this quarter. On seasonally adjusted quarter-on-quarter terms, the overall performance of private final consumption expenditure posted an increase of 6.4 percent,” he said.
Meanwhile, DOSM said the gross fixed capital formation (GFCF) or investment in fixed assets, decreased by 3.3 percent (Q3 2021: -10.8 percent) in the quarter, influenced by the double-digit increase in machinery and equipment (16.4 percent). On a quarterly basis, it registered an increase of 10.9 percent.
The government’s final consumption expenditure moderated to 4.3 percent (Q3 2021: 8.1 percent), supported by spending on supplies and services attributed to the health-related expenditure in this quarter.
"The increase in consumption on health services was driven by the government’s effort in the Covid-19 booster roll-out programme. On a quarter-on-quarter seasonally adjusted basis, the government’s final consumption expenditure decreased 6 percent (Q3 2021: 5.2 percent)," it added.
Uzir said both exports and imports accelerated to 13.3 percent (Q3 2021: 5.1 percent) and 14.6 percent (Q3 2021: 11.7 percent) respectively following the higher trade of goods and services.
"Therefore, net exports rose by 2.6 percent compared to a decrease of 37.5 percent in the preceding quarter driven by higher external demand," he said.
- Bernama
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