Resilient spending, investments propel M'sia's 2Q economy to 5.9pct

Malaysia’s economy saw a robust expansion of 5.9 percent in the second quarter of 2024 (2Q 2024) exceeding the earlier prediction of 5.8 percent.

This, according to Bank Negara Malaysia (BNM) governor Abdul Rasheed Ghaffour, was bolstered by resilient household spending, vigorous investment activities and a significant boost in tourism arrivals.

Rasheed said the central bank views Malaysia’s growth as on track to end the year near the upper end of the 4.0-5.0 percent forecast range.

The country’s economy expanded by 4.2 percent in 1Q 2024, bringing the first half’s growth to an average of 5.05 percent. The gross domestic product (GDP) grew by 2.9 per cent in 2Q 2023.

“The 5.9 percent GDP growth in 2Q of 2024 is the highest since 4Q in 2022,” he said at the second quarter GDP press conference in Kuala Lumpur today.

In terms of sectoral performance, Rasheed noted the services sector expanded by 5.9 percent in 2Q 2024 compared to 4.8 percent in 1Q 2024, contributed by a broad-based improvement in consumer and business-related services.

“The manufacturing sector increased by 4.7 percent in 2Q 2024 after recording an expansion of 1.9 percent in the previous quarter, driven by higher growth across export and domestic-oriented industries,” he said.

On agriculture, Rasheed said the sector expanded to 7.2 percent in 2Q 2024 versus 1.7 percent in 1Q 2024: 1.7, contributed by stronger production in the oil palm and fisheries subsector.

The construction sector recorded better growth of 17.3 percent in 2Q 2024 compared to 11.9 percent in 1Q 2024, supported by higher activities, particularly in the civil engineering and special trade subsectors.

He added that the mining sector showed moderate growth of 2.7 percent after recording 5.7 percent in 1Q 2024, due to lower growth in the oil and gas subsector following production disruption in May.

- Bernama

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