Malaysia's Economy Grows 4.2 Percent in First Quarter
Bank Negara Malaysia (BNM) said in a statement that household spending was higher amid continued growth in employment and wages.
Meanwhile, better investment activities were supported by higher capital spending by both the private and public sectors. Exports also rebounded amid higher external demand.
On the supply side, it said most sectors registered higher growth. The manufacturing sector was lifted by a rebound across both the electrical and electronic (E&E) and non-E&E industries.
The services sector also registered strong growth, driven by higher retail trade activities and continued support from the transport and storage subsector.
On a quarter-on-quarter seasonally-adjusted basis, the Malaysian economy expanded by 1.4 percent.
According to the BNM, growth in 2024 will be driven by resilient domestic expenditure with additional support from the recovery in external demand.
On the domestic front, it said continued employment and wage growth will support household spending.
Meanwhile, improvements in tourist arrivals and spending are expected to continue.
The bank also noted that investment activities will be driven by progress in multi-year projects across private and public sectors, alongside catalytic initiatives announced in national master plans, as well as the higher realization of approved investments.
The growth outlook, however, remains subject to downside risks stemming from weaker-than-expected external demand, further escalation in geopolitical conflicts and larger declines in commodity production domestically.
"Nonetheless, there are upside risks from greater spillover from the tech upcycle, more robust tourism activities and faster implementation of existing and new investment projects," said the BNM.
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