KUALA LUMPUR (Oct 21): Malaysia’s economy may have expanded faster than expected in the third quarter, thanks to growth in the services, manufacturing and construction sectors, official flash estimates showed.
Gross domestic product (GDP) likely rose 5.3% in the July-Sept quarter from a year earlier, according to the Department of Statistics Malaysia’s advance estimates released on Monday. That compares with the median 5.1% rise predicted in a Bloomberg survey. In the second quarter, the economy grew 5.9%.
The stable labour market, moderate inflation, accommodative fiscal and monetary policies, as well as continuous recovery in tourism are expected to contribute to the expansionary momentum of the domestic economy, said chief statistician Datuk Seri Dr Mohd Uzir Mahidin.
"Additionally, positive trends in consumer spending and rising investment are set to spur the economic growth in this quarter," he said in a statement.
The services sector, which accounts for more than half of the economic output, grew by 5.1% led by wholesale and retail trade, transportation and storage and business services sub-sectors.
The manufacturing sector registered a better year-on-year growth of 5.7% compared with 4.7% in the preceding quarter, mainly supported by electrical, electronic and optical products as well as petroleum, chemical, rubber and plastic products.
Construction activities grew at a faster pace of 19.5%, up from 17.3% in the preceding quarter, following strong performance in all segments, mainly specialised construction activities and non-residential buildings.
However, the agriculture sector grew at a slower pace of 4% compared with 7.2% in the second quarter, while the mining and quarrying sector declined 3.4% from 2.7% in the previous quarter.
Malaysia’s economy likely grew 5.1% in January to September 2024, compared with 3.8% in the same period last year. The detailed and comprehensive analysis for third-quarter GDP data will be released on Nov 15.