Malaysia’s economy demonstrated notable growth in the third quarter, driven primarily by the services sector, according to advance estimates. The Department of Statistics reported that gross domestic product (GDP) increased by 3.3% during this period. This growth was mainly attributed to the services sector, which saw a growth rate of 5.1% compared to 4.7% in the previous quarter.
While the agriculture sector also showed a slight recovery from a decline in the preceding quarter, the mining & quarrying and manufacturing sectors experienced contraction.
Compared to the second quarter, Malaysia’s third-quarter GDP growth of 3.3% was higher than expected by economists at Kenanga Investment Bank. These economists had predicted a growth rate of 1.7% for the third quarter, citing weakened exports and lower commodity prices as potential factors limiting growth. Nevertheless, they had also anticipated that resilient domestic demand, increased tourist arrivals, and spending would contribute to supporting the economy.
However, the latest data reveals a significant decrease in growth during the first nine months of 2023 compared to the previous year. Taking into account the third-quarter numbers, the Department of Statistics reported a nine-month growth rate of 3.9% for 2023, significantly lower than the 9.2% growth rate observed during the same period in the previous year.
These GDP figures follow recent data showing a decline in Malaysia’s exports in September due to sluggish global demand and uncertainty surrounding commodity prices, particularly affecting electrical, petroleum, and palm-oil products.
The final data for third-quarter GDP will be released on November 17th.
By Ying Xian Wong
