The strong growth is due to the resumption of economic and social activities as well as the increase of tourists’ arrival
by ANIS HAZIM / pic TMR File
MALAYSIA’S GDP in the third quarter of 2022 (3Q22) continued to expand by 14.2% from 8.9% in the previous quarter, reflected by the lower base in 3Q21, according to the Department of Statistics Malaysia (DoSM).
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the strong growth was due to the resumption of economic and social activities as well as the increase in the number of tourist arrivals resulting from the reopening of international borders.
On a quarter-on-quarter (QoQ) seasonally adjusted basis, the economy grew by 1.9% in 3Q22 from 3.5% previously.
Moreover, the monthly economic performance strengthened to 15.8% in July, followed by August at 15.3% and moderated to 11.6% in September 2022.
“Overall, the economy posted a growth of 9.3% in 3Q22 from 2.9% in 3Q21 for the first three quarters of 2022,” Mohd Uzair said in a statement recently.
The growth in 3Q22 was also attributed by both the services and manufacturing sectors which contributed 82% of Malaysia’s GDP.
On QoQ, the services sector has further increased by 16.7% as compared to 12% in 2Q22.
“The services and manufacturing sectors have surpassed the pre-pandemic level of 3Q19 by 6.6% and 15.9%, respectively,” he said.
However, several activities in the services sector namely food and beverage (F&B), accommodation, real estate and business services remained below their pre-pandemic levels.
“Likewise, the mining and quarrying, construction and agriculture sectors were still below the pre-pandemic level in 3Q19,” he said.
Nonetheless, all sub-sectors registered positive growth in 3Q22, particularly in the wholesale and retail trade, transport and storage, F&B and accommodation, which recorded double-digit growth.
“The strong expansion was also seen in the business services and real estate sub-sectors.
“In terms of seasonally adjusted, this sector grew 1.3% compared to 4.2% in the preceding quarter,” he said.
On manufacturing, the sector accelerated to 13.2% compared to 9.2% in 2Q22, propelled by higher pick up in electrical, electronic and optical products, followed by transport equipment, other manufacturing and repair and non-metallic mineral products, basic metal and fabricated metal products sub-sectors.
“Concurrently, petroleum, chemicals, rubber and plastics products sub-sectors turned around to 4.1% from 0.9% in 2Q22.
“In terms of seasonally adjusted, the manufacturing sector grew 1.8% versus 2.6% in 2Q22.
“The mining and quarrying sector rebounded 9.2% in 3Q22 from 0.5% in 2Q22,” it said.
Notably, the growth was supported by the robust performance in all sub-sectors, mainly from natural gas (13.6%) followed by crude oil and condensate (2.5%).
“In terms of seasonally adjusted, this sector rose 7.5% compared to 0.3% in the previous quarter,” he added.
Meanwhile, the construction sector expanded to 15.3% from 2.4% in the preceding quarter, driven by non-residential buildings and specialised construction activities.
Agriculture sector also turned around 1.2% from a decline of 2.4% in 2Q22, underpinned by the oil palm (5.1%), fishing (3.8%) and livestock (2.5%) sub-sectors.
“In terms of seasonally adjusted, both the construction and agriculture sectors grew by 0.8% and 2.5%, respectively,” it said.
Furthermore, all components of expenditure registered positive growth in 3Q22, fuelled by private final consumption expenditure and gross fixed capital formation.
“Private final consumption expenditure which constituted 61.5% of GDP in 3Q22 registered a sturdy growth of 15.1%, backed by higher consumption in the transport, restaurants and hotels, and recreation services and culture,” he said.
In terms of seasonally adjusted, the overall performance of private final consumption expenditure contracted 1.2% from 6.8% in previous quarter.
Gross fixed capital formation (GFCF) increased 13.1% from 5.8% in 2Q22, while seasonally adjusted grew 2% from 1.3% previously.
“The gradual recovery of the GFCF encouraged a higher economic capacity, thus increasing potential output in the long run,” he noted.
Meanwhile, government final consumption expenditure grew 4.5% from 2.6% in 2Q22, attributed to the expansion in supplies and services in this quarter.
“This sector rebounded to 4.3% from 3.1% in 2Q22 in terms of seasonally adjusted,” he said.
Both exports and imports also accelerated to 23.9% from 10.4%, and 24.4% from 14%, respectively, following the higher trade of goods and services.
“Consequently, net exports turned around to 18.7% compared to a decrease of 28.7% in the preceding quarter,” he added.