Malaysia 3Q GDP grew by 3.3%

IN the third quarter of 2023, Malaysia’s economy expanded by 3.3%, driven by resilient domestic demand, with household spending supported by employment and wage growth.

Investment activity thrived due to multi-year projects.

However, exports faced challenges from weak external demand, partially offset by a recovery in inbound tourism.

The services, construction, and agriculture sectors contributed to growth, while manufacturing declined.

Headline inflation moderated to 2%, and core inflation declined to 2.5%, influenced by factors like fresh food and fuel.

Exchange rates were affected by global monetary policy expectations, leading to a slight depreciation of the Malaysian ringgit.

Credit growth to the private non-financial sector improved, particularly in business loans and outstanding corporate bonds.

Looking ahead, despite external challenges, Malaysia’s economy is projected to grow around 4% in 2023 and 4-5% in 2024, driven by domestic demand and supported by various economic factors.

Tourist arrivals and spending are expected to improve, and investment will be sustained by infrastructure projects and Budget 2024 initiatives.

However, downside risks include weaker external demand and commodity production declines, while upside factors include robust tourism, E&E sector recovery, and efficient implementation of investment projects.

Headline and core inflation are expected to remain moderate, with risks tied to domestic policies, global commodity prices, and financial market developments. – TMR / pic MUHD AMIN NAHARUL