by HIDAYATH HISHAM / pic TMR

THE Department of Statistics, Malaysia (DoSM) today released the 12th edition of the Malaysian Economic Statistics Review (MESR) for 2023. 

It focuses on key economic statistics published in October 2023 and upcoming data releases expected in November. 

Additionally, this MESR includes an article titled ‘Assessment of Sustainable Development Goals (SDG) Performance Indicators in Malaysia 2022’ which evaluates Malaysia’s progress on SDG metrics and the country’s commitment to the 2030 Sustainable Development Agenda.

Considering high inflation and cautious global growth, the Asian Development Bank (ADB) forecasts a 4.9% GDP growth rate across developing Asia in 2023 and 4.8% in 2024. 

For Malaysia specifically, the ADB projects an economic expansion of 4.2% in 2023 and 4.6% in 2024 amid regional and global headwinds. 

Chief Statistician Datuk Dr Mohd Uzir Mahidin said assessing the country’s economic landscape in October 2023, Malaysia’s Industrial Production Index (IPI) upsurge to 2.7% year-on-year (YoY) growth, a substantial improvement from the preceding month’s negative 0.5%.

“This marked the most significant upswing since May 2023, predominantly driven by the robust performance in the Mining sector, which saw an 8.7 growth. 

“Simultaneously, the electricity and manufacturing sectors sustained their positive trends, recording increases of 5.8 % and 0.9% respectively,” he noted.

He added that the manufacturing sector registered a 1.4% decline in sales value in October 2023, indicating a smaller contraction as compared to the 2.4% drop in the preceding month. 

This downturn was influenced by a continued decrease in the petroleum, chemical, rubber and plastic products sub-sector, witnessing a 9.5% decline.

Additionally, the electrical and electronics products sub-sector faced a 2.7% reduction.

DoSM reported that monthly sales value for the wholesale and retail trade sector rose 6.5% YoY to RM142.3 billion in October 2023. 

Growth was driven by a 5.7% expansion in wholesale trade, reaching RM63.3 billion, while motor vehicles and retail trade climbed 19.1% and 3.9% respectively.  

On inflation, Malaysia’s consumer price index increased 1.8% in October 2023 versus a year ago, with the index at 130.9 against 128.6 previously. 

Key drivers were restaurants and hotels at 4.6%, food and non-alcoholic beverages at 3.6%, and furnishings, household equipment at 1.4%. 

Headline inflation ticked slightly lower to 1.5% in November, although still elevated from November 2022’s base. 

Meanwhile, producer prices declined 0.3% and 1.5% in October and November respectively.

Malaysia’s total trade shrank 2.4% YoY to RM239.5 billion in October 2023, as exports dropped 4.4% to RM126.2 billion and imports dipped 0.2% to RM113.3 billion. 

Consequently, the trade surplus narrowed 30.3% annually to RM12.9 billion.  

On labour, employed persons grew 2% year-over-year to 16.40 million in October 2023. 

The labour force participation rate rose 0.4 percentage points to 70.1%, while the unemployment rate eased 0.2 percentage points versus a year prior to 3.4% in October.

Mohd Uzir noted that Malaysia’s Leading Index declined 0.2% YoY to 109.2 points in October 2023, down from 109.4 points previously. 

The drop was primarily driven by a 33.6% contraction in real imports of semiconductors, marking ten straight months of declines. However, the number of housing units approved saw robust 40.0% growth on the upside. 

“Analysing the LI’s smoothed growth rate for October 2023 which remained below the 100.0 points trend, the LI signals a modest growth outlook in the upcoming months. 

“This is supported by a positive private consumption and a favourable labour market,” he noted.

He added that in essence, the country’s economic outlook in 2023 highlights distinct growth trends in various sectors, challenges in external trade, and a combination of positive and cautionary signals. 

“These factors collectively suggest a resilient but nuanced economic environment,” he said.