Malaysia's gross domestic product (GDP) increased 5.9% year-on-year in the second quarter of 2024, breaking the strongest growth rate in the past five quarters.
Bank of Malaysia Governor Dato' Abdullahi pointed out at a press conference today that strong economic growth in the next quarter was due to good labor market conditions and increased policy support, household spending increased.
Furthermore, the further recovery in commodity exports and the number of tourists, combined with the strong expansion of investment activities, have also injected momentum into the Chinese economy.
In the second quarter, with the exception of the mining industry, which slowed to 2.7%, all other sectors strengthened year on year. Among them, the construction industry grew the most impressive by 17.3%.
This was followed by agriculture (+7.2%), services (+5.9%), and manufacturing (+4.7%).
Abdulacil also pointed out that various indicators show that Malaysia's economic growth prospects can continue until the second half of the year, such as a further recovery in global orders to drive export performance, issuing more projects, and improving business confidence.
Overall, Malaysia's growth this year will be driven by strong domestic spending and external demand.
Despite strong performance in the second quarter, the Bank of Malaysia is still maintaining its forecast of 4% to 5% growth for the full year of this year.
In terms of inflation, overall and core inflation in the second quarter both increased by 1.9%, slightly higher than 1.7% and 1.8% in the first quarter, respectively.
“The main reason is rising inflation in housing and utilities, and higher inflation in information and communication services.”
Abdullahi said that the outlook for inflation is still being affected...