MALAYSIA’S economy experienced a robust surge in the first quarter of 2024, surpassing expectations and signalling promising prospects for further growth.
With a notable expansion of 4.2%, compared to 2.9% in the previous quarter, the nation’s gross domestic product (GDP) outperformed Bloomberg’s consensus forecast of 3.9%. Prime Minister Datuk Seri Anwar Ibrahim attributed this success to the effective implementation of government policies and robust economic management.
“In spite of the turbulent global economy, Malaysia’s economy has performed strongly. Within the first full year in office, the Madani government initiated a full set of policy reforms and remain committed to our reform agenda to transform the economy and public delivery,” added Anwar, who is also the Finance Minister.
“The government is committed to see through the policy implementation set forth in the Ekonomi Madani framework in the months and years ahead. The optimism springing in the domestic capital markets, exemplified by the FBM KLCI etching new highs, reflects global investors’ renewed interest in Malaysia’s reform narrative.”
From the supply side, all sectors contributed to economic growth in Q1 2024, supported by favourable economic fundamentals:
- The labor market exhibited positive momentum, with total employment rising by 2.1% to 16.4 million people, contributing to a low unemployment rate of 3.3%.
- Inflation remained benign at 1.7%, compared to 1.6% in the previous quarter.
- The Industrial Production Index (IPI) increased by 3.3%, with growth across all sub-sectors, particularly in electricity, mining, and manufacturing.
- Construction saw a substantial growth of 14.2%, driven by expansion in civil engineering, specialised trade activities and residential buildings.
On the external front, Malaysia’s total trade expanded by 7.1%, reaching RM690.6 bil with a trade surplus of RM34.2 bil. The current account of the Balance of Payments recorded a surplus of RM16.2 bil, supported by higher tourist arrivals and net foreign direct investment of RM5.5 bil.
Moreover, the momentum in economic transformation signifies Malaysia’s strong fundamentals and investor confidence, bolstered by the government’s policies.
The Ekonomi Madani framework along with measures outlined in Belanjawan 2024 and commitments to responsible fiscal management are driving positive results and attracting quality investments, according to the Finance Ministry (MOF).
Furthermore, the MOF asserted that efforts would focus on strengthening public service delivery and increasing productivity to ensure the effective execution of pro-economic growth policies and the achievement of the nation’s aspirations for sustainable development. – May 17, 2024
Main photo credit: The Edge Malaysia
