KUALA LUMPUR: The exceptional economic achievement during the third quarter (Q3) of 2022 implies that Malaysia's gross domestic product (GDP) is on track to surpass pre-pandemic growth in 2022, the Finance Ministry (MoF) said.
The ministry said the projection was supported by an expansion in domestic demand mainly from household spending in line with the recovery of the labour market and income prospects.
"In addition, the contribution of the tourism-related sector to domestic demand is expected to recover following an increase in the number of tourist arrivals.
"The acceleration of infrastructure projects with high multiplier effects, robust growth in private investment as well as strong external demand especially from major trading partners will further strengthen the economy," MoF said in a statement.
As a highly open economy, the ministry said, Malaysia's economic prospect was dependent on global economic developments.
It added that economic pressures, most notably an increase in global inflation, were due to continued price increases in commodity, food and raw materials, besides prevailing supply chain issues partly due to the tension between Russia and Ukraine, may raise the operating and input costs to businesses.
The risk of tighter global financial conditions and rising cost of living may pose as challenges to the recovery efforts.
MoF said Malaysia's economy had started to experience the effects of global slowdown, particularly from the advanced countries.
Nonetheless, it said Malaysia's near-term growth outlook remained resilient with sound macroeconomic fundamentals, stable financial conditions as well as a broad-based and diversified economic structure.
"Various measures will be continued to uplift the country's economic potential for Malaysia to remain as an attractive investment destination as well as promote more sustainable and inclusive economic growth for all," it added.
Malaysia's economy continues to build on the momentum of economic recovery, delivering even faster growth of 14.2 per cent in Q3 2022, contributed by robust domestic and external
demand as well as improved labour market.
Overall, the country's GDP expanded by 9.3 per cent during the first nine months of 2022.