KUALA LUMPUR: Malaysia's economy is forecast to grow by 5.8 per cent in the second quarter of 2024 (1Q 2024) based on advance estimates released by the Department of Statistics Malaysia (DOSM) today.
The growth would be the highest recorded since the fourth quarter of 2022, which stood at 7.4 per cent.
DOSM chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement, the estimated growth for this second quarter was in line with the increase seen in indicators such as the Industrial Production Index, wholesale and retail sales value and trade.
He said the increase in tourist arrivals as well as oil palm production and progress in mega projects also helped.
Mohd Uzir said growth in the quarter was driven by a 5.6 per cent growth in the services sector, 4.7 per cent growth in the manufacturing sector and 17.2 per cent growth in the construction sector.
He added that the agriculture sector rose 7.1 per cent in the quarter, contributed by remarkable growth in the oil palm sub-sector.
While the mining and quarrying sector contracted 3.3 per cent due to a moderation in the natural gas sub-sector.
DOSM will release the preliminary GDP for 2Q 2024 August 16, 2024.
DOSM said Malaysia's economy is expected to continue its growth momentum, supported by domestic and export-driven factors, with a positive outlook for the remainder of the year.
The increase in household consumption expenditure was spurred by the festive and school holidays as well as the payment of Sumbangan Tunai Rahmah (STR) Phase 2 in April 2024.
Furthermore, a total of RM6.98 billion was withdrawn from Account 3 (Flexible Account) of the Employees Provident Fund as of June 2024 to support short-term financial needs.