KUALA LUMPUR: Malaysia's economy grew at 5.9 per cent in the second quarter of 2024 (Q2 2024) supported by stronger domestic demand and further expansion in exports, beating official estimates.
The Department of Statistics Malaysia had released an advance estimate of 5.8 per cent growth in gross domestic product for Q2 2024.
Bank Negara Malaysia (BNM) governor Datuk Abdul Rasheed Ghafour said private consumption grew by 6.0 per cent in the quarter buoyed by positive labour market conditions and larger policy support.
"Other factors that acted as catalysts to growth were further uptick in goods exports and higher tourist arrivals as well as robust expansion in investment activities," Abdul Rasheed told a press conference here today.
BNM said in a statement, headline and core inflation averaged 1.8 per cent in the first half of 2024.
During the quarter, both headline and core inflation edged higher to 1.9 per cent (1Q 2024: 1.7 per cent and 1.8 per cent respectively).
This was largely driven by higher housing and utilities inflation at 3.1 per cent (1Q 2024: 2.6 per cent).
The share of Consumer Price Index (CPI) items recording monthly price increases was higher at 49.4 per cent during the quarter, above the second quarter average from 2011-2019, reflecting in part the price adjustments during the festive season and several policy measures by the government during the period.
Abdul Rasheed said growth in the second half of 2024 will be driven by domestic spending with continued strong support from external demand.
BNM said upside risks to growth include greater spillover from the tech upcycle, robust tourism activities, and faster implementation of existing and new investment projects.
While downside risks to Malaysia's growth prospects stem from a downturn in external demand, an escalation in geopolitical conflicts and lower-than-expected commodity production.
It said headline and core inflation are expected to edge higher in 2H 2024 mainly due to the rationalisation of diesel subsidies.
However, the impact will remain manageable given mitigation measures by the government to minimise cost impact to businesses.
Overall, headline and core inflation for the year are projected to remain within the forecast ranges of 2.0 per cent-3.5 per cent and 2.0 per cent-3.0 per cent respectively.