KUALA LUMPUR: Malaysia's economy is still robust after the advance gross domestic product growth of 5.1 per cent in the third quarter of 2024 is slightly below the 5.9 per cent recorded in the second quarter.
The 5.1 per cent surpassed market expectations, according to CIMB Securities.
"This highlights the resilience of the Malaysian economy, with sustained contributions from key sectors, particularly manufacturing, construction and services."
CIMB Securities noted that the construction sector recorded a notable 19.5 per cent growth YoY in 3Q24, up from 17.2 per cent in the previous quarter.
This was fuelled by robust activity across non-residential buildings and specialised construction and government infrastructure investments and initiatives.
This is critical as the 2025 Budget emphasises infrastructure development as a key priority to enhance connectivity and support regional economic growth.
The service sector posted a solid growth rate of 5.1 per cent YoY.
CIMB Securities said this is aligned with the 2025 Budget 2025 aims to bolster the sector through initiatives to enhance the tourism sector including marketing campaigns and support for small and medium enterprises in the hospitality sector.
CIMB Securities pointed out that the agriculture and mining sectors are facing challenges.
Agriculture slowed to 4.0 per cent from 7.2 per cent in the previous quarter, primarily due to reduced palm oil production and a contraction in the fisheries sub-sector.
Mining activity contracted 3.4 per cent in 3Q24, dragged down by lower output in natural gas and crude oil extraction.
Despite external challenges such as geopolitical tensions and a softer global manufacturing recovery, Malaysia's economy is projected to remain on track with CIMB Securities expecting a 5.2 per cent expansion in 2024 and 5.0 per cent in 2025.