Port Klang, Kuala Lumpur – Malaysia’s economy showed robust growth in the April-to-June period of 2024, surpassing forecasts and marking an improvement from the earlier part of the year. The growth rate for the second quarter was notably higher than the annual growth of 4.2% recorded in the first quarter.
The positive performance in Q2 2024 was attributed to several factors:
- Stronger Household Spending: Increased consumer expenditure has played a crucial role in driving economic expansion.
- Positive Labour Market Conditions: Employment growth has supported higher income levels and consumer confidence.
- Increased Exports and Investment Activities: Both exports and investment have seen significant upticks, contributing to the overall economic growth.
According to Bank Negara Malaysia (BNM) and the Statistics Department, the growth exceeded the 5.8% forecast from a Reuters poll and the government’s advance estimates released last month.
BNM Governor Abdul Rasheed Ghaffour indicated that full-year growth for 2024 is expected to be at the upper end of the central bank’s forecast range of 4% to 5%. He emphasized that household spending will remain a key driver of growth, supported by expanding employment, rising income levels, and robust investment activities.
- Exports: Malaysia’s exports saw a notable rise of 9.1% in April and 7.3% in May but moderated to 1.7% in June. For the first half of 2024, exports grew by 3.9%.
- Ringgit Currency: The Malaysian ringgit has strengthened, recovering from a 26-year low against the US dollar in February. It has gained 3.3% year-to-date, partly due to expectations of US policy rate cuts, which have eased pressure on regional currencies.
Last month, the central bank maintained its key interest rate at 3.00%. BNM noted that inflation remains manageable despite a recent uptick following diesel subsidy cuts in June.
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