Bank Negara Malaysia announced growth in the Gross Domestic Product (GDP) report of 4.2% for the first quarter of 2024.
In their statement, the central bank said the 4.2% growth rate was driven by stronger private spending and a positive recovery in export activity.
In the fourth quarter of 2023, Malaysia recorded a GDP growth rate of 2.9% compared to the first quarter of the year at 5.6%.
DoSM Head of Statistics, Uzir Mahidin said household spending was higher in the first quarter of 2024 amid continued growth in employment and wages.
Improved investment activity was supported by high capital expenditure for both the private and public sectors.
The export sector picked up again amid higher external demand. On the supply side, most sectors recorded higher growth.
He also said that manufacturing activity also increased with the rebound beating both the electrical and electronic (E&E) and non-E&E industries.
Stronger growth in the services sector was driven by higher retail trade activity and continued support from the transport and storage sub-sectors.
On a quarter-to-quarter seasonally adjusted basis, the economy showed a growth of 1.4%.
Meanwhile, headline inflation for the first quarter of 2024 remained moderate at 1.7% compared to 1.6% in the fourth quarter of 2024.
BNM Governor Abdul Rasheed Ghaffour said the moderate increase in headline inflation reflected policy adjustments to water tariffs which increased by 20.8% in February and the high consumption service tax for electricity in March which increased by 0.7%.
He also said that the pressure on the local currency has decreased following initiatives coordinated by the government and BNM with government-related companies and government-related investment companies.
He added that the ringgit performed better as engagement with corporates and exporters gained traction. It translates into larger and more consistent flows into the foreign exchange market.
