Inflation and oil prices key to growth

THE Malaysian economy grew pretty decently in the first three months of the year, mainly supported by still-strong private sector consumption and investments. Consumers were also helped by lower inflation stemming from lower fuel prices.

According to Bank Negara, private consumption expanded at a stronger pace due to stable labour market conditions and higher wage growth. A major support to private consumption came from household spending before the implementation of the goods and services tax (GST).