Malaysia's 5.8% GDP growth in second quarter was beyond expectations, says PM

KUALA LUMPUR: Malaysia has registered growth beyond expectations, with the country’s gross domestic product (GDP) expanding by 5.8% in the second quarter of 2024, said Prime Minister Datuk Seri Anwar Ibrahim.

He stated that they have broken through barriers and achieved results beyond normal expectations.

"This is outside the projections presented by all parties. I thank the people, professionals, and investors for their hard work. This will give us the opportunity to rise as a strong nation," he said in a video posted on social media on Saturday (July 20) morning.

Advance estimates for Malaysia's GDP suggest the economy expanded by 5.8% in the second quarter of 2024.

Anwar added that the Madani government promises better jobs, better training, and better technology towards a digitalised and energy-transitional way of life.

"I am confident that with our cooperation and focus on economic development, we will succeed," he said.

In a statement on Friday (July 19), the Statistics Department said GDP is estimated to have increased by 5% in the first half of 2024, compared to 4.1% in the same period last year.

The department added that the country's economy is expected to continue its growth momentum during the quarter, supported by domestic and export-driven factors, with a positive outlook for the remainder of the year.

Chief statistician Datuk Sri Mohd Uzir Mahidin said the estimated growth for the second quarter was in line with the latest indicators such as the industrial production index, which rose 6.1% and 2.4% in April and May 2024, respectively, compared to the previous year.

Meanwhile, the sales value of wholesale and retail increased by 6.6% in April and 7.1% in May on a year-on-year basis.

"In the external sector, total trade, exports, and imports experienced an increase compared to the same period last year. Other factors include the increase in tourist arrivals, oil palm production, and the progress in the development of mega projects," said Mohd Uzir.

On sector growth, he mentioned that the services sector increased by 5.6%, compared to 4.7% in the first quarter, bolstered by wholesale and retail trade, transport and storage, and finance and insurance sub-sectors.

The manufacturing sector grew by 4.7% from 1.9% in the previous quarter, supported by growth in all sub-sectors, while the construction sector recorded double-digit growth of 17.2%, driven by strong performance in all sub-sectors.

The agriculture sector rose by 7.1% from 1.6% in the first quarter, contributed by remarkable growth in the oil palm sub-sector.

Meanwhile, the mining and quarrying sector eased to 3.3%, compared to 5.7% in the previous quarter, attributed to a moderation in the natural gas sub-sector.