In view of the global economic scenario, the International Monetary Fund (IMF) through its April 2023 World Economic Outlook (WEO) report predicted a 2.8 percent global economic growth in 2023 and 3.0 percent in 2024. The rising cost of living, tightening financial conditions, and persisting COVID-19 pandemic have hampered the economic outlook.
Looking at the country’s recent economic indicators, the Chief Statistician of Malaysia Dato’ Sri Dr. Mohd Uzir Mahidin said: “Malaysia’s total trade registered a double-digit growth in February 2023, increased 11.0 per cent from RM184.7 billion in February 2022 to RM205.0 billion. Exports grew 9.8 per cent to RM112.3 billion, while imports rose 12.4 per cent to reach RM92.7 billion.
“However, the total trade tapered off by 1.6 per cent in March 2023, to record a value of RM232.7 billion as compared to RM236.5 billion in the same month of the preceding year.”
He added, “Malaysia’s Manufacturing sector’s sales value also returned to post a double-digit growth of 10.3 per cent to register RM145.2 billion in February 2023 contributed by the strong growth in Transport equipment & other manufactures (14.3%), Food, beverages & tobacco products (14.0%) and Electrical & electronics products (10.0%) sub-sectors.”
The Department of Statistics, Malaysia (DoSM) released the Malaysian Economic Statistics Review (MESR) Vol. 4/2023 today (April 28) which found that export-oriented industries sales value which accounted for 71.1 per cent of total sales registered an encouraging expansion of 10.0 per cent in February 2023.
Similarly, the domestic oriented industries accelerated to 11.0 per cent. Furthermore, Malaysia’s Industrial Production Index (IPI) improved to 3.6 per cent in February 2023 as against the same month in 2022.
The February expansion was spearheaded by the Manufacturing sector which rose by 4.9 per cent (January 2023: 1.3 per cent) and the Electricity sector which increased by 1.1 per cent (January 2023: -4.3 per cent).
However, the output of Mining sector declined marginally by 0.5 per cent in February 2023, after registering a positive growth for eight consecutive months.
Malaysia’s Wholesale & Retail Trade recorded monthly sales value of RM134.3 billion, grew 14.7 per cent in February 2023. The incline was attributed to Retail trade sub-sector with an increase of RM9.4 billion or 19.2 per cent to register RM58.2 billion.
Motor Vehicles also expanded with 36.1 per cent (+RM4.5 billion) to RM16.9 billion. Within the same period, Wholesale Trade rose 5.9 per cent (+RM3.3 billion) to RM59.1 billion.
Commenting on the current labour force situation, Mohd Uzir said, “The number of employed persons in February 2023 increased further by 2.9 per cent to 16.19 million persons. Subsequently, the employment-to-population rose to 67.4 per cent, increased 1.1 percentage points, from 66.3 per cent (February 2022).
The unemployment recorded 3.5 per cent during the month (January 2023: 3.6%), backed by the number of unemployed persons which decreased by 0.7 per cent (-4.2 thousand persons) to 591.9 thousand persons in February 2023 (January 2023: 596.1 thousand persons).”
From the price perspective, Malaysia’s inflation in February 2023 remained at 3.7 per cent contributed by Restaurants & Hotels (7.4%) and Food & Non-Alcoholic Beverages (7.0%) and Transport (3.7%) groups.
Meanwhile, Malaysia’s Producer Price Index (PPI) recorded a negative 0.8 per cent in February 2023 as against 1.3 per cent in January 2023, the first decline since January 2021 due to base effect and lower prices of primary commodities.
In March 2023, PPI declined further to negative 2.9 per cent.
In concluding his statement, Mohd Uzir said: “Malaysia’s near-term economic prospects remain upbeat as indicated by the sectorial performance as well as continued expansion of labour force condition in February 2023. Adding to this, the annual change of Leading Index (LI) rebounded by registering a growth of 0.6 per cent to attain 111.6 points from 110.9 points in February 2022.
“The same trend was also noticeable in the monthly changes of LI which posted a growth of 2.9 per cent in February 2023 as against a negative 1.5 per cent in the previous month. Although the smoothed LI in February 2023 continued below the 100.0 points trend, the economic outlook is expected to improve in the near term supported by domestic demand and resilient policy measures under Budget 2023.”
