Malaysia’s Ministry of Economy stated today (Oct 20) that based on preliminary GDP estimates for the third quarter of 2023 (Q3 2023), Malaysia’s economy is expected to grow moderately at a rate of 3.3% (2Q 2023: 2.9%).
Performance estimates by sector show growth supported by the service and construction sectors with tourism activities showing recovery and progress in investment and implementation of major infrastructure projects such as ECRL, LRT 3 and MyDIGITAL 5G.
In a statement released by the ministry today (Oct 20), preliminary GDP estimates show the impact of weak global demand during the period, particularly manufacturing exports, particularly in the E&E and primary industry-related segments.
Based on the current performance of the world economy and the achievements of the first half of this year, Malaysia’s economy is estimated to grow at a rate of 4.0% in 2023.
The estimate presented in this 2024 Budget has taken into account the expected growth of Q3 2023 which is within the range of this growth estimate. In 2024, the country’s economy is expected to record growth between 4.0% and 5.0%, supported by a recovering external environment and better expectations of domestic demand.
Preliminary indicators such as WSTS semiconductor sales show that the technology cycle will pick up again and has the potential to benefit Malaysia’s E&E exports. In addition, the labor market situation is expected to be stable.
Focus will also be given to increase investment activities through the continuous implementation of infrastructure projects as well as strategies and initiatives under the Government’s main policy.
“In this connection, the Government will continue to ensure that the country’s economy grows and the well-being of the people will continue to be prioritized through the implementation of strategies announced under the 2024 Budget, the Half-Term Review of the Twelfth Malaysia Plan (KSP RMKe 12), the Energy Transition Roadmap (NETR), New Industrial Master Plan 2030 (NIMP 2030).
“The Government’s priority at the moment is to reinvigorate the country’s economic growth in order to expand its size and return the economy to the true track. The economy will be restructured to accelerate the transition towards becoming a high-income country in line with MADANI Economy’s aspirations to make Malaysia a leading Asian economy.”
The approach taken by the Government in the 12th Malaysia Plan is to implement 17 Big Shifts, including HGHV energy transition, technology and digital, high-value E&E, agriculture and agro-based and rare earths. In addition, the Great Shift is also implemented to empower SMEs and social enterprises, strengthen the public transport network and ensure the availability of future talent.
Focus will also be given to attract more quality investment in technology-based industries to stimulate sector growth and create high-income jobs, the statement read.
The Department of Statistics Malaysia (DOSM), has taken the initiative to improve data publication by publishing preliminary estimates of quarterly GDP. This is in line with the best practices implemented by most developed countries such as the United States, South Korea, Singapore and the United Kingdom. The publication of this preliminary estimate to determine the current performance of the economy.
