Malaysia’s GDP growth accelerated to +3.9% year-on-year

Malaysia’s GDP growth accelerated to +3.9% year-on-year in the first quarter of 2024, marking its fastest expansion in four quarters.

Despite falling slightly below market consensus at +4.1%, the growth exceeded expectations. However, GDP contracted by -3.4% quarter-on-quarter, with all major sectors except construction registering declines.

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GDP Growth acceleration

Analysts maintain a positive outlook, forecasting GDP growth to reach +4.7% for the year, driven by improving growth momentum and expected recovery in external demand.

In contrast, Malaysia’s exports sustained a -0.8% year-on-year contraction in March 2024, attributed to lower re-exports and reduced shipments of key commodities such as palm oil, petroleum, and electrical and electronics (E&E) products.

Declines were observed in exports to major markets including China, Japan, ASEAN, and EU countries, although shipments to the US and India continued to rise. Weaker exports of palm oil and crude petroleum contributed to the agriculture sector’s -17.3% year-on-year export decline in March.

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Despite the current challenges, analysts project a rebound in Malaysia’s external trade for the year, with goods exports and imports expected to grow by +5.2% and +4.4%, respectively, compared to the previous year’s downturn.