Malaysia Retail Trade, Exports, and Industrial Output Show Strong Growth in 2QCY24

In the second quarter of 2024, Malaysia’s economy demonstrated notable strength, driven primarily by robust domestic demand and improving external trade conditions.

Domestic Spending and Retail Trade

Consumer spending showed significant improvement, with retail trade rising by 7.4% year-on-year in 2QCY24, up from 5.2% in the previous quarter. This represents the fastest growth in retail trade in a year.

External Trade

Malaysia’s exports of goods increased by 5.8% year-on-year in 2QCY24, building on a 2% rise in 1QCY24. When excluding re-exports, domestic exports grew even faster at 11.4%, compared to 5% in the previous quarter.

Industrial Production

The industrial sector also saw strong performance, with production rising by 4.5% year-on-year in 2QCY24, the highest quarterly growth since 3QCY22. This was largely driven by a 4.9% increase in manufacturing output, a significant jump from 2.1% in the first quarter.

GDP Growth Estimate

Given these positive indicators, we estimate Malaysia’s GDP growth for 2QCY24 at approximately 6.1% year-on-year. The growth is supported by robust domestic spending and a strong performance in the services sector.

Overall, the data reflect a period of economic strength, driven by both domestic and external factors.