Economic and Financial Developments in Malaysia in the second quarter of 2023

ECONOMIC AND FINANCIAL DEVELOPMENTS IN MALAYSIA IN THE SECOND QUARTER OF 2023

The global economy registered modest growth in 2Q 2023

Bank Negara Malaysia Governor Datuk Abdul Rasheed Ghaffour said, “In the second quarter of 2023, global growth was modest. While the labour market remained resilient, growth continued to be weighed by higher interest rates and elevated inflation. China’s growth came in below expectation, despite benefiting from low base from the lockdown back in 2Q 2022.

“Global headline inflation continued to moderate, in line with lower commodity prices. Meanwhile, core inflation moderated at a much slower pace given the resilient labour market.

“Regional exports contracted, reflecting slowing global demand, ongoing shift in consumption from goods to services and downcycle in E&E sector, particularly for consumer electronics.”

Malaysia’s GDP grew by 2.9% in 2Q 2023
Ketua Perangkawan Malaysia Dato’ Sri Dr. Mohd Uzir Mahidin berkata, “Pada suku kedua 2023, ekonomi Malaysia berkembang 2.9%, disokong oleh pasaran buruh yang bertambah baik, peningkatan permintaan dalam negeri yang berterusan dan aktiviti pelancongan yang semakin rancak. Namun, pengurangan permintaan luar negeri dalam keadaan kitaran menurun teknologi global dan pengeluaran komoditi yang lebih rendah menjejaskan pertumbuhan ekonomi.

“Pertumbuhan tahunan yang lebih perlahan pada suku ini turut mencerminkan kesan asas yang tinggi dari suku kedua 2022 selepas pembukaan semula ekonomi negara dan kesan daripada pelaksanaan beberapa langkah dasar. Dari segi pertumbuhan suku tahun ke suku tahun pelarasan musim, KDNK menunjukkan peningkatan momentum pertumbuhan yang lebih kukuh sebanyak 1.5%, iaitu peningkatan berterusan sejak suku keempat 2022.

“Pada suku kedua ini, tiga sektor yang terus mencatatkan pertumbuhan iaitu sektor perkhidmatan meningkat sebanyak 4.7%, sektor pembuatan meningkat sebanyak 0.1% dan sektor pembinaan meningkat sebanyak 6.2%. Manakala dua sektor mencatatkan penyusutan iaitu sektor pertanian merosot sebanyak 1.1% dan sektor perlombongan merosot 2.3%.”

Growth underpinned by domestic demand and tourism activities
Ketua Perangkawan Malaysia Dato’ Sri Dr. Mohd Uzir Mahidin said, “On the demand side, growth was supported by both private and public sector expenditures.

“Private consumption growth was underpinned by firm labour market conditions. Spending expanded moderately across both necessities and discretionary items.

“Growth in overall investment improved, driven by capital expenditure on structures, and machinery & equipment (M&E), as well as improved Government’s fixed assets spending.

“However, during this quarter, net exports registered a contraction due to the more challenging global environment.

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