Malaysian economy grew by 4.9% in Q2 this year

MEDIA RELEASE

ECONOMIC AND FINANCIAL DEVELOPMENTS IN MALAYSIA
IN THE SECOND QUARTER OF 2019

The Malaysian economy grew by 4.9% in the second quarter of 2019
The economy recorded a stronger growth of 4.9% in the second quarter (1Q 2019: 4.5%), supported by higher household spending and private investment. On the supply side, the mining sector rebounded, driven mainly by the recovery in natural gas output. Growth in the manufacturing sector improved marginally, supported by better performance of the domestic-oriented industries. Services sector continued to expand amid sustained growth in the wholesale and retail trade subsector. On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 1.0%.

For the quarter, headline inflation averaged higher mainly reflecting the lapse in the impact of the Goods and Services Tax (GST) zerorisation that was implemented in June 2018. Core inflation, excluding the impact of consumption tax policy changes, was unchanged at 1.6%.

Exchange rate developments
In the second quarter, the ringgit depreciated by 1.5% against the US dollar driven mainly by non-resident portfolio outflows as investor sentiments remained subdued amid softening global growth outlook and escalations in global trade tensions. These uncertainties remained elevated and continued to dampen investors’ risk-appetite towards regional financial markets, including Malaysia. From 1 July to 15 August, the ringgit depreciated by 1.2% against the US dollar. For the year to date, the ringgit has depreciated by 1.3% against the US dollar, in line with most regional currencies. Going forward, the confluence of global factors will continue to have bearing on the movements of regional currencies, including the ringgit.

Financing conditions
Overall financing conditions are consistent with the current pace of economic expansion, with demand for financing showing some signs of improvement given higher loan applications during the quarter. Steady loan disbursements across segments, including for SMEs and purchase of houses, continued to support economic activity.

Going forward, the Malaysian economy is expected to remain on a steady growth path
Growth is expected to remain supported by private sector activity. The external sector is likely to continue to be affected by slower global growth amid ongoing trade tensions. Overall, the baseline projection is for the Malaysian economy to grow between 4.3% – 4.8% for the year.

Headline inflation in the second half of 2019 is expected to average higher compared to the first half following the lapse in the impact of consumption tax policy changes. Underlying inflation is expected to remain stable, supported by the continued expansion in economic activity and in the absence of strong demand pressures.

Bank Negara Malaysia
16 August 2019


Malaysia’s economy: STRONGEST growth since early 2018

Malaysia’s 4.9% GDP growth in 2nd quarter of 2019 exceeded the expectation of 22 economists surveyed by Bloomberg earlier this year.

This growth is the strongest economic expansion of the country since early 2018.

Together we make Malaysia great again.

News links:
https://www.reuters.com/article/us-malaysia-economy-gdp/malaysia-second-quarter-gdp-growth-pace-seen-picking-up-bucking-regional-trend-reuters-poll-idUSKCN1V40B2

https://www.straitstimes.com/business/economy/malaysias-economy-grows-49-in-q2-faster-than-forecast

https://www.theedgemarkets.com/article/malaysia-gdp-grows-49-2q19-driven-services-manufacturing


国家银行:2019第二季度经济成长达4.9%

国家银行今天发布文告,在马来西亚家庭消费能力提高及私人领域投资两项关键因素的支持下,国家经济在2019年第二季度增长至4.9%,而在2019年第一季度则是4.5%,同时这项增长比预期中乐观。

另外文告也指出,在采矿业、以及天然气产出的复苏;国内制造业、批发、零售业及服务业表现良好的情况下,马来西亚经济有望保持稳定成长。

“由于以国内为导向的工业表现较好,进而带动制造业领域的增长也有所改善。” 随着这些领域的成长率提高,推动了大马经济领域的增长。

同时国家银行也预测,2019年全年的经济增长将会保持在4.3%至4.8%。

火箭报报道: https://is.gd/OKM73l


Ekonomi Malaysia berkembang 4.9% pada suku kedua 2019 daripada 4.5% pada suku pertama.

Untuk masa depan, KDNK Malaysia dijangka berkembang antara 4.3 peratus dan 4.8 peratus pada 2019, disokong oleh aktiviti sektor swasta.

Sumber: Bank Negara Malaysia