Malaysian economy estimated growth for 4Q 2023 at 3.4%

Malaysia’s economy is estimated to grow by 3.4 per cent in the fourth quarter of 2023 (4Q 2023) against 3.3 percent in the previous quarter, said Statistics Department Malaysia (DoSM).

On an annual basis, Malaysia’s economy grew moderately at 3.8 per cent in 2023 after an 8.7 per cent growth in 2022, it added.

Chief statistician Datuk Seri Mohd Uzir Mahidin said the services sector spearheaded the economic performance in 4Q, with all other sectors experiencing positive growth.

“The services sector grew by 4.7 per cent in 4Q 2023 backed by wholesale and retail trade, transport and storage and business services sub-sectors,” he said in a statement today, reported Bernama.

The mining and quarrying sector expanded by 3.7 per cent in 4Q 2023, driven across all activities, especially natural gas, and crude oil and condensate.

The construction sector moderated to 2.5 per cent in 4Q 2023 versus 7.2 in the previous quarter while the agriculture sector rose to 1.2 per cent against the previous quarter’s 0.8 per cent due to improved oil palm production.

the manufacturing sector registered a marginal 0.1 per cent growth, supported by the manufacturing of vegetable, animal oils and fats, food processing, non-metallic mineral products, and basic and fabricated metal products.

However, electrical, electronic and optical products, petroleum, chemical, rubber and plastic products declined during 4Q 2023.

Annually, the services sector registered a growth of 5.4 per cent in 2023 versus 10.9 in 2022.

The manufacturing sector recorded a marginal growth of 0.8 per cent in 2023, due to weaker external demand from various countries.

Malaysia’s trade performance showed a declining trend in 2023 in tandem with an 8 per cent fall in exports with a 6.4 per cent decrease in imports.

“The construction sector improved to 5.8 per cent in 2023 against 5.0 in 2022. The mining and quarrying sector rose 1 per cent and the agriculture sector recorded a marginal growth of 0.5 per cent,” it added.