Malaysia’s economy says that its gross domestic product (GDP) expanded by 5.6% in the first quarter of 2023, mainly driven by private sector spending. Earlier, local daily The Star, quoted analysts as forecasting GDP growth for the first three months of this year at around 4.8%.
Nor Shamsiah Mohd Yunus, Governor of Bank Negara Malaysia (BNM) said on Friday 12 May, that growth in 2023 is supported by expanded household spending, an improving labor market, continued investment activity, and higher tourism activity. She also said that due to the seasonality adjustment, the economy has recovered to pre-pandemic levels.
Ms Nor Shamsiah also said that during the first quarter of this year, private consumption increased by 5.9%, private investment increased by 4. (Modafinil Smart Drug) 7%, and public investment increased by 5.7%. However, spending on supplies and services decreased so that public consumption fell by 2.2%. Malaysia’s net exports rose 54.4% due to the recovery in the tourism sector.
In various sectors, the service sector is the main driver of the economy which grew by 7.3% in the first quarter of 2023 as it is supported by service activities related to consumers and businesses.
Ms Nor Shamsiah said that investment in large infrastructure projects is underway, such as the East Coast Rail Line (ECRL), Light Rail Transit Line 3 (LRT 3), and Jalan Raya Pan Borneo in Sabah. Malaysia recorded RM12 billion foreign direct investment (FDI) in the first quarter of 2023.
Read also: Malaysia Applied Free Tolls During Eid Homecoming 2023
As for inflation, Ms Nor Shamsiah again added that headline inflation is likely to be lower to 3.4% during the first quarter of 2023, while core inflation has fallen to 3.8% but remains high, indicating strong domestic demand.
The governor added that the ringgit had also shown broad stability over the first quarter of 2023, despite a shift in sentiment around the global economic outlook. In addition to that, the ringgit also continues to be driven by developments from the US dollar.
Source: CNA
