KUALA LUMPUR – The Malaysian economy is expected to grow moderately at a rate of 3.3% based on the initial estimate of gross domestic product for the third quarter of 2023 (Q3 2023) compared with 2.9% in Q2 2023, according to the Economy Ministry.
The ministry said sectoral performance estimates indicated that growth is supported by the services and construction sectors, with tourism activities showing recovery and progress in investment, as well as the implementation of major infrastructure projects such as the East Coast Rail Link and LRT3 projects, and the 5G roll-out under the MyDIGITAL initiative.
“The initial GDP estimate shows the impact of weak global demand during the period, especially in manufacturing exports, particularly in the electrical and electronics segment and related primary industries,” it said in a statement today.
Furthermore, the ministry said Malaysia’s economy is estimated to grow at a rate of 4% in 2023 based on current global economic conditions and the first half of the year’s performance.
It said the estimates presented in Budget 2024 took into account the expected growth in Q3 2023, which is within this growth range.
The ministry said for the year 2024, the country’s economy is expected to record growth ranging from 4% to 5% supported by a recovering external environment and better domestic demand expectations.
It said initial indicators, such as the World Semiconductor Trade Statistics’ semiconductor sales, indicated that the technology cycle would rebound and potentially benefit Malaysia’s electrical and electronics exports.
Besides that, it said the labour market is expected to remain stable with a focus on increasing investment activities through the continuous implementation of infrastructure projects and the government’s main policy strategies and initiatives.
“In this regard, the government will continue to ensure the country’s economic growth and the well-being of the people remain a priority through the implementation of the strategies announced in Budget 2024, 12th Malaysia Plan Mid-Term Review, National Energy Transition Roadmap and New Industrial Master Plan 2030.
“The government’s current priority is to stimulate the country’s economic growth and expand its size to restore the economy to its true trajectory,” it said.
The ministry said the economy would be restructured to accelerate the transition towards becoming a high-income nation in line with the Madani Economy’s aspiration to make Malaysia a leading economy in Asia.
It said the approach taken by the government in the mid-term review of the 12th Malaysia Plan is to implement 17 bold measures, including high-growth high-value-added industries, energy transition, technology and digitalisation, high-value electrical and electronic products, agriculture and agro-based industries, and rare earths.
Additionally, it said bold measures are also implemented to empower micro, small and medium enterprises and social enterprises, strengthen public transportation networks and ensure the availability of future talent.
“Focus will also be given to attract more quality investments in technology-based industries to stimulate sectoral growth and create high-income jobs,” the ministry added. – October 20, 2023