Malaysia Q2 GDP grows faster at 5.8% on improved exports, services

SINGAPORE (ICIS)–Malaysia’s economy grew by 5.8% year on year in the second quarter, driven by stronger exports and an expansion in the services sector, official advance estimates showed on Friday.

The second-quarter GDP print follows the stronger-than-expected annual growth of 4.2% in the first quarter of 2024, the Department of Statistics said in a statement.

Manufacturing for the period posted a stronger annualized growth of 4.7% compared with the 1.9% pace set in the first quarter.

On a quarter-on-quarter basis, Malaysia’s economy grew by 0.7% in April-June, reversing the 3.1% contraction registered in Q1.

Q2 exports grew faster by 5.8% year on year to ringgit (M$) 368.8 billion ($84 billion), compared with the 2.0% growth in the previous quarter.

Malaysia’s services sector expanded by 5.6% year on year in the second quarter, accelerating from the 4.7% expansion in the first three months of 2024.

In H1, the country’s GDP growth averaged 5.0%, stronger than the 4.1% growth posted in the same period last year.

Malaysia is southeast Asia’s fifth-largest economy and a net exporter of polyolefins.

The country is also one of the largest producers and exporters of oleochemical products worldwide, contributing about 20% to global capacity, according to the Malaysian Petrochemicals Association (MPA).

($1 = M$4.67)

Thumbnail image: Petronas Towers in Kuala Lumpur, Malaysia (Source:C F Tham/AP/Shutterstock)