DOSM estimates 3.4% growth in Malaysian economy in 4Q23

KUALA LUMPUR: Malaysia’s economy is estimated to grow at 3.4 per cent in the fourth quarter of 2023 (4Q 2023), representing a slight uptick from the previous quarter’s growth of 3.3 per cent, according to the Department of Statistics Malaysia (DoSM).

Chief statistician Datuk Seri Mohd Uzir Mahidin said notably, the services sector retained its position as the primary driver of economic performance during this period, with positive growth observed across all other sectors.

For the monthly economic indicators performance, Malaysia’s Industrial Production Index (IPI), which measures the real output in the manufacturing, mining and electric industries, registered an increase of 0.6 per cent year-on-year (y-o-y) in November 2023.

The marginal increase was backed by an expansion in the mining sector at 1.9 per cent, and in the electricity sector at 4.2 per cent.

“However, the manufacturing sector experienced a downturn, registering a negative 0.1 per cent after two consecutive months of positive growth,” he said in a statement today in conjunction with the release of the Malaysian Economic Statistics Review.

Mohd Uzir said sales in the manufacturing sector declined by 2.6 per cent year-on-year (y-o-y) in November 2023 to RM155.0 billion, primarily due to a substantial 10.8 per cent drop in the petroleum, chemical, rubber and plastic products sub-sector, and the electrical and electronics products sub-sector which fell by 5.3 per cent.

The wholesale and retail trade sector grew 6.2 per cent y-o-y to record monthly sales of RM142.6 billion in November 2023 with growth primarily driven by the wholesale trade sub-sector which rose by 6.2 per cent, or RM3.7 billion, to RM63.2 billion.

“This was followed by retail trade and motor vehicles with 4.4 per cent (+RM2.6 billion) and 12.7 per cent (+RM2.0 billion), respectively,” he said.

Meanwhile, the inflation rate remained at 1.5 per cent in December 2023.

On the trade front, Malaysia’s total trade shrank 2.4 per cent from RM237.6 billion in November 2022 to RM231.8 billion.

Exports decreased 5.9 per cent to RM122.1 billion while imports increased 1.7 per cent to RM109.7 billion, an annual increase for the first time since February 2023.

The trade balance remained in surplus at RM12.4 billion, down 43.1 per cent from the previous year.

Total trade amounted to RM225.1 billion in December 2023 with RM118.5 billion in exports and RM106.7 billion in imports.