ECONOMY / KEY INFRASTRUCTURE UPDATES
- The Malaysian economy grew slower in 1Q 2023 at 5.6% (cf. 4Q 2022: 7.0%, 1Q 2022: 5.0%) as support stimulus measures and low base effect waned. For overall 2022, the Malaysian economy rebounded by 8.7% (2021: 3.1%).
- Private sector activity remained the key driver, with private consumption growth of 7.5% y-o-y mainly driven by improving labour market conditions.
- Malaysia’s exports jumped 25% y-o-y in 2022 to RM1.6 trillion, backed by increasing shipments, and exports to ASEAN, China, the United States, the European Union and Japan.
- Domestic demand is expected to continue to drive economic growth, with Bank Negara Malaysia’s prediction of growth of 4%-5% for 2023.