KUALA LUMPUR: Malaysia's economy grew 5.3 per cent in the third quarter of 2024 (Q3 2024), supported by strong increase in investment activities and further expansion in exports.
Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour said investment activity was underpinned by strong spending on structures and machinery and equipment (M&E), while household spending sustained its expansion amid positive labour market conditions and policy support.
"In the external sector, exports continued to strengthen on the back of recovering external demand and positive spillovers from the global tech upcycle," Abdul Rasheed told a press conference here today.
He said both headline and core inflation remain unchanged at 1.9 per cent in the quarter, suggesting limited spillovers from the recent diesel price adjustment to broader consumer price index (CPI) prices.
Higher inflation was observed for diesel and vehicle insurance, which was offset by broader moderation in inflation for food and beverages, particularly food away from home, cereals, and fresh vegetables.
On the whole, the share of CPI items recording monthly price increases was lower at 38.9 per cent during the quarter from 49.4 per cent in Q2 2024.
Abdul Rasheed said Malaysia's economic growth will be driven by robust expansion in investment activity, continued improvement in exports, and resilient household spending.
He said the growth outlook remains subject to downside risks stemming from slower external demand, further escalation of geopolitical tensions and protectionist measures, as well as weaker-than-expected commodity production.
"Nevertheless, upside risks to growth include greater spillovers from the tech upcycle, faster implementation of investment projects and more robust tourism activity," he added.