Malaysia’s economy expanded 4.9 per cent after recording a growth of 4.5 per cent during the first quarter of 2019. All sectors in the economy posted a positive growth primarily supported by Services and Manufacturing sectors. On the expenditure side, the growth was driven by the sustained performance in Private final consumption expenditure and external trade.
Performance of the economy
Services grew 6.1 per cent backed by Wholesale & retail trade, Information & communication and Food & beverage and accommodation. Manufacturing sector increased to 4.3 per cent contributed by Electrical, electronic & optical products and Petroleum, chemical, rubber & plastic products. Meanwhile, Mining and quarrying sector rebounded to 2.9 per cent driven by the recovery in natural gas production. Agriculture sector posted a growth of 4.2 per cent following a moderation in Oil palm and contraction in Fishing and Forestry & logging. Construction sector grew marginally at 0.5 per cent contributed by Civil engineering and Specialised construction activities.
Private final consumption expenditure remained as the main anchor to the economy with a growth of 7.8 per cent followed by external trade which recorded a strong growth of 22.9 per cent in this quarter. Nevertheless, Gross fixed capital formation recorded a marginal negative of 0.6 per cent.
Surplus in current account balance
Malaysia’s current account balance recorded a surplus of RM14.3 billion as against RM16.4 billion in the previous quarter. This was contributed by surplus in goods at RM28.1 billion coupled by lower deficit in primary income at RM5.5 billion.
In this quarter Foreign Direct Investment (FDI) registered a lower inflow of RM4.4 billion compared to RM21.7 billion last quarter. Nonetheless, Malaysia’s Direct Investment Abroad (DIA) surged to RM12.6 billion from RM5.5 billion in preceding quarter.
The financial assets position increased to RM1,780.8 billion while liabilities position recorded RM1,800.3 billion. This resulted to lower net liabilities of RM19.6 billion as at end of second quarter 2019.
The international reserves of Bank Negara Malaysia stood at RM425.4 billion as compared to RM420.2 billion last quarter.
The Consumer Price Index in the second quarter of 2019 recorded an increase of 0.7 per cent as compared to negative 0.3 per cent in the first quarter 2019. The Producer Price Index for Local Production decreased 1.6 per cent as compared to negative 2.2 per cent in the previous quarter.
Employed persons recorded an increase of 2.1 per cent in the second quarter 2019 to 15.1 million persons.
Approaching the third quarter of 2019, the signal of Leading Index indicates that the Malaysia’s economy will experience a better growth.
DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
16 August 2019
Rohaida binti Mohamad
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : rohaida.mohamad[at]dosm.gov.my