KUALA LUMPUR, Nov. 15 (Xinhua) -- The Malaysian economy expanded by 5.3 percent in the third quarter of 2024, driven by strong investment activity and continued improvement in exports, Malaysia's central bank said Friday.
Bank Negara Malaysia (BNM) said in a statement that the investment activity was underpinned by strong spending on structures and machinery and equipment, while household spending sustained its expansion amid positive labor 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.
On the supply side, most sectors remained supportive of growth. In particular, the improvement in the manufacturing sector was driven by export-oriented clusters. However, growth was partly offset by maintenance activities in the mining sector.
On a quarter-on-quarter seasonally adjusted basis, growth momentum moderated to 1.8 percent.
Overall, the Malaysian economy expanded by 5.2 percent in the first three quarters of 2024.
"Going forward, growth of the Malaysian economy will be driven by robust expansion in investment activity, continued improvement in exports, and resilient household spending," BNM governor Abdul Rasheed Ghaffour said.
On the domestic front, he noted investment activities will be supported by progress in multi-year projects across private and public sectors.
Catalytic initiatives announced in national master plans and higher realization of approved investments are also key drivers for investment activities, he said.
According to him, these investments, which are supported by higher capital imports, will raise exports and expand productive capacity in the economy.
He also noted household spending will be underpinned by continued employment and wage growth as well as policy measures.
Externally, the ongoing global tech upcycle, continued strong demand for manufactured goods and commodities, and higher tourist spending are expected to lift exports, he added.
While movements in the ringgit will continue to be influenced by external developments, the bank said Malaysia's favorable macroeconomic outlook and ongoing structural reforms would support the ringgit over the medium term.
It noted that the BNM will continue to ensure the orderly functioning of the domestic foreign exchange market. ■
