Malaysia smashes forecasts with 6.2% GDP growth in Q3

The growth was driven by a surge in investment and exports.

Malaysia’s GDP rose 6.2% YoY in Q3, hitting its fastest pace in over three years and beating forecast expectations of 5.7% growth.

A surge in investment which grew 6.7% YoY and exports which rose 11.8% YoY boosted the Malaysian economy this quarter.

The manufacturing sector continues to a big growth driver as it expanded 7% YoY in Q3, driven by large demand in electrical, electronic and optical products sector.

Service sector also performed strongly expanding 6.6% YoY in Q3 whilst private consumption stabilized at 7.2% YoY in Q3, pointing to resilience of domestic demand.

BMI Research notes that political risk is likely to be contained as Prime Minister Najib Razak emerged largely unscathed from several allegations of corruption levelled against him.

“With Najib having consolidated his position, we believe that the upcoming general elections are unlikely to lead to a significant loss in investor confidence towards Malaysia and expect the business environment to remain positive,” the report added.

Malaysia ranked 24th in the World Bank’s Ease of Doing Business report 2018 as it made progress in getting credit, protecting minority investors and cross-border trading.