Posted on 13 Feb 2015
Malaysia’s economy expanded 5.8% in Q4, 2014 and 6% for 2014
Malaysia’s economy expanded 5.8% in the
fourth quarter of 2014 supported largely by strong domestic demand while
for the year, the country’s GDP grew 6%.
For the full year, the country registered GDP growth of 6%, higher
than expectations on the back of growth in the private sector.
Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said on Thursday
she expects the Malaysian economy to remain on a steady growth path
despite the uncertainty in the global economic environment.
She said at a briefing this was due to the country's diversified
economic structure supported by strong fundamentals such as low
inflation, favourable employment conditions, low external debt and ample
international reserves.
Data showed the GDP growth in Q4, 2014 was higher at 5.8% from 5.1% a year ago.
Underpinning the growth was services, which expanded 6.4%,
construction 8.7% while manufacturing expanded 5.2%. Mining jumped 9.6%
but agriculture declined 2.8%.
For 2014, services expanded 6.3%, construction 11.6%, manufacturing
6.2% and mining 3.1% while agriculture increased 2.6% from 2013.
“The Malaysian economy is expected to remain on a steady growth
path. The gradual recovery in global growth will lend support to
manufactured export performance, although overall export growth would
likely remain modest amid lower commodity prices,” the central bank
said.
BNM said domestic demand is expected to remain favourable amidst
the lower oil prices. Investment activity is projected to remain
resilient, with broad-based capital spending by both the private and
public sectors cushioning the lower oil and gas-related investment
activity.
“While private consumption is expected to moderate, the steady rise
in income and employment, and the additional disposable income from the
lower oil prices would support household spending,” it said.
Elaborating on the GDP growth, BNM said the Malaysian economy
registered a higher growth of 5.8% in the fourth quarter of 2014 (3Q
2014: 5.6%), driven mainly by stronger private sector spending.
On the supply side, growth was sustained by the major economic sectors, supported by trade and domestic activities.
On a quarter-on-quarter seasonally-adjusted basis, growth momentum
increased to 2.0% (3Q 2014: 0.9%). For the year 2014, the Malaysian
economy grew by 6.0%.
Domestic demand remained the anchor of growth in the fourth
quarter, mainly on account of the improvement in private sector
activity.
Private investment expanded at a faster pace of 11.2% (3Q 2014:
6.8%), driven by capital spending in the manufacturing and services
sectors.
Private consumption registered a stronger growth of 7.8% (3Q 2014:
6.7%), supported by stable labour market conditions and continued wage
growth. Public consumption expanded at a more moderate pace of 2.7% in
the fourth quarter (3Q 2014: 5.3%), due to slower growth in both
emoluments and supplies and services.
Public investment, however, continued to decline, albeit at a
slower pace of 2.1% (3Q 2014: -8.9%), following a smaller contraction in
spending on fixed assets by the Federal Government.
On the supply side, growth in the fourth quarter was supported by major economic sectors.
Growth in the services sector was underpinned by expansion across all sub-sectors.
The construction sector remained strong, driven mainly by
non-residential and residental sub-sectors, while the mining sector
registered a stronger growth due to higher crude oil production.
The manufacturing sector continued to expand, supported mainly by
the export-oriented industries. However, the agriculture sector recorded
a contraction due to lower palm oil production caused by the floods in
the eastern states of Peninsular Malaysia.
