KUALA LUMPUR (BERNAMA) – The Malaysian economy grew by 5.1 per cent in 2024, up from 3.6 per cent in 2023, aligning with the government’s target of 4.8 per cent to 5.3 per cent year-on-year.
In a statement yesterday, Bank Negara Malaysia (BNM) said the growth is mainly due to continued expansion in domestic demand and a rebound in exports.
On the domestic front, growth was mainly driven by stronger household spending reflecting favourable labour market conditions, policy measures to support households and healthy household balance sheets, according to the central bank.
“In addition, strong investment approvals and further progress of multi-year projects by the private and public sectors – including catalytic initiatives under national master plans such as the New Industrial Master Plan, National Energy Transition Roadmap, and National Semiconductor Strategy – provided further impetus to investment growth,” said BNM.
On the external front, exports recovered amid steady global growth, a continued tech upcycle, and higher tourist arrivals and spending.
These supported the current account, leading to a continued surplus of 1.7 per cent of gross domestic product (GDP) in 2024 (1.5 per cent in 2023).
For the fourth quarter of 2024 (4Q 2024), GDP expanded by 5.0 per cent (3Q 2024: 5.4 per cent), driven mainly by domestic demand.
The central bank said the strong investment activity was underpinned by the continued realisation of new and existing projects.
“Household spending was sustained amid positive labour market conditions and continued policy support.
“In the external sector, exports of goods and services continued to expand while capital and intermediate imports growth moderated,” it said.
On the supply side, BNM said growth was driven by expansion in the services sector, with increased support from both consumer-related and business-related subsectors. The manufacturing sector was supported by the electrical and electronics and primary-related clusters, while the construction sector continued to record double-digit growth with robust activities in the residential, non-residential and special trade subsectors.
However, growth was weighed down by contraction in the commodities sector following lower oil palm output and the continued decline in oil production.
On a seasonally adjusted, quarter-on-quarter basis, growth declined by 1.1 per cent.
BNM governor Datuk Seri Abdul Rasheed Ghaffour said, “While the global environment could be challenging, the growth of the Malaysian economy will be driven by robust expansion in investment activity, resilient household spending and expansion in exports supported by Malaysia’s strong economic fundamentals.”
On the domestic front, BNM said investment activities will be driven by the favourable progress of multi-year projects in both the private and public sectors.
These will be further lifted by the realisation of approved investments.
It said household spending will benefit from the continued support through employment and wage growth, as well as government policy measures.
“This includes the upward revision of the minimum wage and civil servant salaries,” BNM noted.
