• Gross domestic product rose 5.8% from a year earlier

• Growth on the expenditure side was driven mainly by private

• Private consumption registered its fastest growth since 1Q15

• Government expenditure growth slowed to 0.2%

• Growth outperforms on robust services, manufacturing and construction

• Current account surplus widened to RM9.6bn in 2Q17

• Malaysia’s economy to remain resilient

• Full-year GDP growth estimate revised higher to 5.3%

Malaysia's economy grew 5.8% in 2Q17, the fastest pace in more than two years and defying expectations for a slight slowdown. Continued strength in domestic demand and robust exports were key growth drivers. The growth was also prompted by the expansion in services and manufacturing activity. Domestic demand grew mainly on private sector spending which registered stronger growth of 7.1%. Private investments also rose by 7.4% during the period. On the supply side, all the economic sectors, led by the services and manufacturing sectors, continued to expand.

On a quarter-on-quarter seasonally adjusted, GDP posted a growth of 1.3% against 1.8% in the preceding quarter.

Source: BIMB Securities Research - 21 Aug 2017