• Gross domestic product rose 6.2% yoy in 3Q17

• Private sectors remain the main contributor

• Strong pick-up in services and manufacturing

• Current account surplus widens further to RM12.5bn in 3Q17

• Strong expansion across most key demand and supply-side sectors underscores Malaysia’s macro strength and resilience

• Full-year GDP growth estimate revised higher to 5.8% in 2017 while maintaining 5.1% for 2018

Malaysia’s economy grew at the fastest pace in more than three years in 3Q17 as activity in the services and manufacturing sectors picked up and public spending exited contraction. Gross domestic product for the 3Q17 rose 6.2% yoy, accelerating from a 5.8% climb in the previous quarter and at the quickest clip since 2Q14. Strong GDP performance in 3Q17 led by robust domestic demand growth of 6.6% amid strength in private consumption (7.2%) and private investment (7.9%). Public sector spending ratchets up 4.1%. Exports expanded 11.8% alongside higher imports of 13.4%. On a net basis, added 0.2% to overall GDP growth. On the supply side, all the economic sectors, led by the services and manufacturing sectors, continued to expand. On a QoQ seasonally adjusted, GDP posted a growth of 1.8% against 1.3% in the prior quarter.

Source: BIMB Securities Research - 20 Nov 2017