• GDP Grew 3.0% YoY in 4Q23
   
• Full Year 2023 Economy Expanded by 3.7%
   
• Growth underpinned by continued household spending and tourism activities

• Softer services and construction growth together with sluggish manufacturing output weighed overall 4Q23 growth

• Current account surplus dropped to the lowest level at RM0.3bn

• Economic growth momentum to improve in 2024

Malaysia's economy expanded slightly slower in 4Q23 as resilient household spending and investment activities cushioned subdued exports. Malaysia’s GDP growth moderated to 3.0% YoY in 4Q23 (3Q23: 3.3%). The monthly GDP performance showed a stable growth of 3.9% in October and 3.8% in November, before slowing to 1.4% in December. Looking at the quarter-to-quarter change, after adjusting for seasonal factors, Malaysia’s economic growth contracted -2.1% QoQ from the previous quarter (3Q23: +2.6%). The moderation in 4Q23 growth was underpinned by a continued and steeper contraction in external demand, while the sustained growth was anchored by still upbeat domestic demand conditions.

For the full year 2023 growth for the Malaysian economy normalised to 3.7% (2022: 8.7%). Growth moderated amid a challenging external environment, due mainly to slower global trade, the global tech downcycle, geopolitical tensions and tighter monetary policies. On the domestic front, despite the lapse of large policy support provided as the economy started to open up in 2022, the continued recovery in economic activity and labor market conditions supported growt

Source: BIMB Securities Research - 19 Feb 2024