• Growth was steered by household spending and higher investment

• Lower agriculture output hampers growth

• Current account surplus rebounded to RM16.2bn

• Growth on solid footing and on track for 4.7% GDP in 2024

Malaysia's economic performance strengthened in the first quarter of 2024, as GDP expanded by 4.2%, a notable increase from the 2.9% growth seen in the preceding quarter. On seasonally adjusted, the economy grew by 1.4% QoQ (4Q23: -1%). On a monthly basis, economic performance indicated a growth spike with 4.8% in Jan, 5.0% in Feb, before easing to 2.9% in Mar.

Domestic demand and gross fixed capital formation continued to drive economic growth this quarter. Private consumption remained strong, increasing to 4.7%, driven by discretionary and essential spending. Investment activity was bolstered by strong investments in structures and ongoing spending on machinery and equipment. Moreover, inbound tourism continued to recover, boosting services exports, and partially offsetting slower goods export growth. On the supply side, economic performance was supported by all sectors except for agriculture, which experienced output slowdown.

Source: BIMB Securities Research - 20 May 2024