Malaysia’s economy surges 6.4% in second quarter

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Malaysia’s economy grew a better-than-expected 6.4 per cent in the second quarter on the back of stronger exports and robust domestic demand, the central bank said Friday (Aug 15).

Southeast Asia’s third largest economy said exports jumped 14.2 per cent in the three months through June compared to the same quarter last year, which saw slack external demand for Malaysian goods. Private investment, especially in the services and manufacturing sectors, surged 12.1 per cent, while private consumption grew 6.5 per cent in the quarter year-on-year, the bank said.

“Exports and private sector activity remained the key drivers of growth during the quarter,” Bank Negara said in a press release. “Going forward, the Malaysian economy is expected to remain on a steady growth path,” it said, adding export growth was expected to “moderate slightly” in the year’s second half.

Affin Investment Bank economist Alan Tan said second half growth was expected to come in at around 5.2 per cent year-on-year. “The broad-based recovery in exports and domestic demand will likely continue in the second half however,” he told AFP. Tan said economic growth for the year was expected to slightly exceed the government forecast of between 5 to 5.5 per cent.

Inflation averaged 3.3 per cent in the second quarter, the central bank said, down from 3.4 per cent in the first quarter. Last month, Bank Negara raised the overnight policy rate, a key interest rate, by 25 basis points to 3.25 per cent to curb inflation in the first adjustment in more than three years. Tan said the central bank was not expected to raise the rate any further this year.

The government is planning to introduce a goods and services tax next year, which economists have welcomed to help lower one of Asia’s highest debt-to-GDP ratios. But thousands protested that plan in an opposition-led rally on May Day, expressing fears the expected six per cent tax would further burden ordinary consumers already struggling with rising prices.

 

 

 

Source : Channel News Asia | Aug 15, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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