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 senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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