KUALA LUMPUR, Oct 21 — Department of Statistics Malaysia (DoSM) has reported that advance estimates indicate Malaysia’s economy grew by 5.3 per cent in the third quarter (3Q) of 2024, following a robust 5.9 per cent growth in the preceding quarter.

In its release of advance gross domestic product (GDP) estimates today, the department noted that GDP increased by 5.1 per cent for the period from January to September 2024, compared to 3.8 per cent in the same period last year.

"The stable labour market, moderate inflationary pressures, accommodative fiscal and monetary policies, and ongoing recovery in tourism are expected to contribute to the expansionary momentum of the domestic economy,” said Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin in a statement.

According to the latest indicators released by DoSM, wholesale and retail trade sales rose by 6.7 per cent in July before moderating to 4.7 per cent in August 2024.

Furthermore, the Industrial Production Index increased by 5.3 per cent in July and 4.1 per cent in August 2024.

"On the external front, Malaysia’s trade demonstrated resilience, achieving quarterly growth of 7.8 per cent in exports and 20.8 per cent in imports,” said Mohd Uzir.

He noted that this quarter’s economic expansion was driven by the services sector, which grew by 5.1 per cent (compared to 5.9 per cent in 2Q 2024), led by the wholesale and retail trade, transportation and storage, and business services sub-sectors.

Additionally, the manufacturing sector experienced improved growth of 5.7 per cent, up from 4.7 per cent in the preceding quarter, primarily supported by electrical, electronic, and optical products, as well as petroleum, chemical, rubber, and plastic products.

The construction sector continued its remarkable growth, expanding by 19.5 per cent, up from 17.3 per cent, driven by strong performance across all segments, particularly specialised construction activities and non-residential buildings.

In contrast, the agriculture sector grew at a slower rate of 4.0 per cent compared to 7.2 per cent in 2Q 2024, attributed to moderation in the oil palm sub-sector.

However, the mining and quarrying sector contracted by 3.4 per cent, down from 2.7 per cent growth in the previous quarter, due to declines in the natural gas and crude oil and condensate sub-sectors.

Following these advance estimates, the preliminary GDP report, which will provide a detailed and comprehensive analysis for 3Q 2024, is set to be released on Nov 15, 2024. — Bernama