KUALA LUMPUR, Nov 27 — Malaysia’s GDP grew by 5.3 per cent in the third quarter of 2024, following a 5.9 per cent increase in the previous quarter, according to the Malaysian Institute of Economic Research (MIER) Business Conditions Survey Report for the third quarter of 2024.
The manufacturing sector contributed significantly to this growth, with the sector’s index rising to 104.9 points from 86.2 points in the second quarter.
“Business confidence remained optimistic with domestic players accounting for 6 per cent, exporters 13 per cent, and a mix of both 78 per cent of survey respondents expressing positive sentiments,” it said in its Business Conditions Survey Report, 3rd Quarter 2024, released today.
It said the outlook for the fourth quarter of 2024 is also positive, as the Business Confidence Index (BCI) approaches 105 points, adding that key factors include stable production and sales, improved employment levels, increased wage costs, rising investments, and better capacity utilisation efficiency.
The report also noted that overall sales performance in the third quarter of 2024 was positive, with the index rising by 8.9 points to 52.8 compared to the same period in 2023.
“The quarter-on-quarter index performance also saw a significant increase, rising by 17.1 points to 52.8 in the third quarter of 2024 against 35.7 points in the second quarter of 2024,” it said.
The survey found that 53 per cent of firms with a mixed composition of domestic and export markets enjoyed healthy sales.
Meanwhile, 13 per cent of domestic-oriented firms and 27 per cent of export-oriented firms reported steady sales.
Sectors such as other manufacturing and repair & installation of machinery and equipment exhibited strong performance.
“Driven by healthy sales performance, domestic orders strengthened in the third quarter of 2024, rising by 13.8 points to 50.0 points compared to the same period in 2023.
“Over 70 per cent of firms enjoyed an increase in domestic orders or maintained a stable position,” it added.
MIER said this favourable outcome is attributed to the exceptional performance of key sub-sectors such as machinery & equipment, leather & related products, and food processing.
Exporters also experienced an improvement in export orders, which rose by 16.7 points to 48.0 points compared to the third quarter of 2023.
More than 60 per cent of firms reported either an increase in export orders or remained stable.
“The manufacturing sector demonstrated a stable trend in production volume, with over 70 per cent of respondents reporting a stable and positive trend,” it said.
Inventory levels also rose, gaining 10 points to 64.8 points in the third quarter of 2024.
More than 80 per cent of firms involved in both domestic and export markets reported stable inventories.
In the report, MIER said investment experienced an increasing trend, with a year-on-year gain of 18 points to 68.0 points in the third quarter of 2024.
Over 70 per cent of firms operating in both domestic and export markets reported stable investment levels.
Capacity utilisation also saw an improvement, rising by 3.9 points year-on-year to 42.5 in the third quarter of 2024.
More than 80 per cent of companies operated within the 61 per cent-100 per cent range19. Employment levels showed a positive trend, rising by 14.3 points to 56.5 in the third quarter of 2024.
Despite a decline in wage costs, with a year-on-year decrease of 2.8 points to 72.2 points in the third quarter of 2024, MIER said local sales prices remained stable as 70 per cent of manufacturers reported no changes.
“The business outlook for the next three months remains positive, with most firms optimistic due to Malaysia’s favourable image.”
The Malaysian Business Condition Index for the fourth quarter of 2024 is expected to reflect growth in sales, production, employment, and wage costs.
The index highlights positive trends in employment and sales, signaling resilience and strong recovery potential, said MIER.
