Malaysia’s economy to grow at more moderate pace this year

• Feb 28, 2023

KUALA LUMPUR: The Malaysian economy is anticipated to grow at a more moderate pace this year following a strong recovery in 2022 as economies around the world continue to struggle to sustain growth, the Department of Statistics Malaysia (DoSM) said.

Chief statistician Datuk Seti Dr Mohd Uzir Mahidin said Malaysia’s merchandise trade is predicted to continue growing in 2023, albeit at a slower rate.

“Based on the Ministry of Finance’s report, total trade, exports and imports were projected to increase by 1.3 per cent, 2.2 per cent and 0.2 per cent, respectively. This projection was in line with the World Trade Organisation estimates, which expected global trade to grow marginally by 1.0 per cent in 2023.

“Following slower external demand and diminished low-base effect, the manufacturing sector is foreseen to enter a moderate phase in 2023. The ongoing global uncertainty is also expected to influence economic and social activities as well as the labour market,“ he said in a statement today.

Adding to this, Mohd Uzir said Malaysia’s Leading Index decreased by 0.6 per cent, equivalent to 0.7 point, to 110.7 points in December 2022 as compared to 111.4 points in December 2021.

Looking at global economic scenario, DoSM said continuous worldwide inflation has eroded purchasing power and consumers are taking a cautious stance on spending, hence impacting economic performance.

“Based on the World Economic Outlook Update released by the International Monetary Fund in January 2023, the world economic growth is projected to moderate to 2.9 per cent in 2023 and improve to 3.1 per cent in 2024.

“Meanwhile, most economies displayed a slower Gross Domestic Product performance in the fourth quarter of 2022 compared to the third quarter of 2022,“ it said. – Bernama