Central bank says Southeast Asian economy on track for robust investment, exports and household spending going forward.
Malaysia’s economy grew 5.1 percent in 2024, as strong domestic demand and investment offset a downturn in the commodities sector, according to the Southeast Asian country’s central bank.
Gross domestic product (GDP) expanded 5 percent in the October-December quarter, Bank Negara Malaysia said on Friday, down from 5.3 percent growth in the third quarter but ahead of an advance estimate of 4.8 percent.
The year on year performance marked a significant jump from GDP growth of 3.7 percent in 2023.
“Going forward, while the global environment could be challenging, growth of the Malaysian economy will be driven by robust expansion in investment activity, resilient household spending and expansion in exports supported by Malaysia’s strong economic fundamentals,” Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said.
Bank Negara Malaysia said that inflation dropped to 1.8 percent in 2024, down from 2.5 percent the previous year.
The Malaysian ringgit appreciated 2.7 percent against the US dollar, the central bank said, and also gained against the Singapore dollar, South Korean won and Japanese yen.
Bank Negara Malaysia said that the economic outlook was subject to the risk of slowing growth in Malaysia’s trading partners amid a heightened threat of trade restrictions and weaker commodities production.
“Nevertheless, potential upside to growth includes greater spillovers from the tech upcycle, more robust tourism activities and faster implementation of investment projects,” the central bank said.