Malaysia’s Economy Expands 5.3% in Q3 2024

Malaysia’s economy posted a 5.3% growth in Q3 2024, a performance Bank Negara Malaysia (BNM) attributed to robust investment activities and increasing exports.

Governor Abdul Rasheed Ghaffour highlighted that “exports continued to strengthen on the back of recovering external demand and positive spillovers from the global tech upcycle.” The growth reflects the advanced estimate reported by the statistics department in October and marks a significant rise from the 3.3% growth recorded in Q3 2023.

Bank Negara Malaysia also credited expanding household spending, favourable labour market conditions, and supportive government policies for the improved figures. “Stable inflation at 1.9% for both headline and core inflation” was another factor underpinning the economy’s performance, Rasheed said, adding that inflation dynamics will continue to depend on global commodity prices, government policies, and financial market trends.

On the currency front, the ringgit appreciated by 14.9% against the US dollar, with its nominal effective exchange rate (NEER) increasing by 9.9%. Rasheed explained this was partly due to the “US Federal Reserve’s shift towards monetary policy easing, which reduced pressure on regional currencies.” However, from October to November, the ringgit depreciated by 7.8% as the US dollar strengthened on expectations of smaller interest rate reductions following robust US economic data.

This combination of stable inflation, a strengthening currency, and export-led growth underscores Malaysia’s resilience amid global economic uncertainties.

Article by Pan Eu Joe for Free Malaysia Today. Read here or download the PDF below.

Malaysia’s GDP grows 5.3% in Q3 2024 _ FMT.pdf

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