2022 GDP hit 22-year high of 8.7%

KUALA LUMPUR – Malaysia's economic performance rose to a 22-year record high of 8.7% in 2022 against 3.1% in the previous year, said the Department of Statistics (DoSM).

In a separate statement, Bank Negara Malaysia (BNM) said the nation's gross domestic product (GDP) expanded by 7% in the fourth quarter of 2022 (Q4, 2022), versus 14.2% in Q3 2022, as support from the stimulus measures and low base effect waned.

The central bank noted that private sector activity remained the key growth driver in Q4, supported by private consumption and investment.

“The continued growth in private consumption was mainly driven by improving labour market conditions.”

On a quarter-on-quarter seasonally-adjusted basis, Bank Negara said the economy registered a decline of 2.6% versus 1.9% in 3Q 2022.

Commenting on the full-year GDP performance, DoSM said the services sector expanded by 10.9% in 2022, followed by the manufacturing (+8.1%) and mining and quarrying (+3.4%) sectors. 

“After two consecutive years of declines, the construction and agriculture sectors rebounded in 2022 with growths of 5.0% and 0.1%, respectively," it said.

DoSM said in 2022, the economy had improved and surpassed the 2019 level with an increase of 5.9%, aided by higher growth in the services (+6.9%) and manufacturing (+15.3%) sectors.

Meanwhile, it said that Malaysia's gross national income per capita surged to RM52,819 from RM46,163 the previous year. 

On the outlook for 2023, the central bank said Malaysia's economy is expected to expand at a more moderate pace amid a challenging external environment, with domestic demand continuing to drive growth, supported by the continued recovery in the labour market and the realisation of multi-year investment projects. 

“The services and manufacturing sectors will also continue to support growth.”

It added that the slowdown in exports following weaker global demand would be partially cushioned by higher tourism activity. 

“Meanwhile, the balance of risks remains tilted to the downside, mainly from weaker global growth, tighter financial conditions, reescalation of geopolitical conflicts and worsening supply chain disruptions.” – Bernama, February 10, 2023