KUALA LUMPUR, April 4 — Malaysia is expected to see a 5.1 per cent gross domestic product (GDP) growth in the first quarter of 2023 (1Q 2023), following a better manufacturing performance recorded in March 2023, said Kenanga Investment Bank Bhd.
Yesterday, S&P Global reported that Malaysia’s seasonally adjusted manufacturing purchasing managers’ index (PMI) edged up to a five-month high of 48.8 in March 2023 from 48.4 in February 2023, indicating improving demand in the manufacturing sector.
In a note today, Kenanga IB also projected the 2023 GDP growth to settle at 4.7 per cent, backed by resilient domestic demand and policy measures under the Budget 2023.
“This will be further boosted by higher foreign tourist arrivals and the impact of China’s reopening,” it said.
On the manufacturing sector’s performance, Kenanga IB said although the manufacturing PMI remained at a contraction level of 47.9 on average in the first quarter of 2023 (1Q 2023) against 48.1 in 4Q 2022, it believed the manufacturing activity in the country could sustain a moderate recovery in the coming months.
It added that the recovery would be mainly supported by the domestic-oriented sector.
A reading above 50 per cent signals an expansion in business activity while a figure below indicates a contraction. — Bernama