Malaysia’s services and manufacturing growth, the big factor behind the country’s strong third-quarter (3Q) gross domestic product print, is projected to continue in 2023.
Moody’s Analytics, in its latest Asia Pacific Economic Preview report, said the stronger year-on-year growth of 14.2% in 3Q exceeded expectations, with consumption and investment contributing significantly to the growth.
It said the influx of tourists pushed up demand for the retail trade, accommodation, and food and beverage sectors, and growth in these industries will likely be carried into early 2023.
Exports of manufacturing products stayed resilient, despite the downturn in China, with growth to remain robust next year, said Moody’s Analytics.
“The electronics sectors continued to grow, spurred by demand for semiconductor chips.
“Malaysia houses several major semiconductor producers, and exports will likely remain robust next year,’’ it said.
Moody’s Analytics added that as a net exporter of crude oil and palm oil, Malaysia stands to benefit from higher commodity prices.
It noted that both mining and agriculture picked up in 3Q. These industries were affected by labor issues earlier during the COVID – 19 pandemic.
- The Edge Markets