The Malaysian economy continue to expand with a 4.3% GDP growth rate reported in the second quarter of 2013, as compared to 4.1% in the first quarter of 2013. According to the Central Bank of Malaysia, domestic demand remained firm, growing by 7.3% (1Q13: 8.2%), backed by higher private consumption (2Q13: 7.2%; 1Q13: 7.5%) and double-digit growth rates in the private and public investments, at 12.7% and 6.4% respectively.
On the supply side, the construction sector continued to record the highest growth rate at 9.9%, followed by the services sector (4.8%) and the manufacturing sector (3.3%). Agriculture activities slowed down to register a mere 0.4% growth rate as the sector was weighed down by weak external conditions, according to the Central Bank of Malaysia. Meanwhile, the inflation rate registered an increase of 1.9% in the second quarter of 2013 from the 1.5% inflation rate recorded in the first quarter of 2013. The unemployment rate remained unchanged at 3.1% (1Q13: 3.1%). On 4 October 2013, the Central Bank of Malaysia announced that the Overnight Policy Rate will continue to maintain at an accommodative level of 3%.
Source : Cushman & Wakefield