Consumption in Malaysia

Malaysia - Consumption
GDP growth soars in Q3 on a low base and robust domestic demand
GDP growth improved to 14.2% year on year in the third quarter, from 8.9% in the second quarter, marking the best result since Q2 2021. The headline expansion was due to a favorable base effect and resilient domestic demand.
Government consumption picked up to a 4.5% expansion (Q2: +2.6% yoy). Additionally, fixed investment growth improved to 13.1% in Q3, from the 5.8% increase recorded in the prior quarter. Meanwhile, household spending growth eased, but remained robust at 15.1% (Q2: +18.3% yoy).
On the external front, exports of goods and services growth hit an over one-year high of 23.9% in the third quarter, picking up from the second quarter's 10.4%. In addition, imports of goods and services growth sped up to 24.4% (Q2: +14.0% yoy).
Nevertheless, underlying momentum continued slowing: On a seasonally adjusted quarter-on-quarter basis, economic growth cooled to 1.9% in Q3, following the previous quarter's 3.5% growth. Q3's reading marked the worst reading since Q3 2021.
Commenting on risks to the outlook, Debalika Sarkar and Sanjay Mathur, economists at ANZ, said:
“[The] external environment is becoming unfavorable. There are clear signs of weakness in export demand, with the new export orders sub-index of the manufacturing PMI steadily contracting for the fourth straight month […]. The uncertainties surrounding global growth, a maturing tech cycle and the aggressive tightening by the US Fed are potential risks. […] The impact of the central bank’s policy rate hikes will also become more prominent over the coming quarters. Overall, we believe that Q3 GDP marks the peak of the cycle.”
FocusEconomics panelists expect GDP to expand 6.2% in 2023, which is unchanged from last month’s forecast. In 2024, our panel sees GDP growth at 4.6%.
Malaysia - Consumption Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Consumption (annual variation in %) | 6.0 | 5.9 | 6.9 | 8.0 | 7.6 |
Malaysia Consumption Chart

Source: Department of Statistics Malaysia and FocusEconomics calculations.
Malaysia Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 3.32 | 0.15 % | Dec 31 |
Exchange Rate | 4.09 | 0.0 % | Jan 01 |
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Economic News
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Malaysia: Bank Negara Malaysia pauses hiking cycle at first 2023 meeting
January 19, 2023
At its meeting on 18–19 January, the Monetary Policy Committee of Bank Negara Malaysia (BNM) kept the overnight policy rate (OPR) unchanged at 2.75%, defying market expectations of another 25 basis point increase.
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Malaysia: Inflation plunges to lowest level since June in December
January 19, 2023
Inflation came in at 3.8% in December, which was down from November’s 4.0%.
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Malaysia: Merchandise exports rise at a more moderate pace in December
January 18, 2023
Merchandise exports climbed 1.1% on an annual basis in December, on the heels of November’s 4.4% increase.
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Malaysia: Industrial output growth speeds up in November
January 11, 2023
Industrial output rose 4.8% in year-on-year terms in November, which followed October's 4.6% increase.
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Malaysia: Manufacturing PMI drops to over one-year low in December
January 3, 2023
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 47.8 in December, down marginally from November's 47.9.