On Monday, May 12, the Bank of Malaysia (BNM) and the National Statistical Office of Malaysia (DOSM) announced that the Malaysian economy had outperformed expectations in the first quarter, fueled by strong domestic demand. The increase in GDP in January-March was 5.6%, surpassing the forecast of 5.1%. The quarterly GDP growth was 0.9%, contributing to an economic recovery amidst global challenges.
The growth in GDP was attributed to the resilience of domestic demand, particularly in the private sector and government spending. The BNM raised interest rates to pre-COVID-19 levels to counter inflationary pressures, and this decision was in line with the official forecast for the economy to grow by 4-5% this year.
This increase in GDP is a positive sign for Malaysia’s economy, which has been affected by the pandemic and global economic slowdown. The strong performance in the first quarter has given hope for a sustained economic recovery in the coming quarters, with the BNM and DOSM expecting the momentum to continue.
The Malaysian government has been implementing various measures to stimulate economic growth, including the allocation of funds for infrastructure projects and financial aid for individuals and businesses affected by the pandemic. The encouraging economic data suggests that these efforts are paying off.