Malaysia's Economic Resurgence: Growth Driven by Investments and Exports

Malaysia's economy saw a growth of 5.3% in the third quarter, driven by strong investment and export activities. With inflation at 1.8% thus far, the government plans strategic cuts in subsidies for 2025. The ringgit has shown recovery against the dollar amid global economic shifts.

Malaysia's economy expanded by 5.3% in the third quarter compared to the previous year, a deceleration following the 18-month high observed in the second quarter, as confirmed by governmental and central bank statements on Friday.

Economists anticipated this annual GDP growth rate for the July-to-September period, aligning with the government's earlier projections. The growth was significantly bolstered by investments and exports, according to Bank Negara Malaysia. "The Malaysian economy's growth will hinge on robust investment expansion, improving exports, and resilient household spending," stated BNM Governor Abdul Rasheed Ghaffour.

Inflation, both headline and core, averaged 1.8% for the year and is projected to remain controllable through to 2025, though external factors could sway this outlook. With planned subsidy reductions and economic reforms, the government expects economic growth of 4.8% to 5.3% in 2024. The ringgit's stability was partly attributed to easing global monetary policies.

(With inputs from agencies.)