Malaysia's Economic Momentum: Investment Surges Amid Oil Decline

Malaysia's Q3 economic growth slowed due to decreased oil output despite increased investment and household spending. GDP grew 5.3%, down from 5.9% in Q2. Investments and exports remained strong, but oil and gas sectors contracted. Inflation concerns loom with subsidy cuts, possibly affecting future policy rates.

Malaysia's economic growth decelerated in the third quarter, following an 18-month high in the previous quarter. A decline in oil and gas output countered robust investment activity and steady household spending.

Data from Bank Negara Malaysia (BNM) and the Statistics Department revealed a GDP increase of 5.3% from July to September, down from 5.9% in the second quarter, aligning with analyst forecasts. Chief Statistician Mohd Uzir Mahidin cited investments, exports, and household spending as growth drivers.

Foreign direct investments rose to 14.5 billion ringgit, but maintenance impacts in oil and gas led to sector contractions. BNM Governor Abdul Rasheed Ghaffour emphasized household spending as a growth anchor, amid government subsidy cuts poised to influence inflation and potentially prompt policy tightening.

(With inputs from agencies.)