In the second quarter, private consumption grew by 6.3 percent year-on-year, faster than a 5.3 percent growth in the previous quarter, supported by continued wage and employment growth. Public consumption expanded by 6.5 percent, accelerating from a 3.8 percent increase in the March quarter, due to higher spending on supplies and services. Gross fixed capital formation rose 6.1 percent, surging from a 0.1 percent expansion in the preceding quarter. Private investment advanced by 5.6 percent, following a 2.2 percent in the March quarter, mainly supported by continued capital spending in the services and manufacturing sectors. Public investment grew by by 7.5 percent, after declining 4.5 percent in the previous period, due to higher spending on fixed assets by the Federal government and public corporations. Exports rose 1.0 percent, rebounding from a 0.5 percent decrease in the first quarter, driven by an increase in exports of goods and services. Imports also grew by 2.0 percent, as compared to a 1.3 percent rise in the previous three months.
On the production side, agriculture sector registered a contraction (-7.9 percent from -3.8 percent in the previous quarter). In contrast, an expansion was seen in the mining sector (+2.6 percent from +0.3 percent, mostly due to higher crude oil and natural gas production), construction sector (+8.8 percent from +7.9 percent, dominated by the civil engineering sub-sector), services (+5.7 percent from +5.1 percent, supported by stronger household spnding) and manufacturing sector (+4.1 percent from + 4.5 percent, contributed by the electronics and electrical cluster.)
Moving forward, Malaysia's GDP is expected to be between 4–4.5 percent, despite the challenging economic environment globally. Domestic demand will continue to be the principal driver of growth, sustained primarily by private sector spending. Private consumption is expected to grow further, underpinned by continued growth in wages and employment, as well as additional disposable income from government measures. Overall investment is also will remain supported by the implementation of infrastructure development projects and capital spending in the manufacturing and services sectors. Exports are projected to remain weak given the subdued global demand.
On a quarter-on-quarter seasonally-adjusted basis, the GDP grew by 0.7 percent, slowing from a 1.0 percent expansion in the previous three months and marking the weakest growth in three quarters.