Gross Domestic Product Second Quarter 2012 (Updated : 15/08/2012)


ECONOMIC GROWTH

The Malaysia's economy strengthened further to 5.4 per cent against 4.9 per cent in the preceding quarter led by continued expansion in the Services and Manufacturing sectors. The robust growth in Gross Fixed Capital Formation (GFCF) has driven the demand side.

SERVICES 

The Services sector rose to 6.3 per cent supported by Wholesale & Retail Trade and Finance & Insurance. The growth of 5.9 per cent in Wholesale & Retail Trade was led by the Retail segment. In addition, the growth in Motor Vehicles segment accelerated to 8.4 per cent during the quarter (Q1 2012: 0.2 per cent) propelled by the higher sales of motor vehicles.

Finance & Insurance expanded to 6.6 per cent boosted by the higher fee income on banking activities and increase in premium income on insurance activity. Meanwhile, Business Services picked up to 8.8 per cent underpinned by professional services related to engineering activities.

MANUFACTURING

Manufacturing sector increased to 5.6 per cent in this quarter. The Petroleum, Chemical, Rubber and Plastic Products (9.6 per cent) was the main catalyst due to the higher production in refined petroleum products.

Moreover, the Transport Equipment & Other Manufactures continued to register a growth of 7.5 per cent led by double-digit production of motor vehicles. The Electrical & Electronic grew by 3.5 per cent as compared to marginal 0.4 per cent in previous quarter. The growth was in tandem with the improved demand from United States, Japan and China.

CONSTRUCTION

The Construction sector expanded remarkably at 22.2 per cent from 15.5 per cent in the previous quarter. The growth was spearheaded by the robust performance in the Civil Engineering and Residential.

The vibrant performance of Civil Engineering at 39.8 per cent was spurred by major infrastructure projects mainly in Sabah, Melaka, Pulau Pinang and Perak. During the quarter, Residential continued the strong momentum at 20.1 per cent driven by the high-end residential projects in Klang Valley.

MINING AND QUARRYING

The value added growth of 2.3 per cent in Mining and Quarrying sector was supported by the higher production of crude oil at 8.8 per cent. However, natural gas production declined further to 4.4 per cent.

AGRICULTURE

The Agriculture sector contracted to 4.7 per cent due to the decline in the production of Oil Palm, Forestry and Rubber. Oil Palm registered a negative growth of 17.5 per cent attributed by lower yield of fresh fruit bunches. Smaller decline of 2.1 per cent was recorded in the Forestry due to the sluggish production of logs at 3.5 per cent. The wintering season and declining price has contributed to the negative growth of Rubber at 2.1 per cent.

Nevertheless, Other Agriculture advanced to 9.6 per cent supported by vegetables, paddy and fruits. Livestock recorded a growth of 7.7 per cent backed by poultry and cattle.

FINAL CONSUMPTION EXPENDITURE

Final Consumption Expenditure grew at 8.9 per cent from 7.4 per cent in first quarter of 2012.

Private Final Consumption Expenditure posted a growth of 8.8 per cent led by the Transport, Communication and Food & Non-alcoholic Beverages. The exceptional performance in Transport (10.1 per cent) was attributable to the improvement in consumption of motor vehicles. The rising expenditure on telecommunication equipments, broadband and internet services reflected in the Communication (13.3 per cent). Meanwhile, the Government Final Consumption Expenditure grew by 9.4 per cent due to higher expenditure on supplies and services.

GROSS FIXED CAPITAL FORMATION

The Gross Fixed Capital Formation reached a new high growth of 26.1 per cent from 16.1 per cent in the previous quarter. The acceleration was boosted by the expenditure on Structure and Machinery & Equipment which was in line with the buoyant performance of Construction sector. In addition, significant investment in the oil & gas activity enhanced further the growth in GFCF.

Private sector drove the GFCF growth at 24.6 per cent with a share of 64.8 per cent. Whilst, the Public sector rose to 28.9 per cent accounting for 35.2 per cent of share to GFCF.

EXPORTS AND IMPORTS

Exports registered a growth of 2.1 per cent mainly supported by the products of Machinery & Transport Equipment; Mineral Fuels & Lubricants and Chemicals.

Meanwhile, Imports stepped up to 8.1 per cent driven by higher imports of Machinery & Transport Equipment and Mineral Fuel & Lubricants.

REVISION

Data for first quarter 2012 have been revised particularly in the following sectors: Services, Manufacturing, Government Final Consumption and Imports.