Gross Domestic Product Third Quarter 2012 (Updated : 16/11/2012)


ECONOMIC GROWTH

The Malaysia's economy grew by 5.2 per cent as compared to 5.6 per cent in the preceding quarter.On the supply side, all sectors registered positive growth except Mining and Quarrying sector. The main contributors were the Services, Manufacturing and Construction sectors.

Meanwhile, the Gross Fixed Capital Formation (GFCF) and Private Final Consumption Expenditure continued to be the main drivers on the demand side.

SERVICES

The Services sector expanded to 7.0 per cent supported by the strong performance of Finance & Insurance and Wholesale & Retail Trade sub-sectors. The growth of 11.8 per cent in Finance & Insurance was attributed by the financial intermediation services and premium income on insurance activity. Additionally, the fee based activities also registered double-digit growth supported by higher demand for financing from businesses and household.

Wholesale & Retail Trade grew by 4.4 per cent backed by the Retail activity in relation with the festive season. Meanwhile, Communication and Business Services remained stable by registering growth of 9.1 and 8.1 per cent respectively.

MANUFACTURING

Manufacturing sector registered 3.3 per cent growth against 5.6 per cent in the last quarter. The main contributor was the Non-Metallic Mineral Products, Basic Metal and Fabricated Metal Products (9.3 per cent) and it was in line with the robust growth in construction activity.

Petroleum, Chemical, Rubber and Plastic Products increased to 2.8 per cent largely attributed by the double-digit growth in plastic products (11.4 per cent). Moreover, a strong performance in production of building and repairing of ships has bolstered the growth in Transport Equipment & Other Manufactures (4.8 per cent).

CONSTRUCTION

The Construction sector remained robust by registering a double-digit growth of 18.3 from 22.2 per cent in the previous quarter. Strong performance in this quarter was underpinned by the Civil Engineering and Residential.

Sturdy performance of Civil Engineering at 28.5 per cent was driven by major projects mainly in Klang Valley, Johor, Sabah and Perak. Residential sustained the strong growth of 16.4 per cent driven by the mixed development projects in Klang Valley, Sabah and Penang. In this quarter, Non-Residential improved further to 13.4 per cent attributed by significant momentum in industrialised projects.

AGRICULTURE

The Agriculture sector rebounded to a marginal growth of 0.5 per cent mainly backed by favourable performance in Livestock, Fishing and Other Agriculture particularly vegetables and fruits.

Furthermore, the turnaround in the production of oil palm to 1.6 per cent from negative 17.5 per cent in the previous quarter has spurred the overall growth of Agriculture sector.

On the contrary, the Rubber sub-sector has dropped further to 15.6 per cent following the decreasing trend in price. The continuous decline in production of logs has resulted in the sluggish performance of Forestry at negative 12.7 per cent.

MINING AND QUARRYING

The Mining and Quarrying sector contracted to 1.2 per cent after registering 2.3 per cent growth in the last quarter. Decline in the production of natural gas (-3.3 per cent) and crude oil (-0.4 per cent) has contributed to this contraction.

FINAL CONSUMPTION EXPENDITURE

Final Consumption Expenditure posted 7.3 per cent of growth from 9.2 per cent in second quarter of 2012. Private Final Consumption Expenditure grew at a slower pace of 8.5 per cent due to moderation in spending on semi-durable and durable goods. However, the consumption on food & beverages and transport & communication services rose in line with the festive season. Besides, expenditure related to interest payment and insurance also increased.

Government Final Consumption Expenditure eased to 2.3 per cent from 10.9 per cent in the last quarter. A slower momentum in this quarter was due to the decline of expenditure particularly on supply and services.

GROSS FIXED CAPITAL FORMATION

The Gross Fixed Capital Formation continued to strengthen at 22.7 per cent boosted by the expenditure on Structure, Machinery & Equipment and Transport. Private sector with a share of 60 per cent drove the GFCF by registering a growth of 22.9 per cent. Meanwhile, the Public sector grew by 22.4 per cent.

EXPORTS AND IMPORTS

Exports declined to 3.0 per cent attributed by lower growth for the products of Machinery & Transport Equipment, Animal & Vegetable Oils & Fats and Manufactured Goods.

Meanwhile, the increase in Imports of 4.4 per cent was driven by higher imports of Machinery & Transport Equipment, Mineral Fuel & Lubricants and Manufactured Goods.

REVISION

Data for the first and second quarter of 2012 have been revised particularly in the following sectors/component: Services, Manufacturing and Government Final Consumption Expenditure.