Gross Domestic Product Fourth Quarter 2012 (Updated : 20/02/2013)

ECONOMIC GROWTH

The Malaysia's economy expanded at a faster pace of 6.4 per cent as compared to 5.3 per cent in the preceding quarter. All sectors registered positive growth with the Services, Manufacturing and Construction sectors continued to be the key drivers in the supply side.

The continuous double-digit growth in Gross Fixed Capital Formation (GFCF) has spurred the expansion on demand side.

Throughout the year, the economy has enhanced to 5.6 per cent after registering 5.1 per cent in 2011.

SERVICES

Services sector registered a growth of 6.3 per cent underpinned by Finance & Insurance at 10.9 per cent which was augmented by insurance and fee based activities. During the quarter, Wholesale & Retail Trade grew to 2.2 per cent attributed by the steady retail businesses. Meanwhile, Business Services posted a growth of 7.3 per cent induced by professional segment which relates to construction and oil & gas activities. The Communication sustained at 8.5 per cent supported by higher usage of data communication. Concurrently, the Government Services rose to 11.4 per cent from 11.0 per cent in the last quarter.

In 2012, the Services sector posted a growth of 6.4 per cent against 7.0 per cent in the previous year. Finance & Insurance was the prime mover of the Services sector in the current year.

MANUFACTURING

Manufacturing sector advanced impressively to 5.8 per cent in the current quarter after registering 3.3 per cent in the previous quarter. All the sub-sectors posted positive growth with an exception for Textiles, Wearing Apparel & Leather products. Transport Equipment & Other Manufactures which accounted for 16.0 per cent of share to Manufacturing sector, registered a growth of 10.7 per cent in this quarter. In addition, Petroleum, Chemical, Rubber & Plastic products increased further to 5.2 per cent driven by the chemicals and refined petroleum products. The sturdy performance in Non-Metallic Mineral Products, Basic Metal & Fabricated Metal products at 10.6 per cent was largely fuelled by fabricated metal products which is in line with the robust growth in construction activity.

Annual growth for this sector expanded to 4.8 per cent primarily led by Petroleum, Chemical, Rubber & Plastic products (5.5 per cent). 

CONSTRUCTION

The Construction sector continued its expansionary drive to attain an increase of 18.1 per cent which was largely backed by Civil Engineering and Residential. Strong performance of Civil Engineering at 26.9 per cent was propelled by the infrastructure and oil & gas activities. The increasing high-end housing development projects have elevated the Residential growth to 22.9 per cent.

A vibrant growth of 18.5 per cent was recorded by the Construction sector in 2012 which was spearheaded by Civil Engineering at 27.6 per cent.

AGRICULTURE

In this quarter, Oil Palm, Livestock and Fishing sub-sectors strongly influenced the growth of 5.6 per cent in Agriculture sector.

The Oil Palm sub-sector accelerated to 11.7 per cent mainly due to the increase in the production of crude palm oil. Strong demand for poultry and cattle that associate with festive seasons and school holidays has resulted to 11.7 per cent growth in Livestock sub-sector. Fishing sub-sector has edged up to 5.6 per cent as a consequence of higher production in marine fishing.

On annual basis, the Agriculture sector moderated to a marginal growth of 0.8 per cent against 5.9 per cent in 2011.

MINING AND QUARRYING

Mining and Quarrying sector rebounded to 4.3 per cent, the highest growth since second quarter of 2007. The turnaround in the production of natural gas (6.0 per cent) and crude oil (3.9 per cent) has bolstered the mining activity in this quarter.

This sector made a breakthrough of 1.4 per cent this year in contrast to negative 5.7 per cent in the previous year.

FINAL CONSUMPTION EXPENDITURE

Final Consumption Expenditure eased to 4.8 per cent against 7.3 per cent in the last quarter. Private Final Consumption Expenditure grew to 6.1 per cent that was largely reinforced by food & beverages, housing & utilities, communication and transport services.

Government Final Consumption Expenditure moderated to 1.1 per cent from 2.3 per cent in the third quarter of 2012. The milder growth was due to the contraction in expenditure on supply and services.

After registering 8.9 per cent annual growth in 2011, the Final Consumption Expenditure eased slightly to 7.1 per cent this year.

GROSS FIXED CAPITAL FORMATION

GFCF with a notable growth of 15.0 per cent in this quarter has continued its double-digit momentum boosted by Structure and Machinery & Equipment. Private sector which accounted for 44.2 per cent of GFCF registered a sound growth of 20.2 per cent in this quarter. Meanwhile, Public sector rose to 11.1 per cent.

GFCF recorded a remarkable growth of 19.9 per cent in 2012 after registering 6.5 per cent in 2011. For the whole year of 2012, the Private sector led the investment with a share of 58.0 per cent.

EXPORTS AND IMPORTS

Exports remained sluggish at negative 1.5 per cent amidst an improvement from negative 3.0 per cent in the preceding quarter. Imports experienced a marginal decline of 0.9 per cent, the lowest since the third quarter of 2009.

Mirrored by the slower pace of external demand in 2012, Exports recorded 0.1 per cent growth while Imports registered 4.5 per cent.

REVISIONS

Data for the third quarter of 2012 have been revised particularly in the following sectors: Services and Manufacturing.