Malaysia’s GDP expanded further 5.0 per cent as compared to 3.6 per cent in the previous quarter. In terms of seasonally adjusted, GDP moderated at 3.9 per cent (Q4 2021: 4.6%) in this quarter. Correspondingly, the monthly economic performance showed a better growth from January to March 2022. GDP performance in January 2022 grew 4.3 per cent, risen to 5.2 per cent and 5.4 per cent in February and March 2022 respectively. From the current economic standing, the economic performance for the first quarter of 2022 has surpassed the level of first quarter 2019 by 5.2 per cent or RM17.9 billion.
The economic performance increased further in this quarter in tandem with a robust growth in Services sector. This was supported by higher household consumption which reflected from the improvement of consumers’ confidence level. Moreover, further recovery in labour market and continued expansion on external front has led to the economic growth despite of challenging environment especially inflation and global supply chain disruption.
The economic performance in the first quarter of 2022 on the supply side was driven by the continuous growth of Services, Manufacturing and Agriculture sectors. On the demand side, the growth was underpinned by the expansion in the household consumption expenditure and a turn around in Gross fixed capital formation in this quarter.
In terms of sectoral performance, the Services sector continued to be the main impetus with a robust growth of 6.5 per cent (Q4 2021: 3.2%). The expansion was fuelled by stronger growth in major sub-sectors, such as Transportation & storage, Wholesale & retail trade and Food & beverage. Nevertheless, Finance descended 2.1 per cent (Q4 2021: 1.2%) in this quarter. The overall Services sector expanded by 5.5 per cent (Q4 2021: 5.1%) in terms of seasonally adjusted.
The Manufacturing sector elevated 6.6 per cent (Q4 2021: 9.1%) in the first quarter of 2022. The favourable performance was mainly driven by major sub-sectors namely Electrical, electronic & optical products at 15.4 per cent (Q4 2021: 16.4%), Non-metallic mineral products, basic metals & fabricated metal products at 5.3 per cent (Q4 2021: 5.8%) and Wood products, furniture, paper products and printing at 6.6 per cent (Q4 2021: 5.6%). Nevertheless, Petroleum, chemicals, rubber & plastics products declined 0.5 per cent (Q4 2021: 6.5%) in this quarter. Additionally, this sector grew 1.8 per cent (Q4 2021: 6.6%) in terms of seasonally adjusted.
The Agriculture sector rose marginally 0.2 per cent, as compared to 2.8 per cent in the preceding quarter. The performance was influenced by the Oil palm, Fishing and Livestock sub-sectors, which grew 3.9 per cent (Q4 2021: 4.8%), 3.5 per cent (Q4 2021: -0.5%), and 1.5 per cent (Q4 2021: 0.2%), respectively. However, Rubber dropped 18.6 per cent (Q4 2021: -18.8%) in the first quarter of 2022. In terms of seasonally adjusted, this sector registered a decline of 3.2 per cent (Q4 2021: 1.7%).
On the contrary, the Mining and quarrying sector further decreased 1.1 per cent from a marginal decline of 0.6 per cent in the preceding quarter. The downturn was led by the Crude oil and condensate sub-sector, which contracted to 7.4 per cent (Q4 2021: -6.6%). Nonetheless, Natural gas increased 3.3 per cent (Q4 2021: 3.4%) in this quarter. This sector rebounded to 2.9 per cent (Q4 2021: -1.6%) in terms of seasonally adjusted.
The Construction sector decreased 6.2 per cent as compared to a strong contraction of 12.2 per cent in the previous quarter. The performance was attributed to a decline of 16.1 per cent (Q4 2021: -18.8%) in Civil engineering and 15.3 per cent (Q4 2021: -24.4%) in Residential building subsectors. Nevertheless, Non-residential buildings and Specialised construction activities increased 0.9 per cent (Q4 2021: -12.1%) and 10.4 per cent (Q4 2021: 9.2%), respectively. In addition, the Construction sector grew 8.9 per cent (Q4 2021: -1.9%) in terms of seasonally adjusted.
Private final consumption expenditure posted a stronger growth of 5.5 per cent (Q4 2021: 3.7%) in the first quarter of 2022. In terms of seasonally adjusted, the overall performance of Private final consumption expenditure increased 4.6 per cent (Q4 2021: 4.3%). This growth was attributed to a double-digit growth in consumption for Communication (11.8%) and Restaurants & hotels (10.9%). Besides that, Transport (8.9%) and Food and non-alcoholic beverages (4.6%) also edged up in this quarter.
Gross fixed capital formation (GFCF) or investment on fixed assets recorded a marginal positive of 0.2 per cent (Q4 2021: -3.0%) in this quarter that was influenced by the double-digit growth in Machinery & equipment (12.0%). The gradual improvement of GFCF can be seen as a catalyst for higher economic capacity to uplift the production of the future output. Conversely, Structure and Other assets has weighed down the overall GFCF performance by registering a decline of 7.9 per cent and 0.9 per cent, respectively. GFCF by sector, indicates a marginal increase of 0.4 per cent in Private sector, whereas Public sector showed a decrease of 0.9 per cent in the first quarter of 2022. In terms of seasonal adjusted, this sector registered an increase of 5.0 per cent (Q4 2021: 4.4%).
Government final consumption expenditure accelerated by 6.7 per cent (Q4 2021: 1.6%) led by spending on supplies and services. Moreover, this sector rebounded to 7.4 per cent (Q4 2021: -3.8%) in terms of seasonally adjusted.
Exports moderated 8.0 per cent (Q4 2021: 13.0%) influenced by Exports of goods which eased 7.1 per cent (Q4 2021:12.9%). On the other hand, Imports grew stronger 11.1 per cent (Q4 2021: 14.5%) following better performance in import of goods at 11.3 per cent (Q4 2021: 15.2%). This has resulted a contraction of 26.5 per cent in Net exports as compared to 0.8 per cent in the preceding quarter.
Overall, Malaysia's economy prospect is picking up momentum and anticipating to play a pivotal role in shaping the national economy in the coming months. Leading Index (LI) recorded an upward trend indicating that Malaysia's economic recovery remained intact. This is in line with the consistent growth rate of the key economic indicators such as employment and external trade.
Malaysia's overall economic performance is picking up momentum and is anticipated to recover gradually throughout 2022 as the country transitions to an endemic phase. Furthermore, the relaxation of restrictions and reopening of borders announced on 1 st April 2022, would encourage social engagement activities and expected to lead better impact on the economy.
|PERCENTAGE CHANGE FROM CORRESPONDING QUARTER OF PRECEDING YEAR|
|2020||2021||Q1 2021||Q2 2021||Q3 2021||Q4 2021||Q1 2022|
|PERCENTAGE CHANGE FROM PRECEDING QUARTER|
|Seasonally Adjusted GDP||2.4||-0.8||-2.7||4.6||3.9|
The full publication of Gross Domestic Product, First Quarter 2022 can be downloaded through eStatistik portal.
For more details, please refer to the Department's portal: www.dosm.gov.my.
THE OFFICE OF CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
13 MAY 2022
Mohd Yusrizal Ab Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : email@example.com