Malaysia’s Export Growth Expected to Continue in Q2 2024

By Loshinniy Nair S. Baskaran,

Kuala Lumpur, 17th August – Malaysia is projected to maintain strong export performance in the second quarter of 2024, despite a sluggish global market environment.

Bank Muamalat’s Chief Economist, Dr. Mohd Afzanizam Abdul Rashid, highlighted that nominal exports are likely to grow by 5.8%, while nominal imports could see a significant 15% increase. This rise in imports suggests a growing dependency on foreign goods, which may reduce net exports and overall GDP growth.

Nevertheless, the trade surplus is expected to remain positive.Domestically, Malaysia’s GDP is anticipated to expand by 5.8% in Q2 2024, bolstered by robust internal demand and increased investment activities.

The government’s continued infrastructure development and supportive fiscal policies are seen as key drivers of this growth. However, Dr. Mohd Afzanizam cautioned that external risks, such as fluctuating commodity prices and global economic uncertainties, could still pose challenges to Malaysia’s economic outlook.

As Malaysia navigates these external pressures, the domestic economy’s resilience and the government’s proactive measures will be crucial in sustaining economic momentum through the rest of the year.

The focus will likely remain on enhancing local industries’ competitiveness and diversifying export markets to mitigate any potential adverse effects from global economic shifts, as stated in Bernama.