Services sector strengthened further in this quarter and remained as the key driver on the production side. Meanwhile, the momentum in Manufacturing and Construction sectors also have boosted the overall economic performance.

On the expenditure side, the economy was spearheaded by Private Final Consumption Expenditure and Gross Fixed Capital Formation while the acceleration in Net Exports has reinforced the GDP in this quarter.

For the three quarters of 2016, Malaysia’s economy grew 4.2 per cent with a value of RM817.5 billion at constant and RM901.6 billion at current prices.

GDP by Production Approach

Services sector recorded a sound performance in this quarter by registering a growth of 6.1 per cent. Wholesale & Retail Trade (6.7%) and Information & Communication (7.6%) remained as the main catalysts of Services sector. This sector performance was further supported by Finance and Insurance which soared to 5.0 per cent.

Manufacturing sector increased to 4.2 per cent backed by Electrical, Electronic & Optical products (6.6%) and Petroleum, Chemical, Rubber & Plastic products (4.7%). Moreover, Vegetable & Animal Oils & Fats and Food Processing improved to a marginal growth 0.8 percent (Q2 2016: -4.0%) supported by palm oil products.

Construction sector grew 7.9 per cent (Q2 2016: 8.8%). Civil Engineering remained robust by registering a growth of 16.7 per cent (Q2 2016: 18.9%). Furthermore, Residential Buildings advanced further to 13.0 per cent propelled by properties development.

GDP by Expenditure Approach

Private Final Consumption Expenditure increased to 6.4 per cent from 6.3 per cent in the last quarter. The growth was largely attributed by the higher consumption on food & beverages, housing & utilities and transportation.

Gross Fixed Capital Formation (GFCF) eased to 2.0 per cent  due to the moderation in Machinery & Equipment (0.9%) and the decline in Other Assets (-12.5%). Nevertheless, Structure remained strong by recording 5.0 per cent in this quarter. Public sector dropped 3.8 per cent which has influenced towards the modest growth of GFCF in this quarter. Meanwhile, Private sector recorded a growth of 4.7 per cent (Q2 2016: 5.6%).

Exports decreased to 1.3 per cent in this quarter, mirrored by the decline in exports of goods and services. In addition, Imports registered a negative growth of 2.3 per cent due to the contraction in imports of goods and services.