Published: Fri, May 19, 2017
National | By Rosalie Gross

Malaysia economy grows at fastest pace in two years

Malaysia economy grows at fastest pace in two years

Malaysia's economic growth in the last quarter of 2016 stood at 4.5 percent. Annual consumer price inflation hit an eight-year high in March at 5.1 percent, though it slowed to 4.4 percent in April.

On a sequential basis, a closer measure of the economy's recent momentum, Malaysia's economy grew 1.8% on a seasonally adjusted basis in the latest quarter. "We expect growth to be sustained", Bank Negara Malaysia (BNM) Governor Muhammad Ibrahim told at a news conference. Private-sector consumption expenditure increased 6.6% in the quarter from an increase of 6.1% in the previous quarter, according to the department's data.

The result - much better than the 4.8 percent forecast in a survey by Bloomberg News - marks the third consecutive quarter of improving growth and is the fastest since the start of 2015. - Picture by Yusof Mat IsaKUALA LUMPUR, May 19 ― Bank Negara Malaysia (BNM) suggested today that public perception of inflation tends to be higher than the actual rate, with the bias shaped by their personal experience of paying for food and transport.

"But what we have seen over the past three months is the strong growth in private investment and exports sector - now if these two components, as we move forward, show strong numbers, we will be seeing growth at the higher end of our projection", he added.

Apple's foray into health: Tim Cook testing wearable blood sugar tracker
It is claimed that Apple is now conducting feasibility tests for the medical gadget in the San Francisco Bay Area. Smith said developing such a device has been "the most hard technical challenge I have encountered in my career".

"Public perception of inflation is in fact influenced by frequently purchased price such as food". He noted that there is some uncertainty in global markets, but added that inflation is largely cost driven and not due to demand.

Compared with the previous quarter, GDP rose 1.8% versus the 1.2% economists had forecast.

March exports surged 24.1 percent from a year earlier, slowing just slightly from the 26.5 percent pace set the previous month and nearly double the 13.6 percent expansion in January.

"A recovery in commodity prices should help bolster the current account surplus in the coming quarters, though the surplus is still likely to remain low by past standards", Capital Economics said in a note. USD/MYR was trading at 4.3205 at the time of writing, down 0.13 percent on the day.

Like this: