Encouraging growth, stable labour market ensure economy on track, says DOSM

Encouraging growth, stable labour market ensure economy on track, says DOSM

KUALA LUMPUR (Nov 30): Malaysia’s encouraging economic growth and stable labour market situation ensure the country’s economy remains on track, said the Department of Statistics Malaysia (DOSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said Malaysia’s economy expanded by 14.2% in the third quarter of 2022 (3Q2022), driven by an encouraging performance in all economic sectors, primarily the services and manufacturing sectors.

“The growth was supported by continued expansion in domestic demand, a firm recovery in the labour market, and resilience in external demand.

“The lower base in the third quarter of the previous year also contributed to this growth,” he said in a statement following the release of the Malaysian Economic Statistics Review (MESR) Vol 11/2022.

Mohd Uzir said total trade rose by 31.4% to RM256.9 billion in September, compared with RM195.5 billion in the same quarter last year.

Exports reached RM144.3 billion, an increase of 30.1%, while imports were registered at RM112.6 billion, a growth of 33.0%.

“The trade balance increased by 20.9% (RM31.7 billion) from the previous year,” he said.

Meanwhile, total trade continued to rise with a double-digit growth in October, rising 21.1% and reaching RM245.2 billion from RM202.4 billion in the preceding year, Mohd Uzir said.

Commenting on sectoral performances, the chief statistician said the industrial production index for 3Q2022 showed a double-digit growth of 12.2% versus the same period last year.

He said the labour force continued to expand in 3Q2022, registering 16.44 million persons versus 16.02 million in the previous corresponding quarter.

“Subsequently, the labour force participation rate (LFPR) increased by 1.1 percentage points to mark 69.4% over the same quarter of 2021 (68.3%).

“On the same note, the LFPR for the quarter was above pre-pandemic levels, and was the highest rate recorded since 4Q2019’s 69.1%,” he added.

Mohd Uzir said external factors remained the major challenges for the country, particularly rising prices due to the Russia-Ukraine crisis and shortages in production or the supply chain caused by the Covid-19 pandemic.

He said the leading index in September remained above 100.0 points, recording an increase of 0.3% or equivalent to 0.3 point, to register 109.9 points compared with 109.6 points in September 2021.

“Hence, Malaysia’s economy is expected to be on track despite uncertainties over the global economy.

“In addition, the business tendency statistics highlighted that the business situation remains upbeat in 4Q2022, with the confidence indicator continuing to register positive momentum of 3.2% after registering 4.7% in 3Q2022,” he added.

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