KUALA LUMPUR – Malaysia is set to achieve the 2023 gross domestic product growth target of 4% to 5% based on the good economic momentum seen so far, the Statistics Department (DoSM) said.
Chief statistician Datuk Seri Mohd Uzir Mahidin said consumer spending sentiment is normally at an above average level in the fourth quarter (4Q) of the year compared to other quarters.
“It is during 4Q that consumers tend to spend more than usual, including for back-to-school, New Year, and festive spending, with demand for goods being higher.
“Demand is the largest component of GDP, so we expect there’s room for growth in 4Q GDP performance,” he said prior to being interviewed on Bernama TV’s Ruang Bicara programme last night.
Asked whether GDP growth for 4Q is forecast to be higher than in 3Q, Uzir said it should be gauged based on available data.
Looking at the Industrial Production Index for October, he said, the mining, electricity and manufacturing sectors recorded growth, while Malaysia’s trade also expanded and continued to show a surplus.
It was reported that the trade surplus reached RM12.87 billion in October, marking the 42nd consecutive month of trade surplus since May 2020.
At the same time, unemployment has seen a decline, he continued. The country’s unemployment rate in October stood at 3.4%.
“So the data for October signals that the Malaysian economy is moving towards growth. Up to this month (January), we have seen economic activities in November and December remain in growth territory .
“GDP growth for the first three quarters combined was already 3.9%. Therefore, I expect the country’s economic growth for 2023 to go in the direction that the government has targeted,” he said.
According to Bank Negara Malaysia, the Malaysian economy grew by 3.3% in the third quarter (second quarter: 2.9%), while overall, the economy expanded by 3.9% in the first three quarters of 2023.
On the Central Database Hub (Padu), which went live on January 2, Uzir said that up to 8pm on January 3, the system had recorded a total of 396,181 registered users. Malaysians have been given until March 31 to update their information in the system.
Based on the response towards Padu usage to date, he expressed confidence that the target of getting 29 million Malaysian citizens to register will be achieved.
“To ensure that no one is left out from benefitting from the implementation of Padu, the (federal) government will conduct engagement sessions with leadership at the state government level to achieve the target set,” he said.
He added that feedback received by DoSM and its staff on the ground so far has indicated positive reception for the system in rural areas, aided by the efforts of the Information Department. – January 4, 2024