Strong GDP growth proves Malaysia’s resilience, says Guan Eng

Finance Minister Lim Guan Eng says Malaysia’s GDP achievement also highlights the effectiveness of institutional reforms carried out by PH.

KUALA LUMPUR: Malaysia’s second quarter 2019 gross domestic product (GDP) growth, which expanded to 4.9% year-on-year from 4.5% in the previous quarter, showed the country’s resilience amid the challenging global environment, the finance ministry said.

In beating market expectations, it also highlighted the effectiveness of institutional reforms carried out under the leadership of Prime Minister Dr Mahathir Mohamad, its minister, Lim Guan Eng, said.

Lim said the GDP growth was above market consensus of 4.7% as compiled by Bloomberg.

“This is especially evident when several of Malaysia’s major trade partners are experiencing a synchronised growth slowdown caused by multiple factors, including the ongoing China-US trade war.

“Indeed, Malaysia is one of the few economies in the region that experienced faster growth in the second quarter compared to the previous quarter,” he said in a statement today.

Lim said the second quarter GDP growth was supported by solid domestic demand growth of 4.6% year-on-year, which was faster than the 4.4% rate recorded in the first quarter of the year.

However, he said that while Malaysia’s growth was encouraging, the government would not ignore the high risks associated with the escalating China-US trade war.

Lim said Malaysia was focused on growing the domestic economy sustainably and would prepare contingent expansionary measures, when necessary, to counter any adverse impact from the trade war.

“The government’s success in managing its finances prudently through its reforms over the past year will allow Malaysia to respond appropriately if required.

“The government is mindful of the weakening global demand and its effects on the domestic economy,” he said.