Malaysia records strongest economic performance in 12 years in 2024: DOSM

The country's economy grew by 5.1% in 2024, primarily driven by double-digit expansion in Gross Fixed Capital Formation (GFCF) and private consumption expenditure.

Malaysia’s economy grew by 5% in the fourth quarter of 2024, slightly lower than the 5.4% recorded in Q3.

Despite this, the country achieved an overall growth of 5.1% for 2024, making it the strongest economic performance in 12 years.

This growth was primarily driven by double-digit expansion in Gross Fixed Capital Formation (GFCF) and private consumption expenditure, according to the Department of Statistics Malaysia (DOSM). 

3 main growth drivers

• Private final consumption expenditure remained steady: Household spending grew by 4.9%, supported by higher expenditures on transport, restaurants & hotels, and food & beverages.
  
• Investment surged: GFCF grew by 12%, led by growth in structures (19.5%), machinery & equipment (4.1%), and other assets (5.6%).
  
• Exports and imports: Exports rose by 8.5%, while imports increased 8.9%, increase from 2023.

Key economic highlights

Among key sectors, the services sector grew by 5.5% in Q4, mainly due to increased activity in wholesale & retail trade (4.4%), transportation & storage (10.7%), and finance & insurance (5.3%).

Meanwhile, the manufacturing sector grew by 4.2%, driven by electrical & electronic products (7.3%), albeit at a slower pace than in Q3.

What's notable is that the construction saw the biggest jump, rising 20.7%, thanks to strong growth in residential buildings (30.3%) and non-residential projects (23.9%). On the other hand, agriculture shrank by 0.5%, while mining dipped by 0.9%.

Read the full report here.

Lead image/ Department of Statistics Malaysia Official Portal