Wednesday, May 18, 2011

#Flash* Malaysian economy grows at slower pace of 4.6% in 1Q

KUALA LUMPUR: The Malaysian economy grew at a slower pace of 4.6% in the first quarter of 2011 compared with the 4.8% in the fourth quarter of 2010.

Bank Negara Malaysia said on Wednesday, May 18 all major economic sectors, except the primary commodity sector, continued to expand during the quarter, albeit at a more moderate pace.

It said the expansion in domestic demand was supported by higher private sector spending, while external demand also recorded a stronger growth during the quarter, mainly as a result of regional demand for commodities and non-electrical and electronic (E&E) products.

Growth in the services sector was sustained at 5.9% (4Q 10: 6.1%) with favourable expansion across most sub-sectors, supported by the improvement in domestic and external demand conditions.

The manufacturing sector expanded by 5.4% (4Q 10: 6.2%), supported mainly by growth in the export-oriented industries and the sustained performance of selected domestic-oriented industries.

The CONSTRUCTION [] sector registered growth of 3.8% (4Q 10: 5.6%), supported by continued expansion across all sub-sectors.

Output in the agriculture sector fell at a slower pace of -0.3% in the first quarter (4Q 10: -3.9%), reflecting the decline in crude palm oil output given continued unfavourable weather conditions.

The mining sector contracted further by 3% (4Q 10:'' -1.2%) following lower production of crude oil due to scheduled maintenance and upgrading works.

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