Commodity-specific shocks dampen 2Q GDP growth to 4.5 per cent

KUALA LUMPUR: Supply disruptions saw Malaysia registering a slower 4.5 per cent growth for the second quarter (Q2) of 2018 compared with 5.8 per cent in the same period a year ago, which was far lower than expected by many economists.

Bank Negara Malaysia (BNM) Governor Datuk Nor Shamsiah Mohd Yunus attributed the reduced growth to commodity-specific shocks in the mining and agriculture sectors.

“The country’s gross domestic product had expanded by 5.4 per cent in Q1 and the median Q2 expectation from economists was of 5.2 per cent,” she said told reporters at her maiden press conference after her appointment as the governor on June 22, having replaced Tan Sri Muhammad Ibrahim.

However, Nor Shamsiah said the services and manufacturing sectors remained the drivers of growth, aided by strong consumer spending following a tax holiday and continued demand for electrical and electronics and consumerrelated products.

“Growth in the mining sector contracted due mainly to unplanned supply outages, while the agriculture sector was affected by production constraints and adverse weather conditions.

“Private sector activity continued to be the primary driver of growth as both private consumption and investment expanded strongly during the Q2,” she added. — Bernama