DOSM: Stable labour market ensures economy on track

The growth is supported by the continued expansion in domestic demand, a firm recovery in the labour market and resilience in external demand.

Datuk Seri Mohd Uzir Mahidin

KUALA LUMPUR: Malaysia’s encouraging economic growth and stable labour market situation ensure the country’s economy remains on track, said the Department of Statistics Malaysia (DoSM).

Chief statistician Datuk Seri Mohd Uzir Mahidin said Malaysia’s economy expanded by 14.2 per cent in the third quarter of 2022 (3Q22), driven by encouraging performance in all economic sectors, primarily the services and manufacturing sectors.

“The growth is supported by the continued expansion in domestic demand, a firm recovery in the labour market and resilience in external demand. The lower base in the third quarter of the previous year also contributed to this growth,” he said in a statement following the release of the Malaysian Economic Statistics Review (MESR) Vol 11/2022.

Mohd Uzir said September 2022’s total trade rose by 31.4 per cent (RM256.9 billion) compared with RM195.5 billion in September 2021.

Exports reached RM144.3 billion, an increase of 30.1 per cent, while imports registered RM112.6 billion, a growth of 33.0 per cent year-on-year.

“Trade balance increased by 20.9 per cent (RM31.7 billion) from the previous year,” he said.

Meanwhile, Malaysia’s total trade continued to rise with double-digit growth in October 2022, rising 21.1 per cent and reaching RM245.2 billion from RM202.4 billion in the preceding year, Mohd Uzir said.

Commenting on sectoral performances, the chief statistician said the Industrial Production Index (IPI) for 3Q22 showed double-digit growth of 12.2 per cent versus the same period last year.

He said the labour force continued to expand in 3Q22, registering 16.44 million persons versus 16.02 million in the previous corresponding quarter.

“Subsequently, the labour force participation rate (LFPR) increased by 1.1 percentage points to mark 69.4 per cent over the same quarter of 2021 (68.3 per cent).

“On the same note, the LFPR for this quarter posted above pre-pandemic levels and was the highest rate recorded since 4Q19’s 69.1 per cent,” he added.

Mohd Uzir said external factors remained the major challenges for the country, particularly in the rising prices due to the Russia-Ukraine crisis and shortage in production or supply chain caused by the Covid-19 pandemic.

He said the Leading Index (LI) in September remained above 100.0 points, recording an increase of 0.3 per cent or equivalent to 0.3 points, to register 109.9 points compared with 109.6 points in September 2021.

“Hence, Malaysia’s economy is expected to be on track despite the uncertainty of the global economy.

“In addition, the Business Tendency Statistics highlighted that the business situation remains upbeat in 4Q22, with the confidence indicator continuing to register positive momentum by 3.2 per cent after registering 4.7 per cent in the third quarter of 2022,” he added.