Malaysia Not Seeing Two-Speed Economy As Growth Remains Broad-Based -- Economist

KUALA LUMPUR, July 15 (Bernama) -- Malaysia is not showing signs of a two-speed economy despite heightened global trade tensions and geopolitical uncertainties, with growth continuing to be supported by broad-based contributions from the manufacturing, services and construction sectors.

Hong Leong Investment Bank (HLIB) chief economist Felicia Ling said Malaysia’s economic expansion continues to be underpinned by diverse growth drivers, with manufacturing, services and construction all contributing to the country’s resilience despite external uncertainties.

“I think that a two-speed economy is not very obvious in Malaysia, to be honest. Such a pattern is more obvious for other countries like Korea, for example,” she said during a question-and-answer session after an economic briefing organised virtually by the Institute of Chartered Accountants in England and Wales (ICAEW) Malaysia here, today.

Ling said Malaysia’s diversified growth profile helps cushion the economy against external headwinds, with multiple sectors contributing to expansion instead of relying on a single industry.

“We’re still seeing quite diversified growth contributors in Malaysia,” she said.

Ling said the manufacturing sector continues to benefit from the global artificial intelligence (AI) cycle, particularly through stronger semiconductor-related exports, while the services sector remains supported by resilient domestic demand and consumption.

She said that the services sector accounts for more than 50 per cent of Malaysia’s economic output and remains a key pillar of growth alongside manufacturing.

Ling said that although construction activity is expected to moderate in the second half of the year, the slowdown is largely due to a high base effect following strong expansion last year rather than weakening investment momentum.

“We are still seeing investments coming in, and they are still being implemented on the ground as well, both from foreign and domestic sources. So we still see data centres coming in, and we still see public projects ongoing as well,” she added.

-- BERNAMA