Bank Negara Malaysia (BNM) has published a report on ‘Malaysian Economic and Financial Developments’ for the first quarter of 2022 (1Q22) which saw economic growth increase positively by 5%.
The excellence achieved was the result of continued support in domestic demand as economic activity resumed after travel restrictions were lifted.
Among the essence of the report are:
The job market recovery saw the unemployment rate fall 4.1% from 4.3% in 4Q21.
The services and manufacturing sectors expanded 6.5% and 6.6% and the quarter -on -quarter adjustment basis added 3.9% from 4.6% in 4Q21.
The inflation rate moderated to 2.2% from 3.2% in 4Q21 while core inflation rose to 1.7% from 0.8% in the previous quarter.
The foreign exchange rate for the Ringgit Malaysia (RM) depreciated 0.7% against the United States (US) dollar, which was generally in line with regional currency movements.
The 2022 outlook for Malaysia's domestic economic growth is projected at 5.3% to 6.3% as announced in March.
Arguing on the inflation rate, the moderation noted was the effect of the base decline in low domestic retail fuel prices last year as well as the base effect of the electricity tariff rebates carried out in 2020.
In addition, the core inflation record reflected the current price adjustment of higher costs and improved demand conditions in food items due to supply -related factors such as high commodity prices.
Meanwhile, Malaysia's growth momentum is seen to remain despite the weaker-than-expected global growth due to geopolitical conflicts, supply chain disruptions as well as the still unresolved Covid-19 situation and financial market volatility.
