Malaysia's economy continued to excel in the first quarter of the year, with stronger-than-expected growth.
Most recently, Bank Negara Malaysia (BNM) and the Department of Statistics reported that gross domestic product (GDP) for the period from January to March grew by 5.6% from a year ago.
The growth recorded also exceeded Reuters expectations which projected GDP to grow 4.8% in the quarter.
Among the factors supporting growth are household spending that continues to grow strongly, continued investment activities and increased foreign tourist arrivals.
In addition, the labor market is also seen to continue to improve in the first quarter of 2023 and is predicted to remain supportive of domestic demand.
As a result, Malaysia is expected to achieve the central bank's GDP target of 4% to 5% growth in 2023 as a whole.
The economy's resilience in the face of global uncertainty has proven BNM's policy tightening measures last week were correct after they paused earlier this year.
Meanwhile, BNM Governor Nor Shamsiah Yunus said that the economy is no longer in crisis and is actually continuing to gain strength.
Thus, it is necessary and appropriate that the policy be re-measured to ensure that the central bank continues to be on the path of sustainable growth.
At the current level of OPR of 3%, the monetary policy stance is accommodative and continues to support the economy, said the BNM Governor.
