According to preliminary statistics released by Bank Negara Malaysia, the country recorded an annual economic growth rate of 8.7% in 2022, significantly exceeding market expectations and signaling a robust post-pandemic recovery. At current market prices, Malaysia’s nominal GDP reached RM 1.788 trillion (approx. USD 406.36 billion), translating to a per capita GDP of around USD 12,400.
Q4 Growth Slows to 7%, Nearly Halved from Q3
Despite the strong full-year performance, Malaysia’s GDP growth in the fourth quarter of 2022 slowed to 7%, a sharp decline from the 14.2% recorded in Q3. Multiple key sectors experienced a deceleration in growth momentum:
Manufacturing: rose by 3.9% in Q4, down from 13.2% in Q3 (a drop of 9.3 percentage points)
Construction: grew by 10.1%, compared to 15.3% in Q3 (down 5.2 points)
Services: expanded by 8.9%, a decline from 16.7% in Q3 (down 7.8 points)
Mining: slowed from 9.2% to 6.8%
Agriculture: eased slightly from 1.2% to 1.1%
Economic Slowdown Across Southeast Asia in Q4
Similar trends were observed across Southeast Asia in Q4 2022. According to official data:
Philippines: GDP grew 7.2%, down from 7.6% in Q3 (a decline of 0.4 percentage points)
Indonesia: slowed from 5.72% in Q3 to 5.02% in Q4 (a drop of 0.7 points)
These figures suggest that while regional economies continued to expand, slowing global demand and inflationary pressures have weakened growth momentum.
Outlook: A Balancing Act Between Challenges and Opportunities
Malaysia delivered an impressive economic performance in 2022. However, rising global uncertainties, persistent inflation, and softening external demand pose risks to growth in 2023. Policymakers are expected to focus on stabilizing domestic demand, attracting foreign investment, and promoting high-tech industry transformation to maintain economic resilience and long-term competitiveness.
