ECONOMY

2022 witnessed the relaxation of COVID-19 restrictions and the reopening of various economic sectors as Malaysia transitioned to the endemic phase. As a result, the Gross Domestic Product (GDP) in Q3/2022 recorded a significant YoY growth of 14.2% to RM383.8 billion, an increase of RM47.6 billion from Q3/2021. Such accelerated growth rates will help in returning the economy to pre-pandemic levels, and noticeable improvements in the labour market will positively encourage domestic demand. The unemployment rate in Q3/2022 stood at 3.7%, an improvement from Q3/2021 (4.7%). This translates to a YoY reduction of 134,400 unemployed persons from Q3/2021. 

Malaysia’s economic production gained momentum from the implementation of the National Recovery Plan (NRP) by the Government to mitigate the negative economic impact of COVID-19, which translated into the significant upward trend recorded in the nation’s economic performance. In this case, the services sector remained the biggest contributor to the country’s GDP at 57.9%, with a YoY growth rate of 16.7%. This is followed by the manufacturing sector, with a GDP share of 24.1% and a yearly growth rate of 13.2%. Overall, the positive GDP growth is supported by Budget 2022 provisions, coupled with the reopening of large areas of the economy and international borders.