Malaysia posts strong Q3 growth of 5pc

The Malaysian economy recorded a stronger growth of 5.0 per cent in the third quarter from a revised 4.4 per cent in the second quarter.

Bank Negara Malaysia said the economy will remain on its steady growth trajectory, supported by domestic demand from the private sector.

Domestic demand remained the key driver of growth, expanding by 8.3 per cent while exports turned around to grow by 1.7 per cent.

Most major sectors expanded further in the third quarter, supported by the continued strength in domestic demand and the improvement in trade activity.

The central bank also said that the current account surplus increased to RM9.8 billion in the third quarter, due to a higher surplus in the goods account.

The overall balance of payments registered a larger surplus of RM11.8 billion in the third quarter (2Q 2013: RM1.5 billion).

It said the gradual recovery in the external sector will support growth.