Key indicators show promising recovery momentum in Q4 and into 2022 - DOSM

KUALA LUMPUR: Malaysia's key economic indicators signalled a promising recovery momentum towards the fourth quarter of the year (Q4) and into 2022, according to the Department of Statistics Malaysia (DOSM).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said despite registering a decline of 4.5 per cent in gross domestic product (GDP) in Q3, the continuous shift of the National Recovery Plan (NRP) cushioned the downward impact on the economy.

He said a smaller decline of 1.1 per cent was recorded in September 2021 compared to August 2021 (-4.7 per cent) and July (-7.6 per cent).

The economy grew 3.0 per cent from January to September 2021 compared to a negative 6.4 per cent last year.

"In view of external trade, Malaysia's current account balance (CAB) in Q3 2021 recorded a surplus of RM11.6 billion, owing to a higher deficit in the income accounts.

"Goods account registered a higher surplus of RM41.2 billion as the exports declined at a slower rate than imports," he said in a statement today.

As for foreign direct investment (FDI), Mohd Uzir said Malaysia continued to record an inflow of RM12.8 billion from RM8.2 billion, while direct investment abroad (DIA) turned around to a net inflow of RM4.7 billion from a net outflow of RM4.0 billion in the previous quarter.

Meanwhile, total trade increased 18.1 per cent to RM546.2 billion in Q3 2021 compared to the same quarter last year, attributed to the resumption of domestic economic activity and continuous external demand.

During the same period, imports grew 21 per cent, outpacing the exports growth of 15.8 per cent to register RM242.5 billion and RM303.7 billion, respectively.

Malaysia's Industrial Production Index (IPI) for Q3 2021 slipped 1.1 per cent year-on-year (y-o-y) following negative growth in all the components, namely mining, manufacturing and electricity.

However, the IPI rebounded 2.5 per cent y-o-y in September, largely buoyed by the 4.0 per cent rise in the manufacturing index.

In addition, the manufacturing sales value in Q3 2021 rose 6.4 per cent to RM381.8 billion y-o-y and posted a better y-o-y growth of 11.6 per cent in September.

Meanwhile, revenue for the services sector fell 8.7 per cent y-o-y to RM391.0 billion in Q3 2021 against the backdrop of slower demand as most states remained in Phase 1 or Phase 2 of the NRP for most parts of the quarter.

Mohd Uzir said the Consumer Price Index (CPI) posted an increase of 2.2 per cent in Q3 2021, while Producer Price Index (PPI) rose 11.8 per cent y-o-y.

He said the number of employed persons recorded a marginal increment of 1.2 per cent y-o-y to record 15.27 million persons.

The unemployment rate remained at 4.7 per cent as the number of unemployed persons increased marginally by 0.2 per cent.

-- BERNAMA