Page 160 - Malaysia Baharu 2018
P. 160
Domestic demand continued to and electronics (E&E) cluster. The
anchor growth, supported mainly by construction sector recorded a
private sector expenditure. Private moderate growth of 4.2% (2017: 6.7%)
consumption growth, in particular, due to weaknesses in the property
recorded the fastest rate since 2012 at segment. Growth in the mining sector,
8.1% (2017: 7.0%). Favourable wage however, contracted by 1.5% (2017:
and employment growth continued 1.0%) due to the decline in natural gas
to drive household spending with production, while adverse weather and
additional support from the three- production constraints that affected
month tax holiday (1 June – 31 August) palm oil and rubber production led to
following the zerorisation of the Goods a decline in growth in the agriculture
and Services Tax (GST) rate, as well sector (2018: -0.4%, 2017: 7.2%).
6 | MALAYSIAN ECONOMY as other Government measures such
as the fixing of the retail fuel price of In the labour market, employment
RON95 petrol and special payments growth was strong at 2.5% (2017:
to civil servants and pensioners. 2.0%), amounting to an additional
employment gain of 360,250 persons.
In line with the Government’s commitment Meanwhile, the labour force grew by
to reprioritise expenditures, public 2.5% (2017: 1.9%), which amounted
consumption growth moderated to 372,875 persons entering the labour
to 3.3% (2017: 5.4%). Gross fixed force. The labour force participation
capital formation (GFCF) expanded rate also rose to 68.4% (2017: 68.0%).
at a slower pace of 1.4% (2017:
6.2%) due to a contraction in
public investment and the slower
expansion in private investment.
Public investment declined by 5.2%
(2017: 0.1%) following lower spending
by public corporations. Private
investment grew at a slower pace of
4.5% (2017: 9.3%) amid heightened
uncertainty stemming from both
external and domestic developments.
However, firms, particularly in the
export-oriented sectors, continued
to increase production capacity and
improve efficiency to meet demand.
On the supply side, most economic
sectors recorded an expansion, with
the exception of commodity-related
sectors. The services sector’s growth As a result, the unemployment rate
improved to 6.8% (2017: 6.2%), remained unchanged at 3.4%. Net
the highest since 2011, as better employment gains were driven mainly
consumer sentiments and favourable by high- and mid-skilled workers, which
labour market conditions spurred grew by 1.6% and 4.2% respectively.
spending, in particular during the tax Reported retrenchments continued on
holiday period. The manufacturing its decreasing trend (23,168 persons;
sector expanded by 5.0% (2017: 2017: 35,097 persons), below the
6.0%) supported primarily by a long-run average of 29,628 persons
continued expansion in the electrical per annum. Aggregate nominal wages
158
anchor growth, supported mainly by construction sector recorded a
private sector expenditure. Private moderate growth of 4.2% (2017: 6.7%)
consumption growth, in particular, due to weaknesses in the property
recorded the fastest rate since 2012 at segment. Growth in the mining sector,
8.1% (2017: 7.0%). Favourable wage however, contracted by 1.5% (2017:
and employment growth continued 1.0%) due to the decline in natural gas
to drive household spending with production, while adverse weather and
additional support from the three- production constraints that affected
month tax holiday (1 June – 31 August) palm oil and rubber production led to
following the zerorisation of the Goods a decline in growth in the agriculture
and Services Tax (GST) rate, as well sector (2018: -0.4%, 2017: 7.2%).
6 | MALAYSIAN ECONOMY as other Government measures such
as the fixing of the retail fuel price of In the labour market, employment
RON95 petrol and special payments growth was strong at 2.5% (2017:
to civil servants and pensioners. 2.0%), amounting to an additional
employment gain of 360,250 persons.
In line with the Government’s commitment Meanwhile, the labour force grew by
to reprioritise expenditures, public 2.5% (2017: 1.9%), which amounted
consumption growth moderated to 372,875 persons entering the labour
to 3.3% (2017: 5.4%). Gross fixed force. The labour force participation
capital formation (GFCF) expanded rate also rose to 68.4% (2017: 68.0%).
at a slower pace of 1.4% (2017:
6.2%) due to a contraction in
public investment and the slower
expansion in private investment.
Public investment declined by 5.2%
(2017: 0.1%) following lower spending
by public corporations. Private
investment grew at a slower pace of
4.5% (2017: 9.3%) amid heightened
uncertainty stemming from both
external and domestic developments.
However, firms, particularly in the
export-oriented sectors, continued
to increase production capacity and
improve efficiency to meet demand.
On the supply side, most economic
sectors recorded an expansion, with
the exception of commodity-related
sectors. The services sector’s growth As a result, the unemployment rate
improved to 6.8% (2017: 6.2%), remained unchanged at 3.4%. Net
the highest since 2011, as better employment gains were driven mainly
consumer sentiments and favourable by high- and mid-skilled workers, which
labour market conditions spurred grew by 1.6% and 4.2% respectively.
spending, in particular during the tax Reported retrenchments continued on
holiday period. The manufacturing its decreasing trend (23,168 persons;
sector expanded by 5.0% (2017: 2017: 35,097 persons), below the
6.0%) supported primarily by a long-run average of 29,628 persons
continued expansion in the electrical per annum. Aggregate nominal wages
158
