Malaysia: Upside surprise in GDP – ANZ

ANZ analysts note that Malaysia’s Q2 economic activity produced a positive surprise for the second straight quarter.

Key Quotes

“We remain concerned about the underlying momentum.”

“Of particular note is the flat export performance, which alongside compressed public infrastructure spending, remains a drag on overall investment activity. Indeed, the stronger positive contribution to growth from net trade was due to a sharper contraction in imports rather than a recovery in exports.”

“Admittedly, private consumption held up better than expected despite headwinds faced by households.”

“Going forward, the revival of select infrastructure projects will provide some support to investment. Nonetheless, exports are key to a more significant upturn, the outlook for which remains clouded amid persistent trade tensions.”