High GDP Growth Reflects Malaysian Government's Move to Embark On Digital Economy

By Zarul Effendi Razali and Azlee Nor Mahmud KUALA LUMPUR, Nov 17 (Bernama) -- The highest gross domestic product (GDP) growth recorded in three years in the third quarter (Q3) of this year mainly reflected the government's move to embark on the digital economy, says an analyst. Affin Hwang Investment Bank Vice-President and Head of Retail Research, Dr Nazri Khan Adam Khan, said the digital economy, namely e-commerce and online shopping, among others, had been among the main catalysts to significantly contribute to consumer spending. "In my opinion, the decision to embark on the digital economy has proven to be the best decision made by the government, which has been translated into the robust economy growth so far. “As we can see, the e-commerce and online shopping have been doing well,” he told Bernama. Bank Negara Malaysia (Malaysia’s Central Bank) on Friday announced that the GDP for Q3 grew by 6.2 per cent, the highest growth since the second quarter of 2014’s 6.5 per cent (picture). Nazri said the positive sentiment could also be a turning point for the government to cut its household debt moving forward. Meanwhile, Sunway University Business School Economics Professor, Dr Yeah Kim Leng, told Bernama the strong GDP growth for Q3 was in line with estimations, given that most indicators on industrial output, manufacturing sales, services and exports were showing sustained or better performance than the second quarter. "Malaysia's sterling and expectations-beating Q3 performance are reflective of strong and sustained external demand and most importantly, spillovers to domestic consumption and investment,” he said. Yeah said the sustained growth performance amid a positive global economic environment would provide firms and households with a two to three-year window of opportunity to strengthen balance sheets and build resilience against future shocks and economic uncertainties. (photoBERNAMA) -- BERNAMA