KUALA LUMPUR, Feb. 14 (Xinhua) -- Malaysian central bank announced Friday that the country's economy grew 5.1 percent year-on-year in 2024, due to continued expansion in domestic demand and a rebound in exports.

Bank Negara Malaysia (BNM) said in a statement that on the domestic front, the growth was mainly driven by stronger household spending, reflecting favorable labor market conditions, policy measures to support households and healthy household balance sheets.

In addition, strong investment approvals and further progress of multi-year projects by the private and public sectors, which includes catalytic initiatives under national master plans, provided further impetus to investment growth.

On the external front, exports recovered amid steady global growth, continued tech upcycle as well as higher tourist arrivals and spending.

As for the fourth quarter of 2024, the Malaysian economy expanded by 5 percent year-on-year, driven mainly by domestic demand.

On a quarter-on-quarter, seasonally-adjusted basis, the growth declined by 1.1 percent as compared to a 1.9 percent increase in the third quarter of 2024.

"Going forward, while the global environment could be challenging, growth of the Malaysian economy will be driven by robust expansion in investment activity, resilient household spending and expansion in exports supported by Malaysia's strong economic fundamentals," BNM Governor Abdul Rasheed Ghaffour said.

On the domestic front, the BNM highlighted that investment activities will be driven by the favorable progress of multi-year projects in both the private and public sectors and further lifted by the realization of approved investments.

It noted that household spending will benefit from continued support from employment and wage growth as well as government policy measures. This includes the upward revision of the minimum wage and civil servant salaries.

On the external front, it said the ongoing global tech upcycle, continued growth in non-electrical and electronic goods and higher tourist spending are expected to lift exports.

As for the Malaysian ringgit, the BNM said external factors are expected to continue influencing the ringgit exchange rate.

Despite that, it opined that the country's positive macroeconomic prospects and the ongoing implementation of structural reforms will provide medium-term support for the ringgit.

It said the BNM remains committed to ensuring the orderly functioning of the domestic foreign exchange market. Enditem

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