KUALA LUMPUR: Advance estimates for Malaysia’s gross domestic product (GDP) suggest the economy expanded by 5.8 per cent in the second quarter (2Q) of 2024, fostering optimism about the nation’s economic strength, according to Professor Ozer Karagedikli.

Karagedikli, professor of practice and director of the Central Banking Research Centre at Asia School of Business (ASB), noted that Malaysia’s economic potential is substantial and this growth rate appears achievable.

Nevertheless, he cautioned that the situation is complex.

“It is not simple. My assessment is that Malaysia’s trend growth rate is likely in the range of 4.0 and 5.5 per cent, which is a wide range in itself.

“Achieving consistent growth rates close to 6.0 per cent year after year is possible but might prove challenging without significant reforms to enhance the economy’s productivity and competitiveness,” he said in a statement.

He also pointed out that global economic uncertainties might pose risks to Malaysia’s economic outlook.

“The latest GDP figure offers much for financial sector economists to discuss.

“However, for policymakers and the broader public, the real challenge lies in sustaining such growth rates over time. That is something we all hope for,” Karagedikli added.

On July 19, the Department of Statistics Malaysia reported an estimated 5.8 per cent expansion in 2Q 2024, up from 4.2 per cent in the previous quarter and the highest growth since 7.4 per cent in 4Q 2022.

Bank Negara Malaysia is set to release the official 2Q 2024 GDP data on Friday.

Originally published by Bernama.