KUALA LUMPUR: Malaysia’s economy posted a sterling growth of 8.9 per cent in the second quarter (Q2) of 2022 as domestic demand continued to strengthen, underpinned by the steady recovery in labor market conditions and ongoing policy support.

In a statement today, Bank Negara Malaysia (BNM) said the higher growth was also reflective of normalizing economic activity as the country moved towards endemicity and reopened international borders.

“Exports remain supported by strong demand for electrical and electronics (E&E) products. By sector, the services and manufacturing sectors continued to drive growth,” it said.

While the gross domestic product (GDP) was lifted to some extent by the low base from the Full Movement Control Order (FMCO) in June 2021, the central bank said growth in April and May 2022 was particularly robust.

On a quarter-on-quarter seasonally-adjusted basis, it said the economy increased by 3.5 per cent as compared to 3.8 per cent in Q1 2022.