Malaysia's economy this year is poised to grow at a brisker pace than previously expected, said Alliance Research chief economist Manokaran Mottain in a report yesterday.
The economist also noted that to a certain extent, the positive wealth-effect from rallying Bursa Malaysia activities may have also contributed to rising domestic demand.
As such, he expects much of the second quarter growth to be domestic-driven, estimating domestic demand may have grown by 8.3 per cent year-on-year, faster than the 8.2 per cent in the first quarter, due to stronger private sector activities.
"Private consumption is expected to grow by 7.9 per cent in the quarter, backed by the salary increments for civil servants early in the year as well as the cash aid (BR1M-2) given to ease the people's financial burden," Manokaran said.
He added that private investment will likely expand by around 12 per cent in the quarter under review, alongside greater public investment.
"Public investment is expected to expand by 10 per cent in the second quarter versus 17.3 per cent year-on-year in the first quarter, driven by capital spending by public enterprises in the oil & gas, utilities and telecommunication sectors," Manokaran said.