Malaysia's economy grew at 4.3% on-year in the second quarter ended June 30, 2013, which was at a faster pace from the first quarter's 4.1%, underpinned by the services sector and a rebound in the manufacturing sector.
Bank Negara Malaysia said for the first half, the gross domestic product (GDP) grew 4.2%. On a quarter-on-quarter seasonally adjusted basis, the economy recorded a growth of 1.4% (Q1, 2013: -0.4%).
"The overall growth of the economy for this year has now been revised to 4.5% to 5.0%," the central bank said on Wednesday.
BNM said the agriculture sector expanded by 0.4% in Q2, 2013, which was slower than the 6.0% in Q1, 2013; construction grew 9.9% (14.2%); manufacturing 3.3% (0.3%); mining 4.1% (-1.9%) and services 4.8% (5.9%).
However, the GDP expanded at a slower pace when compared with the second quarter of 2012 (Q2, 2012) where the GDP expanded 5.6%, powered by the 21.5% growth in construction.
BNM said domestic demand remained firm; growing by 7.3% (Q1, 2013: 8.2%), while exports registered a larger decline, amid weakness across most export products.
On the supply side, the major economic sectors expanded further in the second quarter, supported by the continued strength in domestic demand.
BNM said for Malaysia, the prolonged weakness in the external environment has affected the overall growth performance of the economy going forward.
"While domestic demand is expected to remain firm, supported by sustained private consumption, capital spending in the domestic-oriented industries and the ongoing implementation of infrastructure projects, the weak external sector in the first half of this year will affect our overall growth performance for the year," it said.
BNM expected going forward, domestic demand was expected to remain on its steady growth trajectory and will continue to be supported by an accommodative monetary policy.