On the expenditure side, private consumption grew by 7.8 percent year-on-year, following a 6.7 percent increase in the third quarter supported by stable labor market conditions and continued wage growth. In contrast, public consumption growth slowed to 2.7 percent, from a 5.3 percent in the third quarter, due to slower growth in both emoluments and supplies and services.
Private investment grew by 11.2 percent, after registering a 6.8 percent expansion in the third quarter, mainly due to an increase in spending in the manufacturing and service sectors. In contrast, public investment declined by 2.1 percent, following a 8.9 percent drop in the previous quarter, due to a contraction in spending on fixed assets by the Federal Government.
Export rose by 1.5 percent, slowing from 2.8 percent growth in the preceding quarter, due to contraction in sales of services. Imports increased by 2.6 percent from a 2.2 percent rise in July to September, due to better demand, particularly for goods.
On the production side, the manufacturing sector growth slowed to 5.2 percent year-on-year, from a 5.4 percent in the third quarter, as export-oriented industries slowed. The services sector advanced by 6.4 percent, up from 6.1 percent growth in the previous quarter as all sub-sectors reported expansion (wholesale and retail trade, communication and business service). The construction sector remained strong, driven by non-residential and residential sub-sectors. The agriculture sector fell 2.8 percent after registering a 4 percent expansion in the third quarter, due to a lower palm oil production caused by the flood in the eastern state of Peninsular Malaysia. The mining sector expanded 9.6 percent, rebounding from a 1.4 percent contraction in the previous quarter.
Moving forward, Malaysia's GDP is expected to remain on a steady growth path. Domestic demand is expected to remain favorable while investment is projected to remain resilient with broad-based capital spending by both the private and public sectors cushioning the lower oil and gas-related investment activity.
On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 2.0 percent, accelerating from a 0.9 percent expansion in the previous three months.
For full year of 2014, the Malaysian economy grew by 6 percent, as compared to a 4.7 percent expansion in 2013.