Malaysia’s second-quarter GDP growth came in at 8.9 percent, higher than global expectations of 8.4 percent and compared with 10.1 percent in the first quarter.

Exports have seen a significant recovery in recent quarters. And this steady export recovery will continue to support domestic investments.

On the domestic front, growth rates in private and government consumption, as well as private investment, all ticked up, with aggregate domestic demand growing by 9.0 percent in the second quarter (compared with 5.3 percent in the first quarter) .

Looking forward, the latest recovery in exports, which also drove their capacity-utilization rates in the manufacturing sector back to near pre-crisis highs, is an important catalyst in the initial stage of the recovery of Malaysia’s capital spending cycle, which is critical for long-term sustainable growth.