KUALA LUMPUR, July 10 — Resilient domestic demand coupled with the recovery in exports will likely lift Malaysia’s real gross domestic product (GDP) growth to 5.4 per cent year-on-year in the second quarter, after surging 6.2 per cent in the first quarter, says RHB Research Institute.

The Statistics Department earlier today revealed that the Industrial Production Index (IPI) increased by 6.0 per cent in May from the same month last year. nger

RHB Research said in its “Economic Highlights” today that the stro growth in industrial activities in May suggests economic activities remained resilient, on account of a strong improvement in exports amid sustained recovery in the developed economies, aided by sustained increase in domestic demand.

The increase in industrial production was reflected in a pick-up in manufacturing and electricity output, but was offset partially by a slowdown in production from the mining sector.

“Although domestic demand will likely moderate in the second half, dampened by slowing government spending due to fiscal consolidation drive and curbs on the property market, it will likely remain resilient and act as the main anchor of growth during the year.

“We expect consumer spending to hold up and private investment to remain relatively strong in the second half amid elevated price pressure,” it added. — Bernama