Malaysia’s Q2 2023 GDP growth stood at 2.9%, below the expected 3.3% and a decline from Q1’s 2023 5.6%. That was the weakest growth since the 4.2% contraction in Q3 2021. The deceleration was attributed to slower external demand, with exports falling 9.4%. Conversely, fixed investment improved to 5.5% from 4.9%, and government spending rebounded to 3.8%. The 2023 GDP projection is around 4.0%-5.0%, mainly driven by robust domestic demand.