Stronger than expected growth was attributed to stronger domestic demand, which helped offset the effects of lower crude oil and commodity prices on the economy. Meanwhile, rising private consumption, which rose 4.9% in the fourth quarter compared with 4.1% in the previous quarter, also boosted the Malaysian economy in the September-December period.
The central bank reportedly stated that the economy will face a challenging environment over the short term while domestic demand will continue to support economic growth. Some economists also said that low commodity prices will result in curtailing investment in the energy sector, keeping commodity export income weak and hurting fiscal revenue.