Juwai IQI chief economist Shan Saeed said the country’s GDP could even grow as high as 6.5% to 7% this year, based on the 8.9% jump it achieved in the three months from April to June.

Shan had previously projected a 4% to 5% growth for the year, and above 5% for Q2.

At a briefing to the media this morning, Bank Negara Malaysia (BNM) had attributed the “particularly robust” growth in April and May to strengthened domestic demand, the steady recovery in the labour market conditions and policy support.

“(The Q2 growth) has beaten market expectations and it has surprised the market,” Shan told Bernama.

“Based on the premise that consumption patterns will remain strong, that is, domestic demand and investment continue to go up, as well as the value of trade and commerce numbers increases, at Juwai IQI we believe Malaysia’s economy will record solid growth in 2022,” he said.

Shan also noted that the real estate sector in the region has continued to be steady.

“People are still buying property despite volatility in the global market and more importantly the Malaysian government has maintained a policy framework that gives confidence to both local and international investors,” he added.

Meanwhile, BNM has maintained its GDP growth forecast of 5.3% to 6.3% for the year, with growth seen at the upper level of the forecast, according to governor Nor Shamsiah Mohd Yunus.

With the robust growth of 6.9% recorded in the first half of 2022, the economy is projected to expand further for the remainder of the year.