Malaysia Q1 GDP up 5.6% on GST front-loading

Kuala Lumpur

THE Malaysian economy was powered to a 5.6 per cent expansion in the first three months of the year by the rush to buy big-ticket items ahead of the new consumption tax in April, and by spending on relief programmes for the flood-hit east coast states.

Growth was only marginally slower than the 5.7 per cent recorded for the fourth quarter of last year. In a statement on Friday, Bank Negara said that the economy was expected to remain on a "steady growth path", and that amid lower oil prices, it anticipated domestic demand to continue to drive output.

First-quarter output was in line with the average forecast of 20 economists polled by New Stra…