Malaysia's GDP growth likely to have risen 5.4% y/y in Q1

Malaysia will release Q1 GDP data on 15 May (initially scheduled for 14 May). Q1 GDP growth of 5.4% y/y; this implies that growth slowed to 0.4% q/q on a seasonally adjusted basis from 2.0% in Q4-2014. 

Private consumption prior to GST implementation in April likely continued to drive growth. Private consumption is expected to ease in the coming quarters given front-loaded purchases. 

Investment, particularly in ongoing public infrastructure projects, was likely the other key growth driver. External demand, however, is weak, although the fall in imports likely boosted the net trade contribution to growth. 

Monthly indicators already released show that growth remained resilient. Industrial production increased 6.3% y/y on average in Q1, from 5.8% in Q4-2014, supported by resilient mining production, which rose 8.9% y/y on average.