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Malaysian Economy Expands 5.6% in First Quarter KUALA LUMPUR: Malaysia's economy expanded by 5.6% in the first quarter ended March 31, 2015, supported by strong

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Malaysian Economy Expands 5.6% in First Quarter KUALA LUMPUR: Malaysia's economy expanded by 5.6% in the first quarter ended March 31, 2015, supported by strong private consumption and private investment. Bank Negara Malaysia (BNM) announced on Friday that the GDP growth, on a quarter basis grew at 1.2%. GDP at current prices amounted to RM277.2 billion in this quarter. At constant prices in 2010, GDP registered a value of RM254.4 billion. The firm GDP growth, which was above economists' expectations of a 5.5% growth, was driven by an 8.8% growth in private consumption and the 11.7% increase in private investment. Private investment was driven by capital spending in the export oriented manufacturing ndustries and the services sector together with on-going multi-year investment projects. BNM said the current account surplus improved in the quarter to 3.7% or RM10billion of gross national income. However, gross exports declined due to higher exports in the previous corresponding quarter. Meanwhile, the Statistics Department said the services sector recorded a steady growth of 6.4%. The growth was mainly led by wholesale and retail trade headed by retail (10.7%) and wholesale (9.6%). The manufacturing sector rose to 5.6% from 5.4% in the previous quarter. The growth was driven by electrical, electronic and optical products (9.3%) due to the production of domestic oriented industries such as consumer electronics and communication equipment. Mining and quarrying sector posted a strong growth of 9.6%. The growth was primarily effected by a double digit increase in the production of crude oil. On the contrary. production of natural gas declined in this quarter. Adapted from The Star online, May 15, 2015 Define Gross Domestic Product (GDP). Briefly explain three (3) approaches to calculate GDP. (8 marks) From the above article, briefly explain three (3) economic sectors which contribute to our economic growth. (6 marks)

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