Kuala lumpur: Malaysia is not exhibiting signs of a two-speed economy as its growth remains broad-based, despite global trade tensions and geopolitical uncertainties. The country's economic expansion is supported by contributions from the manufacturing, services, and construction sectors.

According to BERNAMA News Agency, Hong Leong Investment Bank (HLIB) chief economist Felicia Ling emphasized that Malaysia's economic growth is underpinned by diverse drivers that provide resilience against external uncertainties. In a virtual economic briefing organized by the Institute of Chartered Accountants in England and Wales (ICAEW) Malaysia, Ling highlighted that a two-speed economy is more apparent in countries like Korea, but not in Malaysia.

Ling explained that Malaysia's diversified growth profile helps to cushion the economy against external headwinds, with multiple sectors contributing to the expansion rather than relying on a single industry. She noted that the manufacturing sector is benefiting from the global artificial intelligence (AI) cycle, particularly through stronger semiconductor-related exports. Meanwhile, the services sector remains robust, driven by resilient domestic demand and consumption.

The services sector, which accounts for more than 50 percent of Malaysia's economic output, remains a key pillar of growth alongside manufacturing. Although construction activity is expected to moderate in the second half of the year, Ling attributed this to a high base effect following last year's strong expansion, rather than a decline in investment momentum.

Ling further mentioned that investments continue to flow into Malaysia, with ongoing implementation from both foreign and domestic sources. She noted the continued development of data centers and public projects, underscoring the sustained investment activity in the country.