Weak global demand for Malaysian goods has slowed down the country's year-on-year growth to 4.3 percent in the second quarter.
The growth announced by Bank Negara fell short of analysts’ forecasts, and was down from 5.4 percent growth in the second quarter of 2012. The central bank, which previously set a forecast of 5-6 percent, has revised its growth projection for the year to 4.5-5.0 percent.
“While domestic demand is expected to remain firm, the weak external sector in the first half of this year will affect our overall growth performance for the year,” the central bank said in a statement.
In the fourth quarter of 2012, Malaysia's economy expanded by a surprising 6.4 percent, its best showing in more than two years.