KUALA LUMPUR - Malaysia’s economy quickened by the most in a year, signalling that a firmer recovery is under way in the South-east Asian nation.

Gross domestic product rose 3.9 per cent in the January-March quarter from a year ago, according to advance estimates from Malaysia’s Department of Statistics on April 19. That is in line with the median estimate in a Bloomberg survey.

The nation’s services sector drove the economy, while the manufacturing sector rebounded 1.9 per cent in the quarter following a contraction in the previous three months, the statistics department said.

Trade surplus rose to RM12.8 billion (S$3.6 billion) in March, the government said in a separate statement, exceeding analysts’ forecast.

“One positive feature is that manufacturing is turning up,” said Mr Sanjay Mathur, an economist with Australia and New Zealand Banking Group. “The March trade surplus suggests that the drag from ‘net exports’ on overall growth is fading.”

The growth print suggests Malaysia’s economy is regaining momentum after moderating in 2023 on tepid global demand.

The trade-reliant nation is poised to benefit should China – Malaysia’s largest trade partner – continue to build on its surprise strong start.

Bank Negara Malaysia expects gross domestic product to expand between 4 per cent and 5 per cent in 2024 on improving external demand.

Malaysia’s exports extended declines for a second month in March after a pickup in January, though the decline was not as sharp as analysts had expected. Shipments of goods abroad fell 0.8 per cent from a year earlier in March, according to the Ministry of International Trade and Industry.

Exports had fallen for 10 straight months through December, the worst streak since the global financial crisis of 2008-2009.

The ringgit held a 0.1 per cent gain versus the US dollar as at 12.21pm in Kuala Lumpur following the economic numbers. The local benchmark stock index was up for a third day. BLOOMBERG