Malaysia’s economic expansion beat estimates as private consumption growth quickened, helping counter weak government spending. Key Points * Gross domestic product rose 4.3 percent last quarter from a year earlier, after climbing 4 percent in the previous three months, Bank Negara Malaysia said in Kuala Lumpur Friday. * The median estimate of 19 economists surveyed by Bloomberg News was 4 percent. * GDP expanded 1.5 percent from the previous three months Big Picture Malaysia’s consumers and companies are now the growth pillars of the economy after a collapse in global crude prices hurt exports and curtailed the government’s ability to spend. Donald Trump’s victory in the U.S. presidential election poses a risk to Asian economies should he follow through with imposing trade barriers. Prime Minister Najib Razak has allocated more funds for the poor and promised civil servants a bonus to support domestic consumption. The central bank delivered a surprise 25 basis-point cut in the benchmark overnight policy rate in July and lowered the amount of cash that banks must set aside as reserves earlier this year. Economist Takeaways * “Weak export sales could likely be the main drag,” Irvin Seah, a senior economist at DBS Group Holdings Ltd. in Singapore, wrote in a Nov. 10 report. “Amid the challenging external environment, domestic demand will likely remain the key driver of growth.” * Malaysia’s central bank has space for two more rate cuts until the end of 2017, Wellian Wiranto, an economist at Oversea-Chinese Banking Corp. in Singapore, said before the announcement. He forecast a rate cut when policy makers meet later this month, adding that potential fluctuations in the ringgit would be among reasons affecting the decision. Other Details *The central bank said Friday that while growth is “currently relatively subdued,” it’s projected to pick up as policy measures gain traction and global prospects improve *The central bank also said that ringgit volatility will persist mainly due to external uncertainties including oil, China’s economic outlook and Brexit. *Governor Muhammad Ibrahim said the ringgit will continue to be market-determined and the central bank’s role is to continue to manage extreme volatilities in the ringgit with no targeted level or predetermined path. * Private consumption expenditure climbed 6.4 percent last quarter from a year ago, compared with 6.3 percent in the previous three months. * Overall public sector spending rose 0.3 percent in the period, easing from 6.9 percent previously. * Exports fell 1.3 percent in the third quarter from a year earlier.