Malaysia's economy grew 5.4 percent last year, slightly above the economy's potential rate of about five percent, says Moody's Analytics.

The research house said the country's economy remained resilient through the fourth quarter and grew 5.6 percent from the third quarter's 5.2 percent.

"Higher government spending on infrastructures has helped support an investment boom," a division of Moody's Corp, engaged in economic research and analysis, said in its Asia-Pacific Preview for this week.

Moody's Analytics also said cash handouts, bonuses for civil servants and an increase in the minimum wage have helped private consumption expand solidly.

Elsewhere, Thailand expanded 14 percent year-on-year in the December quarter amid a low base effect from the floods in late 2011, it added.

- Bernama