Malaysia is likely to register a sharp drop in its economic growth in the fourth quarter of last year due to slower exports, said RHB Research Institute in a report on Tuesday.

RHB said that a moderation in industrial and manufacturing activities suggests that economic activities are likely to have weakened in the fourth quarter of last year with GDP growth softening to 4.8 percent from 5.8 percent in the third quarter.

The research house said that it expects Malaysia's economy to grow just 3.6 percent this year as compared with an estimated 5 percent for 2011.