Malaysia Economic Outlook
October 19, 2021Activity likely took a hit in Q3, weighed on by strict Covid-19 curbs. Industrial output tumbled in July–August, while export growth eased significantly in the same period as restrictions hampered semiconductor production, weighing on shipments of electrical and electronic goods in turn. Moreover, nosediving retail sales in July–August point to waning consumer spending. However, a jump in the vaccination rate in recent months—with around 65% of the population fully vaccinated by mid-October—has prompted the gradual relaxation of curbs, boding well for activity in Q4. In other news, on 27 September, the prime minister unveiled the country’s 12th five-year spending plan, aiming to spend MYR 400 billion (around USD 95.5 billion) on existing schemes and MYR 260 billion on new projects, while promoting sustainable growth. Meanwhile, the government is set to table its 2022 budget on 29 October.
Malaysia Economic GrowthFollowing 2021’s projected rebound, the economy is set to grow at a sharper pace next year. A high vaccination rate should result in the gradual removal of restrictions, while the government’s new approach to treating Covid-19 as endemic is likely to safeguard activity from future pandemic-related disruptions. Moreover, normalizing semiconductor output will buoy exports. FocusEconomics panelists see the economy growing 5.7% in 2022, which is up 0.1 percentage points from last month’s forecast. In 2023, the panel sees the economy expanding 4.9%.
Malaysia Economy Data
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Malaysia Economic News
October 12, 2021
Industrial output dropped 0.7% year-on-year in August (July: -5.1% yoy), as tight Covid-19 restrictions continued to weigh on industrial activity.
October 4, 2021
Merchandise exports grew 17.1% year-on-year in USD terms in August, above July’s 6.5% increase.
Malaysia: Manufacturing PMI hits four-month high in September but remains entrenched in negative terrain
October 1, 2021
The manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit, rose to 48.1 in September from 43.4 in August logging the highest reading in four months.
September 24, 2021
Consumer prices were unchanged over the previous month in August, following the 0.57% drop seen in July.
September 10, 2021
Industrial output tumbled 5.2% year-on-year in July (June: +1.4% yoy), marking the worst reading since May 2020.