Malaysia Economic Outlook
August 25, 2020The economy nosedived in the second quarter, recording the worst contraction on record and performing last among its regional peers. A strict lockdown decimated the domestic economy, causing both fixed investment and private consumption to fall at a record pace. Turning to Q3, the manufacturing PMI fell slightly in July, but still remained well above the readings at the height of the lockdown, suggesting that a recovery is under way. Moreover, the reopening of the border with Singapore in August bodes well for tourism and cash flows, as many Malaysians commute to work in Singapore. On 18 August, the government struck a USD 3.9 billion settlement deal with Goldman Sachs to resolve allegations linked to the 1MDB scandal. The deal will provide a much-needed, large cash payment to the government, and help ease its debt burden at a critical time as it tries to stoke an economic recovery.
Malaysia Economic GrowthThe economy is seen contracting at the sharpest pace since 1998 this year, hammered by containment measures due to the Covid-19 pandemic, and low oil prices. Risks to the outlook are tilted to the downside and include a slow recovery in key trading partners, a second round of lockdowns, volatile commodity prices and political turbulence—including snap elections. FocusEconomics panelists see the economy contracting 4.2% in 2020, which is down 0.8 percentage points from last month’s forecast, before rebounding and growing 5.8% in 2021.
Malaysia Economy Data
5 years of Malaysia economic forecasts for more than 30 economic indicators.
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|Bond Yield||3.32||0.15 %||Dec 31|
|Exchange Rate||4.09||0.0 %||Jan 01|
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Malaysia Economic News
September 11, 2020
Industrial output rose 1.2% year-on-year in July, swinging from June’s 0.4% drop and marking the first positive reading since February.
September 10, 2020
At its 10 September meeting, the Monetary Policy Committee of Bank Negara Malaysia (BNM) decided to maintain the overnight policy rate at its all-time low of 1.75%, amid divided market analysts’ expectations.
September 4, 2020
Merchandise exports fell 0.6% in annual and USD terms in July, contrasting June’s 5.3% increase.
September 3, 2020
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, receded to 49.3 in August, from 50.0 in July.
August 18, 2020
Consumer prices increased a seasonally-adjusted 0.67% from the previous month in July, softening from June's 1.02% increase.