Malaysia Economic Outlook
May 26, 2020The economy expanded at the slowest pace in over a decade in the first quarter, as the country reeled from the Covid-19 fallout. Sharp contractions in exports and fixed investment prompted the deceleration, amid lower Chinese demand and capital outflows. Only resilient household spending growth and a jump in government consumption spared the economy a downturn in Q1. Turning to the second quarter, GDP is set to shrink as lockdown measures hammer consumption, while bleaker economic conditions abroad weigh on trade and investment. A record drop in the manufacturing PMI in April provided a glimpse of the scale of deterioration, as companies cut output at an unprecedented rate amid plummeting demand. In politics, on 18 May, Prime Minister Muhyiddin Yassin managed to postpone a confidence vote until, most likely, July, averting a political crisis amid dwindling parliamentary support for his administration.
Malaysia Economic GrowthThe Covid-19 pandemic is set to push the economy into recession this year. Rising unemployment and containment measures will hammer private consumption, while the deteriorated sentiment should hinder fixed investment. Exports should shrink amid plummeting demand for oil and a drop in tourist arrivals. Political risks also cloud the outlook. FocusEconomics panelists see the economy contracting 2.6% in 2020, which is down 1.0 percentage points from last month’s forecast, before rebounding and growing 5.7% in 2021.
Malaysia Economy Data
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|Bond Yield||3.32||0.15 %||Dec 31|
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Malaysia Economic News
July 1, 2020
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, jumped to 51.0 in June from May’s 45.6, and marked the highest reading since September 2018.
June 24, 2020
Consumer prices rose a seasonally-adjusted 0.3% in May over the last month, rebounding from April's 2.7% drop.
June 11, 2020
Industrial output dropped 32.0% in year-on-year terms in April, which was a larger contraction than March's 4.9% decrease.
June 4, 2020
Merchandise exports plunged 27.8% in annual USD terms in April, down from March’s 8.9% fall and marking the sharpest drop since July 2009.
June 3, 2020
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, jumped to 45.6 in May from April’s 31.3, which had marked the lowest result in the history of the survey.