Malaysia Economic Outlook
February 25, 2020Economic growth slumped to an over one-decade low in the fourth quarter as the U.S.-China trade war and anemic tech demand battered Malaysia’s external sector, which shaved nearly one percentage point off GDP growth. Robust household spending, however, somewhat cushioned the deceleration in Q4. Available data for the first quarter paints an equally grim picture. The manufacturing PMI returned to negative territory in January. Despite thawing trade tensions and signs that the downturn in the tech sector has bottomed out, the recent outbreak of the coronavirus is hampering Chinese activity and has already ricocheted through supply chains and commodity markets. Given Malaysia’s exposure to China, the expected recovery in the external sector could be delayed further into 2020. In politics, on 24 February Prime Minister Mahathir bin Mohamad resigned and dissolved the cabinet amid political turmoil among his coalition. He will remain on as the interim leader until elections.
Malaysia Economic GrowthThe economy will likely lose further steam this year as a still-frail external sector hinders employment and wages and, in turn, household spending. While exports and fixed investment are seen rebounding, albeit modestly, a stronger-than-expected slowdown in China—amid U.S.-China tensions and the coronavirus—is the main risk to the outlook. FocusEconomics panelists see the economy growing 4.1% in 2020, which is down 0.3 percentage points from last month’s forecast, and 4.6% in 2021.
Malaysia Economy Data
bet360备用网址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
March 4, 2020
Merchandise exports fell 0.8% year-on-year in USD terms in January, contrasting December’s 3.9% increase (previously reported: +4.0% year-on-year).
March 3, 2020
bet360备用网址The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, edged down to 48.5 in February from 48.8 in January.
March 3, 2020
At its 2–3 March meeting, the Monetary Policy Committee of Bank Negara Malaysia (BNM) voted to lower the overnight policy rate (OPR) by 25 basis points to 2.50% while the ceiling and floor of the OPR corridor were reduced to 2.75% and 2.25%, respectively.
February 21, 2020
Consumer prices increased 0.1% over the prior month in January, down from December’s 0.2% rise.
February 12, 2020
The economy lost considerable traction in the final quarter of 2019.