Yes, this has been officially announced, so it’s not a forecast or an estimate. GDP for Malaysia in Q1 2020 is a GROWTH. It’s a positive 0.7% for Q1 2020 GDP growth. We could see from the chart provided by Bank Negara Malaysia (BNM) showing that the consumption from the private sector was positive but many businesses have now stopped investing in an uncertain market. This is the same for most people and with everyone staying at home, the spending has gone down tremendously too. Asa trading nation, inability to export meant that this is also a negative number because most countries are under full or partial lockdown.
BNM also said that the economic stimulus measures implemented by the Government will
provide sizeable assistance to households and businesses. BNM has also helped via the reductions in the OPR and SRR, deferment of loan and financing repayments for a period of six
months for individual and SME borrowers, daily market operations to ensure ample liquidity, and enhancements to existing financing facilities under BNM’s Fund for SMEs.
The Malaysian economy is expected to gradually pick up in 2H 2020. However it is expected that the Malaysian economy will contract in Q2 2020. The sizable fiscal, monetary and financial measures and progress in transport-related public infrastructure projects will provide further support to growth in 2H 2020. In line with the projected improvement in global growth,
the Malaysian economy is expected to register a positive recovery in 2021.
Hopefully all will be well. As for now, please stay safe and continue to apply social distancing.
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