Malaysian economy shrinks most in over 20yrs

Malaysian economy shrinks most in over 20yrs

Malaysia’s economy suffered its worst contraction in more than 20 years during the second quarter, hit by a collapse in global trade and tough curbs to contain the coronavirus, the central bank said Friday.

The economy shrank 17.1 percent on-year in April-June — the first since the global financial crisis in 2009 and the deepest since the Asian financial turmoil 11 years before that — putting it on course for recession.

The reading was much worse than the 10.9 percent drop forecast in a survey by Bloomberg News, despite interest rates being cut to record lows.

It shrank 16.5 percent on-quarter.Wan Suhaimi Saidi, an economist at Kenanga Investment Bank, warned that the trade-dependent economy was  “heading into a recession since there is no sign of a full recovery in demand and business activity”.

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