Malaysia’s economic growth is forecast to fall to 2.5 percent in 2020 due to its dropping exports caused by the COVID-19 outbreak.
A corner of Kuala Lumpur capital city (Photo: Straits Times)
According to data from the Malaysian Department of Statistics, the country’s export value in January decreased by 1.5 percent compared to the same period last year.
Kenanga Investment Bank Research predicted that Malaysia’s export in the first six months will be declined. Meanwhile, an economist from Hong Leong Bank said that falling exports would drag economic growth in the first quarter of 2020 to under 3 percent.
MIDFAmanah Investment Bank BhdResearch reported that foreign investors reduced their net investment in Malaysian equities by 1.19 billion RM (283 million USD) last week.
The MIDF’s research cited the country’s stock exchange data, saying that this was the third consecutive week international funds has cut capital in the market.
According to the latest report of the Asian Development Bank (ADB), Malaysia's economy could suffer a loss of 3.5 billion RM (831 million USD), or 0.23 percent of its GDP. If the situation is more serious, the Malaysian economy could lose up to 6.3 billion RM (1.52 billion USD)./.