StanChart Global Research cuts Malaysia GDP growth to 2.5%

“We therefore see a more prolonged hit to both local and external demand in Malaysia even as supply chain disruptions in China normalise, ” StanChart Global Research said.

KUALA LUMPUR: Standard Chartered Global Research has reduced Malaysia’s economic growth forecast for this year to 2.5% from 4.2% to reflect a greater hit to local and external demand from a more protracted outbreak from Covid-19.

The research house said its previous projections were based on a sharp – but brief – supply-chain disruption due to China’s restrictive coronavirus containment measures and the resulting temporary impact on local and external demand; for example, through reduced tourism.