Bank Negara: Economic and Monetary Review 2019 highlights


Main points of Bank Negara's Economic and Monetary Review 2019:

* Malaysia’s GDP growth to be between -2% and 0.5% in 2020 (2019: 4.3%).

* Headline inflation to average -1.5% to 0.5% in 2020 (2019: 0.7%) due to significantly lower global oil and commodity prices.

* Domestic economy impacted but necessary global and domestic actions taken to contain Covid-19 outbreak.

* Broad-based restrictions and aversion to travel activities will have a sizeable impact on Malaysia’s tourism sector. Tourism accounts for 11.8% of GDP.

* Production disruptions in global supply chain weigh on the manufacturing sector and exports.

* Private consumption hit by weak labour market conditions, mobility restrictions, subdued sentiments.

* Unfavourable weather conditions and maintenance works will weigh on the production of oil palm, crude oil and natural gas.

* However, domestic growth prospects to improve towards end 2020. Underpinning optimism are projected recovery in global demand and amid continued support from global policy measures.

* Apart from Covid-19 health crisis, economy to be affected by sharp decline and volatile shifts in crude oil prices.

* Crude palm oil (CPO) price relatively sustained, as weaker external demand offset by decline in CPO production.

* Net exports of goods and services to contract due mainly to larger decline in exports.

* Gross merchandise exports to register a larger negative growth. Main factors are weaker global demand conditions due to global pandemic.

* Commodities exports to contract further due mainly to lower prices of crude oil and LNG, weaker commodities output.

* Consumption imports to decline amid slower domestic demand conditions.

* Current account surplus to narrow to 1% to 2.0% of GDP in 2020 (2019: 3.3% of GDP).

* Towards end 2020, economy to benefit from the projected improvement in global demand and as risks from the pandemic subside.

* Domestic growth prospects to improve towards end-2020 and subsequently in 2021.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

GDP , Bank Negara , tourism , manufacturing , disruption


Next In Business News

Moody’s: Sustainable bonds issuance to top US$850bil
Public Mutual declares gross distributions of RM235m for 13 funds
Central banks go big on gold buying
Earnings bounce, bond-yield drop help keep party going for US stocks
Bitcoin rallies past key $40,000
PBOC: China will maintain prudent, flexible monetary policy
Bank Rakyat launches entrepreneur programme
CPO futures seen trading with upward bias next week
As scrutiny mounts, crypto exchange Binance to wind down derivatives in Europe
Oil price climbs, notches fourth monthly gain on growing demand

Stories You'll Enjoy