KUALA LUMPUR: The Leading Indicator (LI) for March 2020 recorded its largest monthly drop since November 1991, following the imposition of a two-week Movement Control Order (MCO) beginning on March 18 to curb the spread of Covid-19.
The Department of Statistics Malaysia (DOSM) chief statistician Datuk Seri Dr Mohd Uzir Mahidin said based on the previous global economic crises, it found the expectation of LI for the next four to six months to reflects the forthcoming reality of the economic recession.
The department in its latest Malaysian Economic Indicators: Leading, Coincident & Lagging Indexes for March 2020 showed the LI declined further to negative 4.9 per cent in March 2020 from negative 0.8 per cent in the previous month.
The significant decrease were mainly attributed by Expected Sales Value in the Manufacturing sector (-1.7 per cent) and Number of New Companies Registered (-1.6 per cent).
Concurrently, the annual change of LI recorded negative 3.6 per cent in March 2020 as against 1.7 per cent in February 2020.
The sharp drop in the LI reflects the shutting down in non-essential business activities following the unprecedented restrictions in people's movement to curb the COVID-19 pandemic.
"Thus, it is expected that the Malaysian economy will be facing a sharp slowdown in the near future." - Bernama
Did you find this article insightful?
100% readers found this article insightful