RAM sees GDP shrinking 4% this year, worse than initial forecast


“We expect Malaysia’s medium- to long-term economic recovery plan, to be unveiled in October, to incorporate a reform agenda to push developments in technology, labour market reforms and the promotion of attractive investment ecosystems for sustainable growth," RAM RAtings said.

KUALA LUMPUR: RAM Ratings expects Malaysia's economy to contract by 4% this year, exceeding its initial projection of -2.4% as the country is set to experience one of its worst recessions this year.

The rating agency said on Thursday this was mainly due to greater-than-expected industrial and labour market slack - the result of the various stages of the movement control order (MCO) endured by businesses and households that have crushed demand.

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RAM Rating , GDP , shrink , MCO , capacity utilisation , exports

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