Bank Negara: 4Q GDP contracted 3.4% mainly due to CMCO

However, Bank Negara was upbeat on the prospects for 2021 and it expects the economy to recover supported by better external demand and the 2021 Budget measures.

KUALA LUMPUR: The Malaysian economy contracted by 3.4% in the fourth quarter compared with a contraction of 2.6% in the third quarter mainly due to the restrictions imposed to curb the spread of the Covid-19 pandemic.

Bank Negara said the contraction in the 4Q GDP was mainly due to the imposition of the Conditional Movement Control Order (CMCO) in a number of states since mid-October.