AEIR 2021

The economy grew by 4.3% in 2019, its slowest in a decade, down from 4.7% in 2018. Despite decelerating slightly, growth in private consumption remained robust at 7.6%, offsetting sluggish growth in exports and domestic investment. Inflation remained muted at 0.7% even with strong consumption and some monetary policy easing—the central bank cut its policy rate from 3.25% to 3.00% in May. Export earnings declined by 4.3% due to weaker global growth, the trade tensions between the United States and the People’s Republic of China, and lower commodity prices. With the COVID-19 outbreak disrupting supply chains and travel, exports of goods and services are expected to continue to contract. GDP growth is thus expected to drop to 0.5% in 2020 before recovering to 5.5% in 2021.

Source: Asian Development Outlook 2020, ADB
Latest Month-Ago Year-Ago
Composite Stock Price Index 1 1.0 (Jan21)1.0 1.0
Broad Money Growth 2 4.1 (Dec20)4.1 5.2
Headline Inflation Rate 3 -1.4 (Dec20)-1.7 1.0
Industrial/ Manufacturing Production Growth Rate 3 -2.2 (Nov20)-0.5 2.1
Merchandise Export Growth 3 13.3 (Dec20)13.3 5.7
Exchange Rate Index 4 107.6 (Jan21)108.1 108.7
1 Monthly average, local index.
2 %.
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
Source: Bloomberg LP; CEIC database; Department of Statistics of Malaysia.

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