How will Malaysia’s growth decline compare with ASEAN peers?

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Malaysia Faces Economic Downturn Amidst Regional Challenges

Malaysia's economic growth is projected to decline significantly, positioning it among the laggards within the ASEAN region. While specific comparative figures for all ASEAN peers are not detailed, economists and Bank Negara Malaysia (BNM) have forecast a notable contraction for the Malaysian economy in the current year. Several bank economists anticipate a steeper plunge, estimating the country's growth to fall by around 3.5 per cent. This outlook aligns with BNM's own forecast range, which predicted a decline between -2.0 per cent and 0.5 per cent, with the specific expectation of a 1.7 per cent contraction.
Projected Economic Contraction for Malaysia

The International Monetary Fund (IMF) has revised its global growth forecast downwards, projecting a -3.0 per cent growth for the world in 2020. Within this global context, Malaysia is identified as one of the countries expected to experience a decline in economic output. The initial projection from BNM indicated a contraction of 1.7 per cent, a figure that places Malaysia's anticipated performance on the lower end of regional economic expectations. However, some economists have presented a more pessimistic view, suggesting the possibility of a more severe contraction, potentially reaching 3.5 per cent.
General Economic Conditions in Emerging and Developing Asia

While the provided text does not offer a country-by-country breakdown of ASEAN economic forecasts, it does provide a broader projection for the "Emerging and Developing Asia" region. This category is expected to see a modest growth of 1.0 per cent. This figure serves as a general benchmark for the broader Asian economic landscape, within which Malaysia's projected decline is positioned. The contrast between the regional growth and Malaysia's expected contraction highlights the specific challenges the nation is facing.
Global Economic Rebound Expected in 2021

Despite the significant downturn anticipated for 2020, there is an expectation of a global economic rebound in the following year. Malaysia is also forecast to experience a substantial expansion in 2021, with projections suggesting a growth of 9.0 per cent. This anticipated recovery is even higher than some external ratings agencies, such as Fitch Ratings, which had projected a 5.8 per cent expansion. This forward-looking optimism is contingent on the gradual disappearance of the global pandemic by the second half of 2020, a scenario that underpins the IMF's baseline projections.

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How will Malaysia’s growth decline compare with ASEAN peers?

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