Malaysian economy could shrink more than earlier forecasts, says finance minister
04 May, 2020
Malaysia's economy in 2020 could shrink a lot more than initially forecast because of extended curbs on movement imposed to stem an outbreak of the new coronavirus, the finance minister said on Saturday (May 2).
Malaysia's central bank had forecast in April for growth in gross domestic product (GDP) of between -2 % and 0.5 per cent this year.
"But that forecast was made after just fourteen days of movement curbs. We're now more than five weeks in ... so our GDP could shrink a lot more," Finance Minister Tengku Zafrul Tengku Abdul Aziz said within an interview with an area television channel.
Malaysia, which includes announced a stimulus package worth 250 billion ringgit (US$5.8 billion) to greatly help cushion the economic blow from the outbreak, will also announce an monetary recovery plan later this month, the minister said.
Malaysian authorities on Saturday defended plans to ease coronavirus lockdown measures in a few days even as the quantity of new infections jumped to a two-week high.
Most businesses will reopen on Monday, although schools, cinemas and nightclubs will stay closed, combined with the country's borders. Mass gatherings will still be banned.
Security minister Ismail Sabri said Malaysia had not been being hasty in relaxing the curbs, stressing that businesses reopening will need to implement hygiene and social distancing measures.
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