Real GDP Growth Is Estimated to Contract by 10.5% Yoy in 2Q20

Malaysia’s industrial production index (IPI) declined for the third consecutive month, contracting by 22.1% yoy in May, albeit at a slower pace compared to -32% in April. Manufacturing output contracted sharply by 23.2% yoy in May (-37.2% in April), in tandem with the decline in exports of manufactured goods, which contracted by 23.5% yoy in May (-23.4% in April). Electricity output also declined by 10.3% yoy in May compared to a decline of 19.3% in April. On a month-on-month basis, growth in IPI recovered by 18.2% mom in May, a sharp turnaround from -30.5% in April, reflecting the gradual reopening of various sectors of the economy under the Conditional Movement Control Order (CMCO), which started from 4 May until 9 June 2020. Both manufacturing and electricity also recovered on a mom basis in May. However, growth in mining output declined further by 22.2% yoy in May from -19.6% in April

Source: Affin Hwang Research - 10 Jul 2020