Malaysia: GDP not as bad as feared – Standard Chartered

Malaysia’s Q1 GDP came in better than expected, but growth is still the worst since the GFC period, as economists at Standard Chartered note. USD/MYR is trading at 4.3255.

Key quotes

“Malaysia’s Q1 GDP grew 0.7% y/y, better than consensus expectations of a contraction, but the weakest since Q3-2009 on a y/y basis.”

“We raise our 2020 GDP growth forecast to -2.6% from -6.1%. We also revise up our 2021 GDP growth forecast to 8.3% from 7.2%.”

“We maintain our view of another 25bps rate cut in July.”