Department of Statistics Malaysia Predicts a Sharp Economic Decline in the Short Term

The latest Leading Index (LI) compiled by the Department of Statistics Malaysia (DOSM) measuring the turning points in economic activity has reported the largest monthly decline in economic activity since November 1991 by falling further from negative 0.8% in the prior month to negative 4.9% in March 2020.

Meanwhile, the annual change of LI recorded a negative 3.6% in March 2020 compared to 1.7% in February 2020.

According to news reports, the fall in economic activity was driven by the fall in projected sales value in the manufacturing sector and the number of new companies registered. DOSM noted that the steep decline in the LI was a reflection of closure of non-essential business activities due to measures taken to curb the spread of COVID-19, and added that Malaysia...