Economists: Early Lockdown Led to Current GDP Plunge in Malaysia, Recovery on the Way

August 27, 2020

Economists have announced that Malaysia’s worst-ever second quarter gross domestic product (GDP) contraction was a consequence of its COVID-19 lockdown being put in place ahead of its rivals in the region. The Movement Control Order (MCO) executed by the Government of Malaysia to stem the spread of the pandemic, went into effect from the 18th of March 2020, far earlier than in Singapore, Indonesia, and Thailand, and spanned nearly three months.

Economist Dr Barjoyai Bardai of Universiti Tun Abdul Razak stated that the Malaysian economy went to a complete halt in the first quarter of the year, although the impact was only felt in the beginning of the second quarter, particularly in April when it peaked.