Malaysian Economy to Rebound in 1Q 2021 Led by Robust Export Growth: Kenanga Research

On the back of better-than-expected growth in exports, Malaysia’s gross domestic product (GDP) growth figure is expected to see a sharp rebound in 1Q 2021 according to Kenanga Research. This is mostly driven by strong performance of the manufacturing export sector, boosted by the technology upcycle amidst strong demand worldwide for information technology-related products and commodities subsequent to the economic reopening. As such, unless there is a drastic change in the trajectory of COVID-19, the 2021 GDP growth projection is forecast at 6.5% versus 5.6% in 2020.

Why it Matters?

Malaysia’s economy is expected to see a more robust recovery path from 2Q 2021 due to the base effect, supported by sizeable fiscal measures and the gradual re...