Maybank Investment Bank Revises Down Malaysia’s GDP Forecast for 2021 to 4.2% Considering COVID-19 Restrictions

Maybank Investment Bank has lowered its 2021 growth forecast for Malaysia’s gross domestic product (GDP) to 4.2% from its previous estimate of 5.1%. According to Suhaimi Ilias, Chief Economist at Maybank Investment Bank, the downward revision considers the heightened lockdown and restriction measures imposed within the country to slow the spread of COVID-19.

Why it Matters?

Malaysia still remains in Phase 1 of the four phase-National Recovery Plan, as the required conditions to move into Phase 2 are not met. These conditions include lowering the number of daily cases to 4,000 (this is currently beyond 6,000), moderate usage of beds in intensive care units, and an inoculation rate of at least 10% of the population.

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