MCO 2.0 to Lower Malaysia’s GDP Growth by 0.7 to 0.9 Ppt in 2021: Analysts

Malaysian analysts have estimated that the second round of the movement control order (MCO 2.0) to be implemented from the 13th to 26th of January 2021 will lower the country’s gross domestic product (GDP) growth by 0.7 to 0.9 percentage points (ppt) in 2021, according to local media reports.

According to MIDF Research, the impact of the two-week MCO 2.0 in five states (Selangor, Penang, Johor, Melaka and Sabah) and federal territories (Putrajaya, Kuala Lumpur and Labuan), as well as the conditional MCO (CMCO) implemented in six other states could slow GDP growth by up to 0.8 ppt, resulting in a slower increase of Malaysia’s economic growth at 6.2% year-on-year (YoY) compared to their current projection of 7% YoY. In total, the states and federal territories affect...