Prolonging of MCO Could Adversely Impact Malaysia’s GDP, Says Minister

Malaysia’s Minister of Economic Affairs, Datuk Seri Mustapa Mohamed, has stated that the country's 2020 Gross Domestic Product (GDP) may fall to 2016 GDP levels if the Movement Control Order (MCO) is extended and the Government does not take measures to phase it out. In 2016, Malaysia's GDP stood at MYR 1.23 trillion while in 2019, the GDP grew 4.3% YoY to reach MYR 1.48 trillion.

The Malaysian Institute of Economic Research (MIER) has projected 2.4 million job losses in Malaysia if the MCO is extended, indicating that several businesses are halted during this period. Bank Negara Malaysia expects the unemployment rate to go up to 8.0% in 2020, compared to stable unemployment rate in the range of 3.2% to 3.3% over t...