RAM Ratings Revises Malaysia’s Forecasted GDP for 2021 Amidst Further Containment Measures

RAM Ratings (RAM) has lowered its forecast of Malaysia’s gross domestic product (GDP) for 2021 to 5.8%, from its previous estimate of 7.1%, given the on-going Movement Control Order (MCO 2.0) until the 4th of February 2021. RAM added that every consequent day the MCO 2.0 is extended would lead to a trimming of 0.04 percentage points off Malaysia's 2021 GDP forecast.

Economic losses during the MCO 2.0 are anticipated at to average between MYR 500 million to MYR 600 million per day, according to RAM. Despite this, RAM states that the economic impact of the MCO 2.0 is expected to be less severe than that of the initial Movement Control Order of 2020 (MCO 1.0); which showed a total loss of MYR 2.4 billion, as estimated by the Government of Malaysia.

According to RAM...