Malaysia Enters Recession

Malaysia Perspective| 15 June 2009

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Extract Malaysia’s Gross Domestic Product (GDP) plunged by 6.2% y-o-y in 1Q09 following steep declines in export and industrial production. This was the largest drop in a decade since the Asian Financial Crisis of 1998 and technically marked the beginning of a recession. The sharp contraction surprised analysts as consensus only expected a 3.9% decline y-o-y. The direction and performance of Malaysia’s economy last quarter followed that of other major and regional economies, said Maybank Investment Bank in a report. The US, Eurozone, Japan and Britain slipped deeper in recessions, dragging down Asia’s export-oriented economies and financial centres with them. OSK Research concurs, noting ...