Key Highlights:

• The Malaysian economy contracted by 17.1 per cent in Q2 2020 from a marginal growth recorded in the first quarter of 2020. This contraction was the first recorded since the third quarter of 2009, amid Global Financial Crisis (2008-2009) and the lowest since the first quarter of 1998 (-11.2%).
• The enforcement of Movement Control Order (MCO), Conditional Movement Control Order (CMCO) and Recovery Movement Control Order (RMCO) resulted in lower production in all economic sectors.
• The unemployment rate continued to weaken at 5.1 per cent in Q2 2020 (Q1 2020: 3.5 per cent), undermining purchasing power and domestic demand.
• Bank Negara Malaysia (BNM) revised GDP forecast for 2020 from -3.5 per cent to -5.5 per cent.