Malaysia's economy contracts 5.5 per cent this year

KUALA LUMPUR: The government expects the country's economic outlook to contract to 5.5 per cent to 3.5 per cent this year following the impact of COVID-19.

Minister in the Prime Minister's Department (Economy), Datuk Seri Mustapa Mohamed said the country's Gross Domestic Product (GDP) contracted 8.3 per cent during the first half of this year.

However, the Jeli Member of Parliament stressed that the negative impact of the economy this year is only temporary and is expected to recover next year.

"Economic indicators in August and September have shown better than the first half of 2020.

"Malaysia's exports rose to 13.6 per cent, the value of wholesale and retail trade sales rose 2.5 per cent, passenger car sales in September rose eight per cent and the labour market remained at 4.7 per cent unemployment rate in July and September," he told the Dewan Rakyat today.

He said this during oral answer-session, answering a question from Datuk Mohd Fasiah Mohd Fakeh (BN-Sabak Bernam).

Mohd Fasiah asked the Prime Minister to state the extent of the economic impact from the COVID-19 pandemic, especially on individuals, households and business companies as well as various sectors of the country's economy.

Commenting further, Mustapa said the government expected the country's economy may be affected in October and November following the implementation of the Conditional Movement Control Order (CMCO) in several states in an effort to curb the third wave of COVID-19.

However, he stressed that the government has mobilised various initiatives to ensure the well-being of the people and the country's economy affected by the pandemic.

The Dewan Rakyat sitting this time will last 27 days until December 15 based on the new normal by complying with the standard operating procedures (SOP) set to curb the spread of COVID-19.

COVID-19 security and prevention controls are becoming tighter as all MPs including officers, management, media personnel and general staff are required to undergo the COVID-19 test.