Malaysia recorded a Gross Domestic Product (GDP) contraction of 2.7% in 3Q 2020 q-o-q as compared to 2Q 2020 ( 17.1%). Nevertheless, Bank Negara Malaysia (BNM) anticipates a contraction between 3.5% and 5.5% of GDP growth in 2020.
In terms of recovery momentum, manufacturing (3.3%) and construction ( 12.4%) showed the strongest resilience and improved recovery as compared q-o-q from 2Q 2020. This is followed by mining and quarrying ( 6.8%) and services ( 4%). Only agriculture recorded negative growth by 1.7% as compared to 2Q.
The Consumer Sentiments Index (CSI) improved 9% while the Business Confidence Index (BCI) increased 25%. The Consumer Price Index (CPI) hovered at 120 points and the Industrial Production Index (IPI) was 0.8 points in 3Q 2020, a marginal decrease y-o-y.
Net Exports increased by 11% y-o-y as at 3Q 2020, creating a trade surplus of RM60 billion mainly supported by manufacturing and agriculture goods. Foreign Direct Investment (FDI) was recorded at RM51billion as at 3Q 2020 as compared y o y (RM27 billion).