Malaysia’s economy contracted 4.5% in 3Q 2021 y-o-y (3Q 2020: -2.7%), while it contracted by -0.3% q-o-q (2Q 2021: 16.1%). The Gross Domestic Product (GDP) growth was weighed down by strict containment measures from Phase 1 of the National Recovery Plan (NRP) as reported by Bank Negara Malaysia (BNM).
All economic sectors recorded a decline during the review period. The Construction sector was most impacted (-20.6%) followed by Services (-4.9%), Mining and Quarrying (-3.6%) and Agriculture (-1.4%). The manufacturing sector remained resilient, contracting only marginally 0.8% as production was constrained to essential activities, but gradually recovered as restrictions eased.
In the year ahead, some growth is expected with the resumption of more economic activities, successful vaccination rollout and supportive policy measures.