Laporan Ekonomi Malaysia Q1 2020

Malaysian Economy First Quarter 2020 1

FIRST QUARTER 2020: AN UPDATE

Highlights

• Global economy contracted
• Malaysian economy moderated
• Consumption activities remained resilient

International Performance

1. Following the COVID-19 pandemic, global GDP contracted 1.9% in Q1 2020 (Q1 2019: 3.3%).
The lockdown and containment measures to curb the spread of the virus has affected
global growth significantly. Many countries faced a multi-layered crisis comprising a health
shock, domestic economic disruptions, plummeting external demand, capital flow reversals,
and a collapse in commodity prices. In this regard, impacted countries have introduced
macro-financial measures to support affected households and businesses, as well as to
overcome the repercussions of the tightening global financial market conditions.

Real Gross Domestic Product for Selected Countries (% annual change)

% 1.2 6.4 1.3
-3.3 1.8 1.3 -2.2
8
6 1.8 Singapore
4 3.2 -1.6
2 0.3
0 Euro Area UK -6.8 South Korea
-2 Q1 2019 China
-4
-6 Q1 2020
-8 US

Source:

Fitch Ratings Global Economic Outlook – Crisis Update: 2 April 2020
IMF World Economic Outlook April 2020
Oxford Economics: The Economic Cost of Coronavirus Lockdowns

2 Malaysian Economy First Quarter 2020

Demand

2. Malaysia's GDP growth moderated to 0.7%, the lowest since the third quarter of 2009,
weighed down by slower economic activity arising from COVID-19 outbreak and the
subsequent containment measures implemented nationwide. Amid the slump in the
external sector, domestic demand recorded a steady growth rate of 3.7% attributed to
both private and public consumption activities.

• Private consumption expanded 6.7% supported by the stable labour market,
wage growth, stimulus measures coupled with low inflation and interest rates.

• Private investment declined 2.3% primarily due to weak investors' confidence
amid arising uncertainties surrounding COVID-19.

• Public consumption expanded by 5% in tandem with higher spending on supplies
and services.

• Public investment contracted to 11.3% mainly due to lower capital spending by
public corporations, particularly in the O&G subsector.

Real Gross Domestic Product (% annual change)

2018 2019 2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Share
(%)

Real GDP 4.8 4.3 5.2 4.7 4.4 4.8 4.5 4.8 4.4 3.6 0.7 100.0

DEMAND

Domestic Demand 5.5 4.3 4.0 5.5 6.8 5.7 4.5 4.5 3.5 4.8 3.7 95.5

Private Consumption 8.0 7.6 6.5 7.9 8.9 8.4 7.7 7.8 7.0 8.1 6.7 61.7

Private Investment 4.3 1.6 1.1 5.6 5.0 5.9 0.6 1.5 0.5 4.3 -2.3 16.8
Public Consumption 3.2 2.0 0.2 2.9 5.0 3.9 6.3 0.3 1.0 1.3 5.0 11.8

Public Investment -5.0 -10.8 -1.2 -10.0 -2.7 -6.0 -13.7 -7.8 -14.6 -8.0 -11.3 5.2
Exports 1.9 -1.3 2.3 2.0 0.5 2.9 0.1 0.5 -2.1 -3.4 -7.1 60.5

Imports 1.5 -2.5 -2.0 3.7 2.3 2.0 -1.6 -2.3 -3.5 -2.4 -2.5 55.1

SUPPLY

Services 6.8 6.1 6.5 6.6 7.3 6.9 6.4 6.1 5.8 6.2 3.1 58.4

Manufacturing 5.0 3.8 5.2 4.9 5.0 4.7 4.1 4.3 3.6 3.0 1.5 22.3
Mining -2.2 -2.0 -2.5 -1.3 -5.1 -0.1 -1.5 0.9 -4.1 -3.4 -2.0 7.3
Agriculture 0.1 2.0 3.1 -1.5 -1.2 0.2 5.8 4.3 4.0 -5.7 -8.7 6.5

Construction 4.2 0.1 4.9 4.8 4.7 2.5 0.4 0.5 -1.4 1.0 -7.9 4.5

Note : Total may not add up due to rounding and excluding change in stocks and import duties component.
Source: Department of Statistics, Malaysia.

Malaysian Economy First Quarter 2020 3

Supply

3. On the production side, growth was supported by the services and manufacturing
sectors.

• The services sector expanded 3.1% mainly supported by wholesale and retail trade
(2.1%); information and communication (6.7%); as well as finance and insurance (4.9%).

• The manufacturing sector grew 1.5% mainly contributed by the production of
petroleum, chemical, rubber and plastic products (3.9%); as well as electrical, electronic
and optical products (2.2%).

• The construction sector declined 7.9% following contraction in all subsectors: civil
engineering (-5.1%); residential buildings (-8.1%); non-residential buildings (-11.6%); and
specialised construction activities (-9%).

• The agriculture sector contracted 8.7% following a decline in the oil palm (-22%),
forestry and logging (-23.6%) and rubber (-18.3%) subsectors. On the contrary, livestock
and other agriculture subsectors expanded by 8.5% and 6.3%, respectively.

• The mining sector declined 2% due to lower production of crude oil and
condensate (-5.2%).

External Sector

4. Total trade expanded 1.2% to RM440.4 billion while the trade surplus increased marginally by
0.1% to RM37 billion. Gross exports grew 1.1% supported by higher exports of
manufactured and agriculture goods. Likewise, gross imports rose 1.3% attributed to
higher imports of intermediate and consumption goods.

External Trade (% annual change)

2018 2019P 2019P 2020p

Q1 Q2 Q3 Q4 Q1

Total Trade 6.3 -2.5 -1.8 -0.9 -3.7 -3.6 1.2
Gross Exports
Gross Imports 7.3 -1.7 -1.1 -0.4 -1.9 -3.4 1.1

Trade Balance 5.2 -3.5 -2.6 -1.4 -5.8 -3.9 1.3

p Preliminary 25.7 10.9 8.2 7.9 33.3 0.3 0.1
Source: MATRADE.

5. The current account surplus narrowed to RM9.5 billion or 2.6% of gross national income
(GNI) mainly due to lower surplus in goods account coupled with wider deficits in services
account.

4 Malaysian Economy First Quarter 2020

Current Account Balance (Net) (RM billion)

2018 2019r 2019r 2020p
Q1
Q1 Q2 Q3 Q4 9.5
7.5 2.6
Current Account 32.3 50.9 16.9 14.3 12.1 2.0 28.9
32.3 -8.0
% of GNI 2.3 3.5 4.8 3.9 3.3 -4.0 -6.0
-5.4
Goods 114.6 123.3 33.4 28.3 29.4 -15.2
Services -5.5
-17.5 -10.9 -1.7 -3.4 -1.8

Primary Income -45.1 -40.3 -9.2 -5.9 -9.9

Secondary Income -19.7 -21.3 -5.6 -4.7 -5.5

r Revised
p Preliminary
Assets : (-) denotes outflows due to the acquisition of assets abroad by residents.
Liabilities : (+) denotes inflows due to the incurrence of foreign liabilities.

Source : Department of Statistics, Malaysia.

International Reserves

6. As at 31 March 2020, Malaysia's international reserves stood at RM440.1 billion
(USD101.7 billion), sufficient to finance 7.7 months of retained imports and is 1.1 times total
short-term external debt.

Prices

7. The headline inflation, measured by the Consumer Price Index (CPI) increased 0.9% during
the first quarter of 2020 (Q1 2019: -0.3%). The increase was due to the expansion in several
groups. These groups include miscellaneous goods & services (2.5%), housing, water, electricity,
gas & other fuels (1.7%). Other groups that recorded increases include communication
(1.5%), health (1.4%), restaurants & hotel (1.1%) and food & non-alcoholic beverages (1%).
Meanwhile, both transport and clothing & footwear groups declined by 0.9% and 1.2%,
respectively. The contraction in the transport group was due to lower pump prices as a result
of a sharp decline in global crude oil prices.

8. The core index, which excludes volatile items of fresh food, as well as administered prices
of goods and services, expanded 1.4 % (Q1 2019: 0.3%). The increase was buoyed by groups
such as miscellaneous goods & services (2.5%), housing, water, electricity, gas & other fuels
(2%), communication (1.5%), education (1.4%), health (1.4%), as well as food & non-alcoholic
beverages (1.3%).

9. The Producer Price Index (PPI) for local production rose 0.6% (Q1 2019: -2.2%) mainly
due to agriculture, forestry & fishing (13.5%), manufacturing (0.8%) and electricity & gas
supply (0.8%) groups. On the other hand, mining and water supply contracted 11% and

Malaysian Economy First Quarter 2020 5

0.7%, respectively. Meanwhile, the increase in PPI by stages of processing was supported by
intermediate materials, supplies and components which edged up 1.1% and finished goods
by 0.6%. However, crude material declined at a softer pace of 1.1%.

Consumer Price Index (CPI) Producer Price Index (PPI)

% %
3
3
1.8
0.2 1.3 1.3 0.1
2 0.2 1.0 1.7 2 0.1
0.5 0.5 0.6 0.4 0.4
1 0.5 0.5 0.4 0.2 0.5 0.4 0.4 0.9 1 0.6 0.6
0.5 0.8 0.5 1.0 0 0.1 0.9
1.0 0.6 0.05.2 0.4 0.5 -0.3 -0.3 -0.3 0.4 1.6 1.9 0.7 0.1 0.1 0.1 0.8
-0.2 -0.5 --000...331 0.3 -1.1 -0.6 -1.0 -1.3 -0.9 -0.7 -0.2 -0.4 -0.9
0 -0.9
-0.8
-1 -1 -1.8 -1.3 -0.1 --00.5.1 -0.8 -0.6
-0.3 -2 -1.2 -1.6
-2 -0.3 -0.8 -1.5 -2.2 -1.0

-3 -2.3 -0.4 -1.4

-3 Q1 -2.0 -2.1

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020
2018 2019 2020

Food Transport Inflation (%) Agriculture, Forestry & Fishing Manufacturing
Housing Others PPI (%)
Mining Electricity & Gas

Source: Department of Statistics, Malaysia.

Labour Market

10. The labour market remained steady in the first quarter with the unemployment rate slightly
higher at 3.5% (Q4 2019: 3.2%), partially contributed by the negative impact of the COVID-19
pandemic. Nevertheless, the labour market still remains at its full employment level.
There were 15.2 million employed persons mainly in the services sector at 63.8% of total
employment, followed by manufacturing (16.6%) and agriculture (10.8%) sectors. Meanwhile,
salaries and wages in the manufacturing sector grew 3.4%, mainly driven by food, beverages
& tobacco; E&E; as well as non-metallic mineral, basic metal & fabricated metal subsectors.
Likewise, salaries and wages in the services sector grew 1.4%, mainly contributed by health,
education & arts, entertainment & recreation services; as well as professional & real estate
agent segments.

Employment Salaries and Wages

million % %
3.6 15 13.9
15.4 15.3 3.5
15.2 3.5 3.4 12
15.2 15.2 3.3
3.4 3.4 3.4 3.4 15.0 15.1 3.5 3.2
3.1
15.0 3.3 14.9 14.9 9 7.0
14.8 14.8 3.5 3.8 3.4
6 5.1
14.7 3.3 3.3 3.3 3.3 3.3 3 3.2 1.4

14.6 14.6 3.2
14.5

14.4 14.4 14.4

14.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 3.0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2017 2018 2019 2020 2017 2018 2019 2020

Employed persons (million) Unemployment rate Growth of Salaries & Wages in Manufacturing (%)
Growth of Salaries & Wages in Services (%)

Source: Department of Statistics, Malaysia.

6 Malaysian Economy First Quarter 2020

Monetary Aggregates

11. During the first quarter of 2020, money supply grew 3.7% mainly driven by higher
net claims on the Government. The Overnight Policy Rate (OPR), held at 3.00% since
May 2019, was reduced successively by 50 basis points in January and March 2020 to
2.50%. The adjustment is aimed at providing an accommodative monetary environment
to support economic growth amid subdued inflationary pressure.

12. It was a mixed performance for the ringgit during the quarter. The ringgit depreciated
against most major currencies within the range of 3.3% to 5.1%. The downward trend of
the ringgit was contributed by geopolitical uncertainties, declining crude oil prices and the
widespread of COVID-19 pandemic. However, the ringgit appreciated 0.5% against the
Korean won, Singapore dollar (0.6%), Pound sterling (1.2%), Thai baht (3.9%), Australian
dollar (7.9%) and Indonesian rupiah (12.2%).

Performance of Ringgit against Selected Currencies End-December 2019 Ð End-March 2020

100 Indonesian rupiah 1.2 3.9 12.2
Australian dollar 0.6 35 7.9
100 Thai baht 0.5
Pound sterling 7 9 11 13
Singapore dollar -3.3
100 Korean won -3.3 %

Chinese renminbi -4.7
Euro -4.9
-5.1
100 Philippine peso
US dollar

100 Japanese yen

-7 -5 -3 -1 0 1

Source: Bank Negara Malaysia.

Equity Market

13. In line with major regional peers, the FBM KLCI eased during the beginning of the quarter
and contracted 15% to close at 1,350.89 points (end-March 2019: 1,643.63 points). The market
commenced the quarter on a bearish sentiment until it hit its decade low of 1,219.72 points on
19 March. The record low performance was due to heightened concerns over uncertainties
in the global economic environment caused by the COVID-19 pandemic and measures
implemented to contain it. Other contributing factors include the disagreement between the
Organization of the Petroleum Exporting Countries (OPEC) and Russia as well as tensions
between the US and Iran.

Malaysian Economy First Quarter 2020 7

Performance of Selected Indices End-December 2019 Ð End-March 2020

Shanghai (SHCOMP) -14.2 -9.8
Nasdaq (CCMP) -15.0 -10
KLCI -16.3
Hong Kong (HSI)
Tokyo (NKY) -20.0
Seoul (KOSPI) -20.2

Singapore (FSSTI) -23.2
New York (DJIA) -23.2
London (UKX) -24.8
Jakarta (JCI)
-27.9
Mumbai (SENSEX) -28.6
Bangkok (SET) -28.7
-31.1
Ho Chi Minh (VNINDEX) -31.9
Manila (PCOMP)

-35 -30 -25 -20 -15 -5 0
%

Source: Bloomberg.

Federal Government Finance

14. Federal Government revenue in the first quarter of 2020 dropped significantly by 28.8%
to RM45.3 billion (Q1 2019: 17.2%; RM63.7 billion) due to adverse impact of COVID-19 crisis
which hampered domestic economic activities.

• Tax revenue decreased 2.2% to RM38.4 billion (Q1 2019: -23.6%; RM41.8 billion) on account
of lower collection from direct tax and indirect tax;

• Direct tax collection declined 8.6% to RM28.2 billion (Q1 2019: 5.1%, RM30.8 billion)
primarily due to lower collection from petroleum income tax of RM2.3 billion (Q1 2019:
RM4.1 billion) as a result of lower average crude oil price of USD50.5 per barrel compared
with USD63.1 per barrel in the corresponding quarter of 2019;

• Indirect tax collection decreased 6.5% to RM10.3 billion (Q1 2019: -16.8%; RM11 billion) due
to lower collection from excise duties, import duty and export duty. However, sales tax
and service tax stood at RM6.3 billion compared with RM6.1 billion in the corresponding
quarter of 2019; and

• Non-tax revenue recorded a lower collection at RM6.9 billion (Q1 2019: RM21.9 billion) as
receipts from dividend will only be received beginning second quarter onwards.

8 Malaysian Economy First Quarter 2020

15. The Federal Government total expenditure grew 4.4% to RM74.1 billion
(Q1 2019: RM71 billion) with both operating and development expenditure, recording an
increase due to the implementation of stimulus package measures.

16. Operating expenditure (OE) rose 5.2% to RM62.5 billion (Q1 2019: RM59.4 billion).
The growth was mainly attributed to higher emoluments, debt service charges, subsidies
and social assistance, retirement charges as well as supplies and services.

• E moluments increased 2.8% to RM19.8 billion (Q1 2019: RM19.3 billion) mainly due to
normal annual salary increment, while retirement charges amounted to RM7.4 billion.

• D ebt service charges stood at RM8.6 billion, ofwhich 98.5% was for domestic debt primarily
Malaysian Government Securities (MGS) and Malaysian Government Investment Issues
(MGII).

• Subsidies and social assistance registered an increase mainly due to higher payment of
fuel subsidies and the Cost of Living Aid.

• S upplies and services increased by 19.6% to RM6.2 billion, mainly due to higher spending
on repairs and maintenance as well as professional services fees.

17. Development expenditure (DE) increased 0.6% to RM11.6 billion during the quarter
(Q1 2019: RM11.5 billion) on account of higher spending in the social sector by 10.7% primarily
due to the larger outlays for health and housing subsectors. General administration sector
grew 10% as compared to the corresponding quarter last year. Despite accounting for the
largest share of DE, expenditure on the economic sector decreased marginally 1.4% to
RM6.2 billion due to lower outlays for public utilities and transportation projects. In addition,
spending on the security sector declined by 12.2% with lower outlays for both defence and
internal security subsectors.

18. Federal Government financial position recorded a deficit of RM28.1 billion.

Malaysian Economy First Quarter 2020 9

Federal Government Financial Position (RM billion)

2019p 2020b 2019 2020
Q1
264.4 244.5 Q1 Q2 Q3 Q4 45.3
263.3 241.0 69.9 62.5
Revenue 1.1 3.5 63.7 62.0 68.8 69.8 -17.2
Operating expenditure 54.2 56.0 0.1 11.6
Current balance 1.6 0.8 59.4 65.3 68.8 20.1 0.7
Gross development exp. 52.6 55.2 0.5 10.9
Less: Loan recoveries -51.5 -51.7 4.3 -3.3 0.0 19.6 -28.1
Net development exp. -3.4% -3.2% -19.5
Overall balance 11.5 12.3 10.3
% to GDP
0.2 0.4 0.5

11.3 11.9 9.8

-7.0 -15.2 -9.8

p Preliminary
b Budget estimate, excluding 2020 Budget and Economic Stimulus Package measures.
Source: Ministry of Finance, Malaysia.

19. Federal Government gross borrowings registered RM41.8 billion during the quarter
comprising MGS (RM18.5 billion), MGII (RM20.3 billion) and Treasury bills (RM3.0 billion).
Of the total, RM12.6 billion was for principal redemption while the remaining for deficit
financing and prefunding of future redemption.

20. Federal Government debt stood at RM823.8 billion as at end-March 2020
(2019: RM793 billion). From the total, RM793.5 billion or 96.3% was outstanding debts issued
in the domestic market while the balance was offshore borrowings mainly denominated in
USD and yen.

Federal Government Debt

RM billion
1000

800

600

400

200

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017 2018 2019 2020

Domestic Offshore borrowings

S0urce: Ministry of Finance, Malaysia.



Key Data



Malaysian Economy First Quarter 2020 Key Data 13

Q1 2019 Q4 2019 Q1 2020

POPULATION (thousand) 32,532 32,683 32,735

RM million % change RM million % change RM million % change

DOMESTIC PRODUCTION

Gross Domestic Product (constant 2015 prices) 341,636 4.5 370,128 3.6 344,155 0.7

Agriculture 24,660 5.8 24,572 -5.7 22,503 -8.7

Mining and quarrying 25,773 -1.5 26,365 -3.4 25,255 -2.0

Manufacturing 75,647 4.1 81,740 3.0 76,745 1.5

Construction 16,663 0.4 16,575 1.0 15,350 -7.9

Services 195,040 6.4 216,950 6.2 201,066 3.1

Gross Domestic Product (current prices) 361,960 4.4 395,823 4.4 367,223 1.5

Final consumption expenditure: Public 39,536 6.1 55,395 1.5 41,563 5.1

Private 215,191 8.4 232,147 9.2 231,643 7.6

Gross fixed capital formation: Public 21,201 -12.9 33,389 -6.9 18,816 -11.3

Private 63,284 1.3 50,782 5.5 61,956 -2.1

Exports of goods and services 239,611 1.1 253,117 -3.2 223,717 -6.6

Imports of goods and services 207,885 -0.6 224,845 -3.6 202,796 -2.4

NATIONAL INCOME AND EXPENDITURE 336,215 4.6 360,142 2.7 341,475 1.6
Gross National Income (constant 2015 prices)

Gross National Income (current prices) 352,731 4.2 380,585 3.7 361,229 2.4

Gross National Savings (current prices) 92,427 -5.6 87,508 -7.5 82,600 -10.6

Per Capita Income (current prices, RM) 43,371 3.5 46,579 3.0 44,140 1.8

2018 20191 20202

RM million % change RM million % change RM million % change

FEDERAL GOVERNMENT FINANCE 71 63 62 -28.8
Oil price (USD per barrel) 232,882 5.7 264,415 13.5 45,321 5.2
Revenue 230,960 6.1 263,343 14.0 62,536
Operating expenditure -17,216 -3.4
Current account surplus 1,922 1,072 10,942
Development expenditure (net) 55,307 -28,158
Overall deficit/surplus -53,385 28.5 52,570 -4.9
% to GDP -3.2
Domestic borrowing (net) -3.7 -51,498 –
Foreign borrowing (net) 54,427 -3.4 –
Change in assets –
-320 44,755
-722
6,977

-234

RM million % GDP RM million % GDP RM million % GDP

Federal Government debt3 49.7 764,233 50.6 793,533 -
1.5 28,765 1.9 30,257 -
Domestic debt 719,545
186,493 169,841
Offshore borrowing 21,504

Memorandum item:

Non-residents holdings of ringgit-denominated 165,777
Government debt securities

14 Key Data Malaysian Economy First Quarter 2020

Q1 2019 Q4 2019 Q1 2020

BALANCE OF PAYMENTS (NET) RM million RM million RM million
Balance on current account
Goods 16,919 7,500 9,504
Services 33,396 28,273 28,873
Primary income -1,670 -4,005 -7,953
Secondary income -9,229 -15,238 -5,993
Balance on capital and financial -5,578 -5,534 -5,423
accounts -13,282 -13,428
Net errors and omissions 223
Reserve assets 1,862 -4,745
5,499 -9,887 8,669
2,164

RM % % RM % % RM % %

million change share million change share million change share

EXTERNAL TRADE 236,063 -1.1 83.4 257,841 -3.4 85.1 238,685 1.1 84.5
Gross exports 196,899 0.2 6.6 219,439 -1.2 6.5 201,772 2.5 6.6
Manufactured -12.6 9.3 1.2 7.8 1.3 8.2
Agriculture 15,587 2.0 16,644 -23.9 15,782 -10.4
Mining 21,967 -2.6 53.9 20,181 -3.9 54.4 19,676 1.3 57.5
Gross imports 199,108 -0.2 12.0 221,410 1.0 12.1 201,693 8.1 8.7
Intermediate goods 107,357 -9.9 120,437 -8.9 116,023 -26.8 8.8
Capital goods 23,896 0.6 8.5 26,871 0.1 8.9 17,502 4.8
Consumption goods 16,967 -1.8 19,704 -3.6 17,778 1.2
Total trade 435,170 8.2 479,251 0.3 440,378 0.1
Trade balance 36,955 36,432 36,991

Trading partners (% share to total trade) 26.6 26.8 26.2
ASEAN 9.3 8.0 8.1
European Union 8.7 9.2 9.6
United States 7.5 6.8 7.6
Japan
China 16.6 18.0 16.0
Others 31.3 31.1 32.6

Gross international reserves 420.2 424.1 440.1
RM billion 103.0 103.6 101.7
USD billion
7.5 7.5 7.7
Months of retained imports 1.0 1.1 1.1
Short-term external debt (times)

PRICES Index % change Index % change Index % change
Consumer Price Index (2010=100) 120.8 -0.3 122.1 1.0 121.9 0.9
Producer Price Index (2010=100) 104.7 -2.2 106.3 0.6 105.3 0.6

LABOUR FORCE Thousands % change Thousands % change Thousands % change
Labour force 15,526.8 2.2 15,766.7 2.1 15,790.1 1.7
Unemployed 516.6 1.5 512.2 -0.8 546.6 5.8
Unemployment rate 3.3 3.2 3.5

Malaysian Economy First Quarter 2020 Key Data 15

Mar 2019 Dec 2019 Mar 2020

RM million % change RM million % change RM million % change

MONEY AND BANKING (end period) 427,697 2.5 452,559 5.8 461,694 7.9
Money supply M1
1,889,751 5.9 1,950,567 3.5 1,960,827 3.8
M2
M3 1,898,874 6.0 1,961,553 3.5 1,968,375 3.7
Banking system
Fund 1,958,691 6.7 2,013,307 4.0 2,008,712 2.6
Loan 7.3 4.2 3.1
Loan-to-fund4 ratio 1,620,936 1,675,513 1,671,930
Interest rates (average rates at end of period, %) 82.8 83.2 83.2
3-month interbank
Commercial banks 3.67 3.29 2.76
Fixed deposits: 3-month
12-month 3.15 2.90 2.38
Savings deposit
Weighted base rate (BR) 3.33 3.09 2.59
Base lending rate
Treasury bills (3-month) 1.07 0.97 0.78
Malaysian Government securities: 1-year
3.92 3.68 3.18
5-year
6.91 6.71 6.26

3.25 - -

3.36 2.96 2.53

3.54 3.18 3.10

Apr 2019 Dec 2019 Apr 2020

Movement of ringgit5 (% annual change) 5.7169 -1.4 5.6592 1.7 5.9004 -3.1
RM per SDR 4.1355 -5.2 4.0925 1.1 4.3260 -4.4
RM per US dollar 4.6264 2.7 4.5852 3.2 4.6993 -1.6
RM per euro 3.7066 -3.1 3.7655 -0.5 4.0603 -8.7
RM per 100 Japanese yen 0.6138 0.8 0.5866 2.6 0.6128 0.2
RM per Chinese renminbi 3.0362 -2.5 3.0387 -0.2 3.0663 -1.0
RM per Singapore dollar 0.0291 -2.7 0.0295 -3.1 0.0290 0.3
RM per 100 Indonesian rupiah
1,642.29 1,588.76 1,407.78
Bursa Malaysia 1,747.91 1,711.84 1,470.25
FBM KLCI
Market capitalisation (RM billion)

SOCIAL INDICATORS 2017 2018 2019
Life expectancy at birth: Male (years)
Female (years) 72.1 72.2 72.2
Infant mortality rate (per 1000 live births) 77.1 77.1 77.3
Literacy rate 6.9 7.2 n.a.
Tourist arrivals (million arrivals) 95.9 95.9 n.a.
25.9 25.8 26.1

1 Preliminary.
2 Budget estimate, excluding 2020 Budget and Economic Stimulus Package measures.
3 For 2020, data is at end-March 2020.
4 Fund comprises deposits (exclude deposits accepted from banking institutions) and all debt instruments issued (including subordinated debt, debt certificates/sukuk,
commercial papers and structured notes).
5 Annual rate of appreciation (+) or depreciation (-).
Source : Department of Statistics, Malaysia; Ministry of Finance, Malaysia; Bank Negara Malaysia; and Tourism Malaysia.