Laporan Ekonomi Malaysia Q2 2020

Malaysian Economy Second Quarter 2020 1

SECOND QUARTER 2020: AN UPDATE

Highlights

• Global economy affected by the unprecedented pandemic
• Malaysia in for a V-shaped recovery
• Public consumption cushioned the contraction

International Performance

1. The COVID-19 pandemic has severely affected the global economy with growth projected
to contract by 4.9% in 2020. For the second quarter of 2020 (Q2 2020), almost all countries
recorded a negative growth. Economies of advanced countries contracted 8% with the US
declining by 9.5%. With the exception of China (3.2%), emerging countries contracted by 5%.

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

% 1.2 1.1 1.2 6.2 2.1 5.1
-9.9 3.2 0.1
8
4 2.0 Japan -2.9
0
-4 -5.3
-8
-12 -9.5 -12.6
-16
-20 -15.0 -21.7 China South Korea Singapore Indonesia
-24 US Euro Area UK

Q2 2019 Q2 2020

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 Second Quarter 2020

Demand

2. The Malaysian economy contracted 17.1% during Q2 2020 attributed to weak
domestic demand which shrunk 18.7%. Furthermore, sluggish external demand following
heightened uncertainty contributed to the subdued economic performance during the
quarter. However, on a monthly basis, GDP growth showed significant improvements
from -28.6% in April to -19.5% in May and subsequently to -3.2% in June 2020.

• Private consumption declined 18.5% due to reduced household spending
with the implementation of the Movement Control Order (MCO).

• Private investment remained subdued at 26.4% largely due to lower capital
outlays, affected by uncertainty caused by the outbreak.

• Public consumption expanded 2.3% on account of higher expenditure related to
health, safety and security segments.

• Public investment contracted further to 38.7% mainly due to lower capital spending
by public corporations.

Real Gross Domestic Product (% annual change)

2018 2019 2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 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 -17.1 100.0

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 -18.7 92.4
Private Consumption 8.0 7.6 6.5 7.9 8.9 8.4 7.7 7.8 7.0 8.1 6.7 -18.5 57.3
Private Investment 4.3 1.6 1.1 5.6 5.0 5.9 0.6 1.5 0.5 4.3 -2.3 -26.4 17.4
Public Consumption 3.2 2.0 0.2 2.9 5.0 3.9 6.3 0.3 1.0 1.3 5.0 2.3 13.9

Public Investment -5.0 -10.8 -1.2 -10.0 -2.7 -6.0 -13.7 -7.8 -14.6 -8.0 -11.3 -38.7 3.8
Exports 1.9 -1.3 2.3 2.0 0.5 2.9 0.1 0.5 -2.1 -3.4 -7.1 -21.7 60.6

Imports 1.5 -2.5 -2.0 3.7 2.3 2.0 -1.6 -2.3 -3.5 -2.4 -2.5 -19.7 55.5

SUPPLY

Services 6.8 6.1 6.5 6.6 7.3 6.9 6.4 6.1 5.8 6.2 3.1 -16.2 57.8
Manufacturing 5.0 3.8 5.2 4.9 5.0 4.7 4.1 4.3 3.6 3.0 1.5 -18.3 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 -20.0 7.2
Agriculture 0.1 2.0 3.1 -1.5 -1.2 0.2 5.8 4.3 4.0 -5.7 -8.7 1.0 8.5

Construction 4.2 0.1 4.9 4.8 4.7 2.5 0.4 0.5 -1.4 1.0 -7.9 -44.5 3.1

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 Second Quarter 2020 3

Supply

3. On the production side, all sectors in the economy recorded sluggish performance except
agriculture.

• The services sector contracted 16.2% weighed down by wholesale and retail trade
(-23.3%); food & beverages and accommodation (-40.9%); as well as transportation and
storage (-44.8%).

• The manufacturing sector declined 18.3% affected by lower production of electrical,
electronic and optical products (-8.8%); petroleum, chemical, rubber and plastic products
(-13.3%); as well as non-metallic mineral products, basic metal and fabricated metal
products (-40.2%). Nonetheless, vegetable and animal oils & fats and food processing
industries expanded 9.2% supported by increasing demand for food-related products.

• The construction sector decreased significantly by 44.5% following contraction in all
subsectors: civil engineering (-59.4%), residential buildings (-39.2%), non-residential
buildings (-36.8%) and special trade activities (-29.8%).

• The agriculture sector grew 1% supported by expansion in the oil palm (7.5%),
other agriculture (4.5%) and livestock (1.3%) subsectors. On the contrary, forestry and
logging as well as rubber subsectors contracted 22.3% and 22.1%, respectively.

• The mining sector recorded a double-digit decline of 20% due to lower production of
crude oil and condensate (-21.5%) as well as natural gas (-18.7%).

External Sector

4. Total trade contracted 14.7% to RM393 billion while trade surplus decreased 9.1% to
RM27.6 billion. Gross exports declined 14.3% due to lower exports of
manufactured, agriculture and mining goods in line with the subdued performance
of global trade. At the same time, gross imports dropped 15.1% due to lower imports of
intermediate and consumption goods.

External Trade (% annual change)

2018 2019P 2019P 2020p

Q1 Q2 Q3 Q4 Q1 Q2

Total Trade 6.3 -2.5 -1.8 -0.9 -3.7 -3.6 1.2 -14.7

Gross Exports 7.3 -1.7 -1.1 -0.4 -1.9 -3.4 1.1 -14.3

Gross Imports 5.2 -3.5 -2.6 -1.4 -5.8 -3.9 1.3 -15.1

Trade Balance 25.7 10.9 8.2 7.9 33.3 0.3 0.0 -9.1

p Preliminary
Source: Department of Statistics, Malaysia and MATRADE

4 Malaysian Economy Second Quarter 2020

5. The current account remained in surplus of RM7.6 billion or 2.5% of gross national income
(GNI) mainly supported by surplus in goods account and lower deficit in income account.

Current Account Balance (Net) (RM billion)

2018 2019r 2019r 2020p
Q1 Q2
Q1 Q2 Q3 Q4
7.5 9.5 7.6
Current Account 32.3 50.9 16.9 14.3 12.1 2.0 2.6 2.5
32.3 28.9 25.9
% of GNI 2.3 3.5 4.8 3.9 3.3 -4.0 -8.0 -12.5
-6.0 -4.0
Goods 114.6 123.3 33.4 28.3 29.4 -15.2 -5.4 -1.9
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 30 June 2020, Malaysia's international reserves stood at RM443.1 billion
(USD103.4 billion), sufficient to finance 8.3 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) dropped 2.6% during
the quarter. The drag was attributed to several groups which include transport (-18.8%),
housing, water, electricity, gas & other fuels (-2.6%) as well as clothing & footwear (-1.1%).
The contraction in transport group was due to a sharp decline in pump prices. Meanwhile,
food & non-alcoholic beverages (1.4%), health (1.1%) and alcoholic beverages & tobacco (0.2%)
recorded an increase. Other groups that recorded an increase include miscellaneous goods
& services (2.8%), communication (1.6%), education (1%), recreation, services & culture (0.6%)
and restaurants & hotels (0.6%).

8. The core index increased 1.2% in Q2 2020. The increase was buoyed by miscellaneous goods
& services (2.8%), communication (1.6%), housing, water, electricity, gas & other fuels (1.6%).
Other groups that recorded an increase are health (1.1%), education (1%), recreation services
& culture (0.6%) and restaurants & hotels (0.6%).

9. The Producer Price Index (PPI) for local production declined 4.9% in Q2 2020 (Q2 2019: -1.6%)
mainly due to mining (-51.4%), water supply (-1.1%), manufacturing (-0.7%) and electricity &

Malaysian Economy Second Quarter 2020 5

gas supply (-0.2%) sectors. On the contrary, agriculture, forestry & fishing increased 9.8%.
The decrease in PPI by stages of processing was due to the decline in crude material (-24.5%)
as well as intermediate materials, supplies and components (-0.6%). On the upside, prices of
finished goods increased at a softer pace by 0.3%.

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

% %
3 4

2 1.8 1.3 0.5 0.2 0.6 1.3 1.0 0.9 2 0.1 0.1 0.6 0.6
1 0.002..25 0.4 -000...341 0.5 0.4 0.4 -0000....3341 0 1.6 1.9 0.1 0.7
0.5 00..25 -0.3 0.5 0.4 0.4 -2 -0.6 0.8
1.0 0.5 -0.5 0.5 -0.3 0.8 0.5 0.4 0.4 -1.0 0.7 0.1 0.1 0.1 -0.4 0.9 0.7
0 0.6 0.3 -0.3 -0.3 0.4 -1.1 -1.8 -1.3 -1.3 -0.9 ---000...715 --00..28 -0.9 -4.1
-0.2 -0.8 -0.1 -1.6 -1.0
-1.5 -0.4 -1.4 -1.2 -2.1
-1 -0.3 -2.7 -2.0
-0.3 -2.3 -2.2

-2

-3 -0.6 -4
-2.6
-0.6
-4 -6 -4.9

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

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 closure of operations for most businesses during the MCO has directly affected the
labour market. During Q2 2020, the unemployment rate spiked to 5.1% or 791,800 persons
(Q1 2020: 3.5% or 546,600 persons) with total employment at 14.9 million persons.
The services sector remains the main source of employment at 63.6%, followed by
manufacturing (16.7%) and agriculture (11.2%) sectors. Meanwhile, salaries and wages in the
manufacturing sector shrank by 4%, mainly in textiles, wearing apparel, leather & footwear;
as well as transport equipment & other manufacturers subsectors. Likewise, salaries and
wages in the services sector declined 6.4%, mainly in information & communication and
transportation & storage; as well as wholesale & retail trade, F&B and accommodation
segments.

Employment Salaries and Wages

million % %
5.5 15
15.4 15.2 15.3 5.1 5.0 10 10.1
15.2 15.1 15.2 4.5
4.0 5 3.7
15.0 15.0 14.9 3.5 3.9 4.4
14.9 14.9 3.0
14.8 14.8 2.5
14.7
14.6 3.3 3.3 3.4 3.3 3.3 3.3 3.3 3.2 3.5 0

14.4 -5 -4.0

-6.4

14.2 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2018 2019 2020
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 Second Quarter 2020

Monetary Aggregates

11. Money supply expanded 5.6% during Q2 2020 driven by higher net claims on
Government. The Overnight Policy Rate (OPR) was reduced by 50 basis points in
May to 2.00%. The adjustment ofOPR was necessary to preserve the degree ofmonetary
accommodativeness amid muted inflationary pressures and to support improvement in
economic activity.

12. During the quarter, the ringgit appreciated 0.2% against the Chinese renminbi, US
dollar (0.5%) and Pound sterling (0.9%). However, the ringgit depreciated against regional

currencies within the range of 0.1% to 12.3%. The positive momentum of local note was

mainly driven by improved crude oil prices as OPEC eased production cuts following

investors’ optimism over the COVID-19 vaccine development.
Performance of Ringgit against Selected Currencies End-March 2020 Ð End-June 2020

Pound sterling 0.9
US dollar 0.5
0.2
Chinese renminbi -0.1
100 Japanese yen -1.4
-1.4
Euro -1.5
100 Philippine peso -1.7
-5.0
100 Korean won
Singapore dollar -9.8

100 Thai baht -12.3
Australian dollar
100 Indonesian rupiah

-14 -12 -10 -8 -6 -4 -2 0 2
%

Source: Bank Negara Malaysia.

Equity Market

13. After recovering from March lows, a bullish trend was observed for the FBM KLCI which
ended the quarter at 1,500.97 points (end-June 2019: 1,672.13 points). Similarly, the uptrend
was also evident in other regional indices. The positive momentum in the domestic market
was mainly attributed to a confluence of factors. These include accommodative global and
domestic monetary stances, improved commodity prices and various stimulus packages
launched by the Government. In addition, the resumption of economic activities improved
investors’ risk appetite.

Malaysian Economy Second Quarter 2020 7

Performance of Selected Indices End-March 2020 Ð End-June 2020

Nasdaq (CCMP) 20.2 24.5 30.6
Ho Chi Minh (VNINDEX) 18.9 25
18.5 30 35
Seoul (KOSPI) 17.8 %
Bangkok (SET) 17.8
Mumbai (SENSEX) 16.7

Tokyo (NKY) 11.1
New York (DJIA) 8.8
Manila (PCOMP) 8.5
8.1
KLCI
London (UKX) 4.4 10 15 20
Shanghai (SHCOMP) 3.5

Jakarta (JCI) 5
Singapore (FSSTI)

Hong Kong (HSI)

0

Source: Bloomberg.

Federal Government Finance

14. In Q2 2020, Federal Government revenue reduced by 9.1% to RM56.4 billion
(Q2 2019: 18.5%; RM62.1 billion) partly due to the MCO to prevent the spread of COVID-19
pandemic.

• Tax revenue declined 38.2% to RM26.8 billion (Q2 2019: -2.6%; RM43.4 billion)
as result of lower collection from direct tax and indirect tax;

• Direct tax collection decreased 40.8% to RM18.6 billion (Q2 2019: 11.3%,
RM31.4 billion) mainly due to lower collection from corporate income tax of RM6.9 billion
(Q2 2019: RM16.1 billion) and reduced petroleum income tax collection of RM2.4 billion
(Q2 2019: RM4.5 billion) following a slump in global crude oil prices averaging USD31.4
per barrel (Q2 2019: USD68.3 per barrel).

• Indirect tax collection dropped 31.1% to RM8.2 billion (Q2 2019: -18.6%; RM11.9 billion)
owing to lower collection from excise duties and export duty. Likewise, sales tax and
service tax recorded lower collection of RM6.1 billion compared with RM7 billion in the
corresponding quarter of 2019; and

• Non-tax revenue increased to RM29.6 billion (Q2 2019: RM18.7 billion) mainly contributed
by PETRONAS dividend amounting to RM16 billion which were received in stages
beginning April 2020. In addition, a special contribution of RM5 billion from KWAP was
received to partly finance the pension outlays.

8 Malaysian Economy Second Quarter 2020

15. The Federal Government total expenditure increased 4.6% to RM81.1 billion
(Q2 2019: 7.6%; RM77.6 billion) due to PRIHATIN and PENJANA measures with most of the
allocation disbursed at the beginning of the quarter. In response to higher expenditure,
the Government will establish a dedicated fund with the tabling of a new bill for the
implementation of economic stimulus packages and recovery plan. The Federal Government’s
total expenditure for the first half of the year stood at RM155.3 billion or 52.3% of the allocated
budget.

16. Operating expenditure (OE) decreased to RM64.6 billion (Q2 2019: RM65.3 billion).
The reduction was due to lower spending on supplies and services; grants and transfers as
well as other expenditures.

• O utlays for supplies and services declined 1.9% to RM7.2 billion particularly due to
reduced spending on professional fees, communication and utilities as well as travel and
living expenses.

• Grants and transfers decreased 22.2% to RM3.0 billion as a result of lower disbursement
for statutory bodies’ grants.

• Other expenditures declined following the absence of GST refunds.

• In contrast, outlays for emoluments and retirement charges increased to RM21.6 billion
and RM7.1 billion, respectively. The growth was partly due to the special cash assistance
payments for public servants and pensioners during the quarter.

17. Development expenditure (DE) increased to RM16.5 billion during the quarter
(Q2 2019: RM12.2 billion). The economic sector recorded a higher spending by 63.9% primarily
due to PRIHATIN and PENJANA programmes. However, outlays for social sector contracted
30.1% to RM1.8 billion as a result of weaker spending across all subsectors during the MCO
period. Similarly, the security sector recorded a decrease of 27% to RM0.5 billion following
lower spending in defence subsector while general administration sector declined 10.5% to
RM0.6 billion. The outlays for PRIHATIN and PENJANA measures registered approximately
RM20 billion with the bulk of spending was channelled for Bantuan Prihatin Nasional and
Wage Subsidy Programme.

18. Federal Government financial position recorded a deficit of RM24.6 billion.

Malaysian Economy Second Quarter 2020 9

Federal Government Financial Position (RM billion)

2019p 2020b 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2
69.9
Revenue 264.4 244.5 63.7 62.0 68.8 69.8 45.3 56.4
Operating expenditure 263.3 241.0 0.1
Current balance 1.1 3.5 59.4 65.3 68.8 20.1 62.5 64.6
Gross development exp. 54.2 56.0 0.5
Less: Loan recoveries 1.6 0.8 4.3 -3.3 0.0 19.6 -17.2 -8.2
Net development exp. 52.6 55.2 -19.5
Overall balance -51.5 -51.7 11.5 12.3 10.3 11.6 16.5
% to GDP -3.4% -3.2%
0.2 0.4 0.5 0.7 0.1

11.3 11.9 9.8 10.9 16.4

-7.0 -15.2 -9.8 -28.1 -24.6

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

19. The Federal Government continues to source its fund-raising activity from the domestic
market. Gross borrowings amounted to RM59 billion, of which RM19 billion was raised
through Malaysian Government Securities (MGS), RM20 billion Malaysian Government
Investment Issues (MGII) and Treasury bills (RM20 billion). Principal repayment made during
the quarter stood at RM28.5 billion while the balance was for deficit financing, particularly
to finance the economic stimulus packages and recovery plan to contain the impact of the
COVID-19 pandemic as well as prefunding for future redemption.

20. Federal Government debt recorded RM854.1 billion or 57.7% of GDP as at end-June 2020.
Based on the statutory limit calculation which comprises outstanding MGS, MGII and
Malaysia Islamic Treasury Bills (MITB), debt to GDP stood at 53.2%, below the 55% ceiling.

Federal Government Debt

RM billion 57.7 %
1,000 52.5 60
51.9 50.1 51.2 55
800 50
600 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 45
400 40
200 35
30
0 Q1

2016 2017 2018 2019 2020

Domestic Offshore borrowing % of GDP

Source: Ministry of Finance, Malaysia.



Key Data



Malaysian Economy Second Quarter 2020 Key Data 13

Q2 2019 Q1 2020 Q2 2020

POPULATION (thousand) 32,523 32,624 32,657

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

DOMESTIC PRODUCTION 349,177 4.8 344,142 0.7 289,564 -17.1
Gross Domestic Product (constant 2015 prices) 24,287
Agriculture 26,105 4.3 22,503 -8.7 24,527 1.0
Mining and quarrying 79,008
Manufacturing 16,065 0.9 25,255 -2.0 20,891 -20.0
Construction
Services 199,731 4.3 76,745 1.5 64,512 -18.3
Gross Domestic Product (current prices) 370,970
Final consumption expenditure: Public 40,456 0.5 15,350 -7.9 8,916 -44.5
Private 220,037
Gross fixed capital formation: Public 18,636 6.1 201,053 3.1 167,439 -16.2
Private 72,947
Exports of goods and services 244,423 4.8 367,210 1.5 301,889 -18.6

0.4 41,568 5.1 41,346 2.2

8.8 231,643 7.6 178,500 -18.9

-6.7 18,816 -11.3 11,287 -39.4

2.6 61,956 -2.1 53,038 -27.3

1.3 223,717 -6.6 183,601 -24.9

Imports of goods and services 219,566 -1.1 202,796 -2.4 170,159 -22.5

NATIONAL INCOME AND EXPENDITURE 347,423 6.4 341,462 1.6 289,196 -16.8
Gross National Income (constant 2015 prices) 365,109
Gross National Income (current prices) 6.4 361,217 2.4 297,938 -18.4
Gross National Savings (current prices) 99,960
Per Capita Income (current prices, RM) 44,905 4.6 82,582 -10.7 76,157 -23.8

5.9 44,289 2.0 36,493 -18.7

2018 20191 20202

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

FEDERAL GOVERNMENT FINANCE 71 63 62 -7.1
Oil price (USD per barrel) 232,882 5.7 264,415 13.5 244,530 -8.1
Revenue 230,960 6.1 263,343 14.0 241,020
Operating expenditure 4.6
Current account surplus 1,922 1,072 3,510
Development expenditure (net) 55,307 55,234
Overall deficit/surplus -53,385 28.5 52,570 -4.9 -51,724
% to GDP
Domestic borrowing (net) -3.7 -51,498 -3.2
Foreign borrowing (net) 54,427 -3.4 –
Change in assets –
-320 44,755 –
-722
6,977

-217

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

Federal Government debt3 49.7 764,233 50.6 824,033 55.7
1.5 28,765 1.9 30,035 2.0
Domestic debt 719,545
186,493 181,198
Offshore borrowing 21,504

Memorandum item:

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

14 Key Data Malaysian Economy Second Quarter 2020

Q2 2019 Q1 2020 Q2 2020

BALANCE OF PAYMENTS (NET) RM million RM million RM million
Balance on current account
Goods 14,340 9,504 7,556
Services 28,290 28,873 25,907
Primary income -3,433 -7,953 -12,465
Secondary income -5,861 -5,993 -3,952
Balance on capital and financial -4,656 -5,423 -1,934
accounts -18,886 -13,428 19,816
Net errors and omissions
Reserve assets 3,187 -4,745 5,898
1,359 8,669 6,362

RM % % RM % % RM % %

million change share million change share million change share

EXTERNAL TRADE 245,436 -0.4 84.4 238,684 1.1 84.5 210,303 -14.3 86.6
Gross exports 207,063 0.2 6.7 201,772 2.5 6.6 182,066 -12.1 7.6
Manufactured 1.5 8.1 1.2 8.2 5.5
Agriculture 16,552 -0.8 15,781 -10.4 15,910 -3.9
Mining 19,937 -1.4 56.5 19,676 1.3 57.5 11,556 -42.0 51.0
Gross imports 215,039 6.8 11.7 201,717 8.1 8.6 182,658 -15.1 15.9
Intermediate goods 121,572 -8.9 116,079 -27.0 8.8 93,145 -23.4
Capital goods 25,225 7.6 8.8 17,447 4.8 28,960 14.8 9.4
Consumption goods 18,838 -0.9 17,778 1.2 17,084
Total trade 460,476 7.9 440,401 0.0 392,961 -9.3
Trade balance 30,397 36,967 27,645 -14.7

-9.1

Trading partners (% share to total trade)

ASEAN 123,364 -0.5 26.8 115,299 -0.6 26.2 94,021 -23.8 23.9

European Union 41,214 -3.4 9.0 35,881 -11.1 8.1 31,415 -23.8 8.0

China 76,734 -4.1 16.7 70,480 -2.1 16.0 78,681 2.5 20.0

United States 40,069 9.7 8.7 42,064 10.9 9.6 38,345 -4.3 9.8

Japan 31,404 -2.1 6.8 33,325 2.1 7.6 26,303 -16.2 6.7

Others 147,690 -1.0 32.1 143,353 5.2 32.6 124,197 -15.9 31.6

Gross international reserves 425.4 440.1 443.1
RM billion 102.7 101.7 103.4
USD billion
7.3 7.7 8.3
Months of retained imports 1.2 1.1 1.1
Short-term external debt (times)

PRICES Index % change Index % change Index % change
Consumer Price Index (2010=100) 121.3 0.7 121.9 0.9 118.2 -2.6
Producer Price Index (2010=100) 105.1 -1.6 105.3 0.6 -4.9
100

LABOUR FORCE Thousands % change Thousands % change Thousands % change
Labour force 15,598.8 2.1 15,790.1 1.7 15,675.5 0.5
Unemployed 520.6 1.9 546.6 5.8 791.8
Unemployment rate 3.3 3.5 52.0
5.1

Malaysian Economy Second Quarter 2020 Key Data 15

June 2019 May 2020 June 2020

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

MONEY AND BANKING (end period) 431,751 3.7 479,420 10.3 488,233 13.1
Money supply M1 1,899,144 5.0
1,912,074 5.1 2,000,160 4.9 2,014,091 6.1
M2
M3 2,006,708 4.7 2,019,911 5.6
Banking system
Fund 1,980,151 6.7 2,036,122 2.9 2,059,022 4.0
Loan 4.2 2.8 3.3
Loan-to-fund4 ratio 1,636,341 1,675,553 1,689,585
Interest rates (average rates at end of period, %) 82.6 82.3 82.1
3-month interbank
Commercial banks 3.45 - 2.27
Fixed deposits: 3-month
12-month 2.90 1.88 1.86
Savings deposit
Weighted base rate (BR) 3.09 2.03 2.03
Base lending rate
Treasury bills (3-month) 0.99 0.61 0.59
Malaysian Government securities: 1-year
3.68 2.68 2.68
5-year
6.71 5.78 5.75

- 2.07 1.98

3.18 2.06 2.05

3.43 2.48 2.47

July 2019 June 2020 July 2020

Movement of ringgit5 (% annual change) 5.6774 0.4 5.9054 -2.5 5.9683 -4.9
RM per SDR 4.1275 -1.6 4.2800 -3.2 4.2425 -2.7
RM per US dollar 4.6040 3.3 4.8099 -2.1 4.9962 -7.8
RM per euro 3.8015 -3.7 3.9729 -3.1 4.0387 -5.9
RM per 100 Japanese yen 0.5998 -0.7 0.6056 -0.5 0.6063 -1.1
RM per Chinese renminbi 3.0141 -1.1 3.0718 -0.4 3.0852 -2.3
RM per Singapore dollar 0.0295 -4.4 0.0300 -2.3 0.0290 1.7
RM per 100 Indonesian rupiah
1,634.87 1,500.97 1,603.75
Bursa Malaysia 1,725.16 1,579.59 1,703.51
FBM KLCI
Market capitalisation (RM billion)

SOCIAL INDICATORS 2018 2019 2020
Life expectancy at birth: Male (years)
Female (years) 72.3 72.4 72.6
Infant mortality rate (per 1000 live births) 77.2 77.4 77.6
Literacy rate 7.2 n.a. n.a.
Tourist arrivals (million arrivals) 95.9 n.a. n.a.
25.8 26.1 4.26

1 Preliminary.
2 Budget estimate, excluding 2020 Budget measures.
3 For 2020, data is at end-June 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 (-).
6 For the period of January - March 2020.
Source : Department of Statistics, Malaysia; Ministry of Finance, Malaysia; Bank Negara Malaysia; and Tourism Malaysia.