A worker is pictured at her station at a factory in Batu Maung November 22, 2019. — Picture by Sayuti Zainudin
“This is expected to spur higher domestic demand and businesses to operate at a much higher capacity,” it said in a research note today. “We may have to downgrade our Q2 and 2020 growth forecast if factory output remains weaker than expected in May and June in spite of the relaxation of the MCO. For now, we maintain our GDP growth projection of negative 2.9 per cent for 2020,” it added.
It said growth in the manufacturing sector would remain in a declining mode in the second half of the year and production would begin to stabilise from its low point only when exports improve in late 2020. Going forward, it said healthy global semiconductor sales would be supportive of the production of Malaysia’s electrical and electronics products and the country’s exports in general.