KUALA LUMPUR – The Malaysian economy had recorded the lowest growth of the decade with 4.3 percent in 2019.
The Gross Domestic Product (GDP) for the third quarter in 2019 rose to 3.6 percent, the lowest position in 41 months.
The Governor of Bank Negara Malaysia (BNM), Datuk Nor Shamsiah Yunus said, the growth was affected by supply disruptions in the commodities sector, during the fourth quarter of 2019.
The palm oil production reduced by 16.9 percent, while natural gas reduced by 2.1 percent during the quarter.
Crude oil production during Q4 2019 had a better performance where it only dropped 5 percent compared to 12.8 percent during the previous quarter.
“The domestic economy was affected by the supply disruptions in the commodities sector during the fourth quarter of 2019.
“The steep reduction of palm oil during the final quarter of 2019 was due to the drought season.
“In addition, the drought which happened early last year also caused problem with fertilisation.
“If the national economy was not disrupted by the supply, the GDP of Malaysia could grow up to 4.3 percent during the fourth quarter and 4.7 percent for the whole 2019,” she said during the announcement on the Economic and Financial Developments in Malaysia for the Fourth Quarter of 2019 at the central bank today.
However, according to Nor Shamsiah, the private sector activity is strong and would continue to drive the growth of national economy.
On the economy performance for 2020, the Governor said that there are still many uncertainties due to the impact of the coronavirus outbreak.
The exact figure will be announced during the Bank Negara Annual Report on 25 March. -MalaysiaGazette