ASEAN KEY DESTINATIONS
Malaysia GDP growth slows to 4% in Q2
MALAYSIA’S economic growth eased in the second quarter, the central bank said yesterday, attributing the slowdown to a decline in exports amid subdued global demand.
The economy grew 4.0 per cent year-on-year in the April to June period, compared with 4.2 per cent in the first quarter and 4.9 per cent in the second quarter of 2015.
It is Malaysia’s slowest rate of expansion since a 1.1 per cent contraction in the third quarter of 2009 during the global financial crisis.
“Despite the stronger expansion in domestic demand, growth was weighed down by the continued decline in net exports,” Bank Negara said.
Energy-exporting Malaysia has the third-largest economy in Southeast Asia, but has been grappling with falling oil prices and weak overseas demand – denting revenues and putting severe pressure on the ringgit.
The country has also been rocked by a massive financial scandal amid allegations that billions of dollars were stolen from a state investment fund founded and overseen by the Prime Minister.
In July, Malaysia unexpectedly cut interest rates for the first time in seven years.
The decision to slash borrowing costs by 25 basis points to 3.00 per cent follows similar moves by Singapore and Indonesia and comes as major central banks around the world look to ease monetary policy to kickstart growth.
Governor Muhammad Ibrahim told reporters that the ringgit would continue to face volatility given global uncertainties, but Malaysia’s “sound economic fundamentals” would provide medium-term support.
hinery and transport equipment, valued at $109.6 million, accounted for most of Brunei’s imports. This was followed by manufactured goods, $66.4 million and food, $53.8 million.
More than 20 per cent of the country’s imports came from Malaysia. Other main sources of imports include Singapore, China and the US.
The trade balance for the month of June was recorded at $166.5 million.
Brunei’s IMTS adopts the General System for recording trade statistics which cover imports, domestic exports and re-exports. The full report is available at www.depd.gov.bn.
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Indonesia to launch 13th economic package this month
Coordinating Economic Minister Darmin Nasution said on Wednesday that the government would release its 13th economic policy package in August, adding that the draft had been completed.
Darmin said the 13th package was largely an extension of the previous one, but would expand its focus beyond industry. The 12th package focused on small and medium enterprises.
"We are just waiting to schedule a meeting with the president," Darmin told reporters at his office. He refused to give the exact date the new policy package would come into effect.
The ministry team must meet with President Joko "Jokowi" Widodo one more time to finalize the details, Darmin said.