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Sidang Akhbar

Prestasi Ekonomi Suku

11 Mei 2021

Pertama Tahun 2021

Global growth improved further in 1Q 2021

Source: CEIC, national authorities

Global Growth Developments

• Labour market improvement

supporting private consumption

• Continued recovery in manufacturing

activity

• Goods trade improved, particularly

regional exports

• However, reintroduction of

containment measures in some

economies weighed on services

activity, contributing to an uneven

pace of global recovery

1

-4.9

-2.4 -2.4 -2.2-1.2

5.16.5

-1.8

0.2 0.4

-0.7

1.8

8.2

18.3

Euro area Singapore US Indonesia Korea Chinese Taipei PRChina

4Q20 1Q21

Real GDP Growth

Annual change (%)

Malaysia’s GDP recorded a better-than-expected performance of -0.5% in 1Q 2021, despite

imposition of MCO 2.0 during the quarter

Source: Department of Statistics Malaysia

4.7 5.0 4.5 3.7

0.7

-17.2

-2.7 -3.4

-0.5

1Q-19 2Q-19 3Q-19 4Q-19 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21

Real GDP Growth (Quarterly)

Annual change (%)

Annual growth

2020: -5.6%

2019: 4.4%

Key Factors:

Less stringent

containment measures

2

Better external

demand

weighed by…

Growth supported by expansion in exports and improvement in domestic demand

-3.5 -3.6

6.0

Jan-21 Feb-21 Mar-21

Real GDP Growth (Monthly)

Annual change (%)

Dec-20

-2.1%

Labour shortages and

site shutdowns due to

COVID-19 outbreaks

Improvement in all economic sectors, led by manufacturing


3

3.0

6.6

4Q-20 1Q-21

GDP, Annual change (%)

-1.0

0.4

4Q-20 1Q-21


-4.8

-2.3

-6

-5

-4

-3

-2

-1

0

4Q-20 1Q-21


-10.4

-5.0

4Q-20 1Q-21


Manufacturing AgricultureServices Mining Construction

Continued robust

external demand for

E&E production

Expansion in livestock,

forestry & logging, and

other agriculture

subsectors

Improved consumer-

related activities despite

containment measures

Crude oil and natural gas

production improved

Ramp up in commercial

projects nearing completion

and implementation of small-

scale projects

Updated

-13.9

-10.4

4Q-20 1Q-21


2.4

5.9

4Q-20 1Q-21


Private Consumption


Private Investment Public Investment Public Consumption Net exports

Household spending

affected by movement

restrictions albeit to a

smaller extent

Higher capital

expenditure particularly in

the services and

manufacturing sectors

Higher spending on fixed

assets by Federal

Government

Higher spending on

emoluments and supplies

and services

Strong exports and

imports driven by higher

external and domestic

demand

4

-3.5

-1.5

4Q-20 1Q-21


-6.6

1.3

4Q-21 1Q-21


-20.4-18.6

4Q-20 1Q-21


10.0

0.8

4Q-20 1Q-21


Updated

Improvement in domestic demand, particularly private sector expenditure

Current account of the balance of payments registered a surplus of RM12.3 billion or

3.3% of GDP

Goods


Services Primary Income Secondary Income

5

Updated

42.636.6

4Q-20 1Q-21

-7.2-5.7

4Q-20 1Q-21

-14.0 -15.0

4Q-21 1Q-21

-2.7 -3.6

4Q-20 1Q-21

Lower Goods Surplus

Larger Secondary

Income Deficit

• Larger improvement in

in imports amid

pick-up in domestic

demand

• Higher outward

remittances by foreign

workers

RM billon RM billon RM billon RM billon

Larger Services Deficit

• Larger imports of

transport and

construction services

Continued targeted policy support(e.g. PENJANA, 2021 Budget, PERMAI and PEMERKASA)

Stronger external demand driving

improvement in production activities

Malaysia’s economy to continue to benefit from strong external demand and recovery in

domestic conditions

Source: Bank Negara Malaysia

6

Continuation of large infrastructure projects (e.g. ECRL, LRT3, Pan-Borneo Highway and JENDELA)

Recovery in labour market conditions

…supported by stronger external demand and recovery in

domestic conditions

Malaysia remains on track to achieve projected growth of

6.0% – 7.5% in 2021…

-8

-6

-4

-2

0

2

4

6

8

10

2018 2019 2020 2021f

Malaysia’s Real GDP Growth

6.04.3

-5.6

4.8

7.5

Annual change (%)

Pick-up in economic activity, as most sectors

are allowed to operate

Expansion of gross exports is expected to support the overall recovery

The recovery in gross exports growth is

expected to persist…

… in line with the rebound in major trade

partners’ growth…

* Share of 2020 Malaysia’s exports

Source: International Monetary Fund, World Semiconductor Trade Statistics, IC Insights, Department of Statistics Malaysia

… and rising demand for semiconductors

for work-from-home & medical devices

-0.4

-15.1

4.4 5.1

18.2

1Q20 2Q20 3Q20 4Q20 1Q21

Gross Exports Growth

%yoy

NEW

7

6.8

13.0

10.9

19.0

WSTS SemiconductorSales

IC Insights Integrated CircuitSales

2020 2021f%yoy

Industry Forecasts for Global Semiconductor Sales

2.3

-5.4

-3.5

8.4

5.2

6.4

PR China(16.2%* of Malaysia's

exports)

Singapore(14.5%* of Malaysia's

exports)

US(11.1%* of Malaysia's

exports)

2020 2021f

Growth in Malaysia’s Key Trade Partners

%yoy

5

10

11

17

18

Personal computing

Medical devices

Automotive

Other industrialelectronicsapplications

Communication &consumer electronics

Stronger production activity in the manufacturing industry


NEW

8

Higher overall manufacturing production,

driven by the E&E subsector

Malaysia’s E&E subsector is plugged into

key products* in the global value chain

* Non-exhaustive list

Source: AMCHAM survey

4.0

15.0

81.0

Lower

Same

Higher

E&E exports outlook for 2H 2021 versus 2H 2020% of respondents

Survey: Demand for E&E products to

remain robust throughout 2021

Note: Survey of major E&E firms in Malaysia in March – April 2021

Source: BNM RES

E&E products made in Malaysia% breakdown

Industrial production index (IPI)%yoy

2.4 2.0

4.13.5

4.5

12.7

8.1 8.37.6 7.9

10.3

13.8

Oct-

20

Nov-2

0

Dec-2

0

Ja

n-2

1

Fe

b-2

1

Mar-

21

E&E subsector IPI

Manufacturing IPI

Similar MCO 2.0 and 3.0 restrictions allow most economic activity to continue

* The list of prohibited activities is not exhaustive.

Note: Available information as at 10 May 2021.

Source: MKN

9

MCO 2.0 MCO 3.0

Economic activity

Most economic sectors allowed to operate with

the exception of*:

• Spas, reflexology and gyms

• Classes (e.g. tuition, music, dance)

• Pubs and nightclubs

• Theme parks, karaoke and cinemas

Most economic sectors allowed to operate with

the exception of*:

• Spas, reflexology and massage centres

• Sports facilities (e.g. gyms)

• Pubs and nightclubs

• Theme parks, karaoke and cinemas

Labour restrictions 30% capacity for managerial and supervisory positions

Movement restrictionsInterstate and interdistrict travel prohibited with

limits of 2 passengers per car

Interstate and interdistrict travel prohibited with

limits of 3 passengers per car

Operating hours• Restaurants and food stalls: 6am – 8pm

• Convenience stores and pharmacies:

6am – 8pm

• Restaurants and food stalls: 6am – 10pm

• Convenience stores: 6am – 12am

• Pharmacies: 6am – 10pm

Dine-ins Prohibited

Social activities (weddings,

reunions, kenduri)Prohibited

Most economic activity allowed to continue during MCO 3.0, similar with MCO 2.0

Actual data indicates impact due to imposition of MCO 2.0 was much less significant

compared to the MCO 1.0 in 2020

Similar factors are in place in MCO 3.0 to

cushion the impact to economic activities

1 MCO 2.0 data for GDP, IOWRT and Manufacturing IPI refers to the Jan-Feb 2021 average, and 13 Jan – 4 Mar 2021 for Google Mobility. MCO 1.0 data for GDP, IOWRT and Manufacturing IPI refers to the Mar-Apr 2020

average, and 18 Mar – 3 May 2020 for Google Mobility

Source: Department of Statistics Malaysia, Google Mobility Community Reports

Most economic sectors allowed to

operate, subject to SOPs

10

-17-22 -21

-59 -61

-4 -2

4

-20

-26

-70

-60

-50

-40

-30

-20

-10

0

10

Average monthlyGDP

Index of Wholesale &Retail Trade Manufacturing IPI

Google Mobility*(Retail & Grocery)

Google Mobility*(Workplaces)

MCO 1.0

MCO 2.0

Economic and Mobility Indicators during Containment Measures1

% yoy, % change from pre-COVID baseline*

Continued economic activities

through online platforms

The nation is more accustomed

to SOPs

Early signs of recovery in the labour market despite imposition of containment measures


* Tourism-related industries include wholesale retail, administrative and support services,

accommodation and F&B, transportation and storage, entertainment and recreation

Source: Employment Insurance System, Social Security Organisation

Continued decline in jobless claims and increase in job

placement rate indicate better employment conditions

5.0

5.3

4.9

4.7 4.74.6

4.74.8 4.8

4.94.8

4.7

Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

Unemployment rate

3.0 4.88.2 7.5

3.6 2.8 2.8 4.6 3.3 3.2 2.8 2.5 1.8

3.2

5.2

10.49.2

5.64.6 4.6

4.53.5 5.2

3.5 3.3 3.2

Apr-20 May-20Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21

Tourism-related*

Non tourism-related

Jobless claims

Thousands of persons

20

8 6 11

25

43

55

3740

30 3337 40

Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21

Placement rates

40 new job placements

for every 100 jobs lost

11

Employment and unemployment rate improved despite

temporary disruption caused by MCO 2.0 in Jan-21

Share of labour force (%) Number of new job placements for every 100 job losses

14,93314,888

14,990

15,073

15,15415,193 15,207 15,196 15,215 15,237

15,27115,329

Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

Employment levels

Thousands of persons

Households

Fiscal and financial measures mainly benefitting households and businesses in 2021

Targeted policy support remains in place for affected segments to alleviate the economic

impact of the pandemic

BNM’s Fund for SMEs

Danajamin PRIHATIN Guarantee SchemeRM39 bnavailable8

Businesses

Additional Prihatin Special Grant (GKP) RM 0.9 bndisbursed7

1 As at 16 April 2021 (Source: 52nd LAKSANA report)2 As at 4 May 2021 (Source: 52nd LAKSANA report)3 Cumulative up to end-March 2021

(Source: 48th LAKSANA report)4 Total beneficiaries and applications as at 30 April 2021

(Source: EIS, SOCSO)

12

95%approval rate5

1.6 mnapplications5

Targeted Repayment Assistance (TRA) Targeted Repayment Assistance (TRA)

EPF Account 1 Withdrawal (i-Sinar) RM 55.9 bnapproved1

Bantuan Prihatin Rakyat (BPR) RM 4.68 bnallocation2

137,290persons3

Skills & Talent Enhancement

RM 5.2 bnavailable6

5 From 7 August 2020 to 26 March 2021 (Source: BNM)6 As at 23 April (Source: BNM)7 As at February 2021 (Source: 52nd LAKSANA report) 8 As at 6 May 2021 (Source: Danajamin)9 Since inception in 2019

12

2,857,644employees4Wage Subsidy

345,965employers4 Wage Subsidy

Repayment assistance, debt advisory & resolution

> 20,000 SMEs advised9

MyDigital (e.g. RM21 billion under JENDELA)

• RM70.0 billion

• Duration: 2021-2030

• Microsoft: US$1 billion investment over the next five years in

Malaysia to set up data centres (The Edge, 19 Apr 2021)

Investment activity will be supported by key strategic projects

Source: Newsflows

Progress based on work doneKey infrastructure projects

• Infineon Technologies: RM3.25 billion investment in the country

over a span of 10 years until 2029. (NST, 19 Sep 2020)

• Western Digital: Higher investments by RM2.3 billion to

upgrade the hard disc drive manufacturer's production capacity.

(Channel News Asia, 5 Nov 2020)

• SK Nexilis: RM2.3 billion investment to set up its first overseas

production base in Malaysia. (The Star, 26 Jan 2021)

Recent announcements by MNCs to invest in Malaysia

13

ECRL

• RM50.0 billion

• Duration: 2018-2027

LRT3

• RM16.6 billion

• Duration: 2018-2024

MRT2

• RM30.5 billion

• Duration: 2016-2023

51%

89%

21%

Manufacturing: E&E

Manufacturing: Resource-based

Services: Digital-related sector

2021 and beyond: Continued capital spending in major infrastructure projects and investment

intentions by the private sector

Digitalisation continues to gain traction to support the growth of the digital economy

Source: Bank Negara Malaysia,

Malaysia Digital Economy Corporation

14

Updated

Online banking1

transaction volume

1 Financial and non-financial transactions2 Network-based e-money3 Non-exhaustive4 Investment Promotion Agencies

Merchants adopting

e-commerce

E-wallet2

transaction volume

Merchant registrations

for QR payments

209

million

773k

490k

Q1’ 21

3.9

billion

+56%

142

million+48%

293k+164%

244k+101%

Q1’ 20

20202019

...with roll-out of strategic initiatives to catalyse the nation’s

digitalisation agenda3

National

E-Commerce

Strategic

Roadmap 2.0

Digital

Investment

Office

• Targets 875k MSMEs adopting e-

commerce and 84k SMEs exporting

overseas by 2025 (2020: 490k, 27k)

• Fully-digital platform to strengthen

coordination across all IPAs4

• Facilitate digital investments to position

Malaysia as a Digital Hub for ASEAN

Malaysia

Digital Economy

Blueprint

• A strategic roadmap of policy priorities

and initiatives to advance the nation’s

digital economy

Jalinan Digital

Negara

• Upgrades to fixed and mobile broadband

on track and exceeded quarterly targets

• 5G planning and implementation to begin

in 2021 instead of 2023 previously

6.1

billion

Greater adoption of digital solutions by individuals and

businesses…

Source: Economic Planning Unit, Malaysian Communications and Multimedia Commission,

Malaysia Digital Economy Corporation

Risk to 2021 growth remains tilted to the downside, arising primarily from

pandemic-related challenges

▼ Escalation in COVID-19 cases leading to stricter containment measures globally and domestically

▼ Slower-than-expected rollout of vaccines

▼ Uncertainty arising from global oil and commodity price developments

▼ Slower-than-expected progress of major infrastructure projects

▼ Greater financial market volatility

▲ Higher-than-expected global growth

▲ Higher-than-expected production from existing and new manufacturing facilities

▲ Stronger-than-expected impact from policy support

15

Downside

risks

Upside

risks

-2.5

-2

-1.5

-1

-0.5

0

0.5

1

4Q 2020 1Q 2021

Other price-administered items (ppt)

Fuel (ppt)

Price-volatile items (ppt)

Core inflation¹ (ppt)

Annual change in inflation and contribution to headline inflation

Contribution to headline inflation (ppt)

Headline inflation turned positive in 1Q 2021 and is expected to average 2.5% – 4.0% for the year

Higher headline inflation in 2021 due to the cost-push factor of

higher global oil prices, while core inflation to remain subdued

1Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the

estimated direct impact of consumption tax policy changes.

Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates

Temporary spike in 2Q 2021 due to the base effect

from domestic retail fuel prices, and expected to

moderate thereafter as this base effect dissipates

Core inflation to remain subdued, averaging 0.5% -

1.5%, amid continued spare capacity in the economy

Headline inflation increased to 0.5% in 1Q 2021, mainly due to

base effect from fuel prices and lapse in impact from electricity

tariff rebates

0.9

-2.6

-1.4 -1.5

0.5

1.3 1.21.0

0.80.7

-3

-2.5

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

1Q2020

2Q2020

3Q2020

4Q2020

1Q2021

Headline inflation (%)

Core inflation¹ (%)

Annual change (%)

16

Assessments for 2021

2

1

Apr-May

~6.5% – 7.0%e

Q1 Q2 Q3 Q4

June

Below 5%e

e Bank Negara Malaysia estimates

Updated

Monetary policy remains accommodative


• Overnight Policy Rate (OPR) was

maintained at 1.75% at the May MPC

meeting

• Monetary policy in 2021 will remain

accommodative to support the economic

recovery, while ensuring price pressures

remain manageable. The Bank also

remains vigilant against a build-up of

financial imbalances

• Given ongoing uncertainties surrounding

pandemic, monetary policy going forward

will continue to be determined by new

data and information

May-21 1.75%

1.0

1.5

2.0

2.5

3.0

3.5

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Overnight Policy Rate (OPR)

%

17

Domestic financial markets were affected by external and domestic factors

*Change in exchange rate against the US dollar from 1 April to 7 May 2021

Source: Bank Negara Malaysia, Reuters

*Regional countries include Indonesia, the Philippines, PR China, Singapore, South Korea and

Thailand. YTD as at 7 May 2021.

Source: Bank Negara Malaysia, Bloomberg

Broad USD strengthening amid the rise in US Treasury yields MGS yields increased amid the rise in US Treasury yields,

while equities declined due mainly to domestic uncertainties

surrounding COVID-19 developments

-66.2

61.9

-18.9-60.8

70.3

-17.5

-100.0

-40.0

20.0

80.0

2020 1Q21 Since 1 April

Malaysia Regional Avg

Movement of 10-Year Sovereign Bond Yields

bps

2.4

-3.3

0.91.82.8

0.2

-5

5

2020 1Q21 Since 1 April

Malaysia Regional Avg

Movement of Equity Prices

%

18

Updated

Movement of Exchange Rate against the US dollar

0.5

1.0

2.0

1.0

1.1

2.2

1.3

1.6

-4.6

-4.1

-3.5

-3.5

-1.9

-1.6

-1.1

-0.5

-6.0 -3.0 0.0 3.0

THB

KRW

IDR

MYR

SGD

TWD

PHP

CNY

1Q 21 Since 1 April*

Continued expansion in net financing

Net financing expanded by 4.7% during

the quarter, supported mainly by loans

Higher business loan disbursements

and repayments, including in the SME

segment

Note: Data refers to loans from banking system and development financial institutions (DFIs), *Excludes issuances by Cagamas and non-residents

Numbers may not add up due to rounding


Demand for household loan demand

remained forthcoming

2.73.2

1.71.5

4.44.7

4Q 2020 1Q 2021

Outstanding corporate bonds*

Outstanding loans

Net financing

Net Financing*

Annual change, % / Cont. to growth, ppt

Household Loan Application for Residential

Property and Passenger Car

RM bn

19

197 204228

196 207221

2017 - 19Quarterly average

4Q 2020 1Q 2021

Disbursements Repayments

Business Loan Disbursements and Repayments

RM bn

SME Loan Disbursements and Repayments

52

42

87

80 81

16

10

2422 21

1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021

Passenger Car

2017-19 quarterly average: RM60bn

2017-19 quarterly average: RM17bn

Residential Property

75 7378

74 72 74

2017 - 19Quarterly average

4Q 2020 1Q 2021


Financing to SME expanded by 10%1, complemented by other schemes and a supportive

financing ecosystem

SME financing disbursements remained conducive in 1Q

2021, with steady repayments

Comprehensive financing ecosystem will continue to provide

support to SMEs in all economic sectors

1 Refers to the annual growth of outstanding loans in 1Q 2021

Note: Banking system and development financial institutions (DFI)


2 As at 28 April 20213 Since inception in 20184 Since inception in 2019

RM bn

20

RM5.2 bil2 available BNM’s Fund

for SMEs

Guarantee schemes

Financing referral

Repayment assistance,

debt advisory &

resolution

Capacity building

& advisory

Financing schemes

RM340 mil approved

for 3.5k SMEs3

CGC o/s guarantee

+25% in 2020

> 20k SMEs advised

by MyKNP4

RM1.0 bil disbursed in 1Q21

SME Financing Indicators

77.6(+22% yoy) 73.7

(+12% yoy)

0

10

20

30

40

50

60

70

80

90


3Q 2020 4Q 2020 1Q 2021 2017-19 Qtrly Average

Banks continue to build up loan loss

provisions albeit at a slower pace…

Provisions(RM billion)

1.6

2.4

3.5

2.1

1.41.5

1.71.8

0

2

3

5

6

Jun-20 Sep-20 Dec-20 Mar-21

QoQ Change Total (as % of total loans)

Banking system remains resilient and well-positioned to support ongoing economic

recovery

…amid higher impairments and elevated

loans with increased credit risk…

Note:

1. Refers to loans that have exhibited deterioration in credit risk, for which banks are required to set aside provisions based on lifetime expected losses


Healthy capital and liquidity buffers will

continue to support financial

intermediation activities

Gross Impaired Loans and Stage 2 Loans1 Ratios (%)

Total Capital Ratio and Liquidity Coverage Ratio (%)

1.44

1.37

1.561.588.4 7.9

10.2 10.0

5

6

7

8

9

10

11

1.3

1.4

1.5

1.6

1.7

Jun-20 Sep-20 Dec-20 Mar-21

Impaired Loans MFRS 9* Stage 2 Loans

* MFRS 9 - Malaysian Financial Reporting Standard 9

Total Capital Ratio

Dec-20: 18.8

Sep-20: 18.5

18.1

Liquidity Coverage Ratio

Dec-20: 148.2

Sep-20: 151.5

145.1

21

Malaysia’s GDP recorded better growth in 1Q 2021, with a smaller

decline of 0.5%

Most economic activity allowed to continue during MCO 3.0, similar with MCO 2.0

Targeted policy support and continuation of large public projects to mitigate impact of

re-imposition of containment measures

Strong external demand to provide main support to growth, amidst improving

domestic conditions

In a nutshell…

22

UpdatedUpdated

Malaysia remains on track to register growth within the range of 6.0 – 7.5% for 2021

End of Presentation

Additional Information

Malaysian GDP growth improved to -0.5% in 1Q 2021

Annual change in GDP growth by component

1 Numbers do not add up due to rounding and exclusion of import duties component


Add. Info

Real GDP

(% YoY)

Share1 %

(2020)

2020 2021

1Q 4Q 1Q

Services 57.7 3.1 -4.8 -2.3

Manufacturing 22.9 1.4 3.0 6.6

Agriculture 7.4 -8.6 -1.0 0.4

Mining and Quarrying 6.8 -2.9 -10.4 -5.0

Construction 4.0 -7.9 -13.9 -10.4

Real GDP 100.0 0.7 -3.4 -0.5

Real GDP

(% YoY)

Share, %

(2020)

2020 2021

1Q 4Q 1Q

Domestic demand

(excluding stocks)93.8 3.7 -4.5 -1.0

Private Sector 75.1 4.9 -4.0 -0.9

Consumption 59.5 6.7 -3.5 -1.5

Investment 15.7 -1.1 -6.6 1.3

Public Sector 18.6 -1.8 -5.7 -1.5

Consumption 13.4 4.9 2.4 5.9

Investment 5.2 -14.4 -20.4 -18.6

Net exports of goods and

services6.5 -36.8 10.0 0.8

Exports 61.5 -7.2 -2.1 11.9

Imports 55.0 -2.7 -3.3 13.0

Change in stocks, RM bn -0.3 -3.0 -0.9 -1.6

Real GDP 100.0 0.7 -3.4 -0.5

23

Malaysian GDP growth improved to -0.5% in 1Q 2021

Percentage point contribution to GDP growth by component

1 Numbers do not add up due to rounding and exclusion of import duties component


Add. Info

Real GDP

(Ppt contribution, %)

Share1 %

(2020)

2020 2021

1Q 4Q 1Q

Services 57.7 1.8 -2.8 -1.3

Manufacturing 22.9 0.3 0.7 1.5

Agriculture 7.4 -0.6 -0.1 0.0

Mining and Quarrying 6.8 -0.2 -0.7 -0.4

Construction 4.0 -0.4 -0.6 -0.5

Real GDP 100.0 0.7 -3.4 -0.5

24

Real GDP

(Ppt contribution, %)

Share, %

(2020)

2020 2021

1Q 4Q 1Q

Domestic demand

(excluding stocks)93.8 3.4 -4.2 -0.9

Private Sector 75.1 3.7 -2.9 -0.7

Consumption 59.5 3.9 -2.0 -0.9

Investment 15.7 -0.2 -0.9 0.2

Public Sector 18.6 -0.3 -1.3 -0.2

Consumption 13.4 0.6 0.4 0.7

Investment 5.2 -0.9 -1.7 -0.9

Net exports of goods and

services6.5 -3.2 0.6 0.0

Exports 61.5 -4.7 -1.3 7.2

Imports 55.0 -1.5 -1.9 7.1

Change in stocks -0.3 0.5 0.2 0.4

Real GDP 100.0 0.7 -3.4 -0.5

Add. Info

25

Financial account registered a net inflow in 1Q 2021

This was driven by inflows in all major accounts

*As per the IMF’s BPM5 classifications (i.e. directional basis)

Note: Numbers may not add up due to rounding

Source: Department of Statistics Malaysia; and Bank Negara Malaysia

RM billion

2019 2020 2021

Year 3Q 4Q Year 1Q

Direct Investment 6.6 -2.2 1.6 2.8 1.4

Direct Investment Abroad (DIA)* -25.8 -1.8 -5.2 -11.9 -7.8

Foreign Direct Investment (FDI)* 32.4 -0.3 6.8 14.6 9.1

Portfolio Investment -32.4 -20.3 -7.1 -48.2 0.4

Residents -46.9 -20.8 -19.9 -59.3 -14.2

Non-residents 14.5 0.5 12.8 11.1 14.6

Financial Derivatives -0.5 -0.5 -0.9 0.4 0.3

Other Investment -11.7 -8.1 -3.7 -31.1 13.9

Financial Account Balance -38.0 -31.1 -10.2 -76.2 16.0

Higher FDI inflows amid larger DIA

outflows

Turnaround in portfolio investment

Significant other investment inflows

Financial Account by Component

Add. Info

26

Higher FDI net inflows in 1Q 2021

This was driven by larger reinvestment of earnings and sustained equity injections into Malaysia

Larger reinvestment of earnings

+RM4.1 billion in 1Q-21 (4Q-20: -RM1.9 billion)

Continued equity injections

+RM4.4 billion in 1Q-21 (4Q-20: +RM4.3 billion)

Lower debt inflows

+RM0.7 billion in 1Q-21 (4Q-20: +RM4.3 billion)

Source: Department of Statistics Malaysia, Bank Negara Malaysia

3.82.7

6.4 5.7

2.5

-0.3

6.89.1

-15

-10

-5

0

5

10

15

2Q-19 3Q-19 4Q-19 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21

Equity and investment fund shares Reinvestment of earnings

Debt instruments FDI

Quarterly Net Foreign Direct Investment (FDI)

RM billion

Malaysia’s external debt remains manageable

* Consist of currency and deposit placements, and portfolio investments

** Consist of short-term financial institutions’ deposits, interbank borrowings and loans from unrelated counterparties


Banks are resilient to face potential

external shocks…

…while corporates’ external debt is

mainly subject to prudential requirements

64.0

111.0

125.9

60.2

19.6

13.0

Corporate External Debt Breakdown by Instrument

(as at end-1Q 2021)

RM billion

Total: RM393.8 billion

Bonds and

notes

Loans

Other debt liabilities

Intragroup

loans

Trade

credits

On

concessionary

and flexible

terms

Subject to

prudential

requirements

NR holdings of domestic

debt securities

Backed by

export earnings

140.8

74.2

Liquid externalassets

Externaldebt-at-risk

Banks’ Liquid External Assets* and External Debt-

at-Risk**

RM billion

4.6

3.5

0

2

4

6

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Au

g

Se

p

Oct

Nov

Dec

Jan

Feb

Mar

2020 2021

FX USD

Banks’ FX and USD Net Open Positions as

Percentage of Capital

% of total capital

Add. Info

…and Government’s external debt mainly

in ringgit

23.4

222.2

Government External Debt Breakdown by

Currency (as at end-1Q 2021)RM billion

Total: RM245.6 billion

Foreign currency-denominated

Ringgit-denominated

Not affected by ringgit exchange rate

fluctuations

Comprise medium- and long-term loans and

bonds and notes, suggesting limited rollover risks

27

Banks continue to extend support to borrowers in need of repayment assistance

While impact of MCO 2.0 is less severe, distressed borrowers

continue to approach banks for repayment assistance albeit at

a more moderate pace

Note:

1. Data from April 2020 to 11 April 2021

2. Refers to individual repayments excluding credit cards


Repayments remained close to 1Q 2020

levels, indicating most borrowers able to

sustain resumption of payments

1.6 millionR&R applications received

to date

with 95% approval rate

101,326

29,250for AKPK’s Debt

Management

Programme

Applications for AKPK

counselling

Loan Repayments

(RM billion)

Households2

18.3

19.0

1Q20monthlyaverage

Mar-21 104%Of levels seen in

1Q 2020

Statistics on Assistance Measures1

(Year-to-date)

Loans under Repayment Assistance

(%)

SMEs

21.5

26.0

0.0 10.0 20.0 30.0

1Q20monthlyaverage

Mar-21 121%Of levels seen in

1Q 2020

8.911.4

Dec-20 Mar-21

9.5 10.5

Dec-20 Mar-21

11.113.9

1

6

11

16

21

Dec-20 Mar-21

16.8 16.6

Dec-20 Mar-21

Share of accounts

Share of loan value

Households Businesses

Add. Info

28

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