Malaysia's economy into first contraction since global financial crisis

Bank Negara Malaysia Governor Nor Shamsiah Mohd Yunus expected economic activity to gradually pick up in the second half after the government eased its coroanvirus curbs, helped by a global growth recovery and domestic policy support.

The government has rolled out stimulus packages totalling nearly 270 billion ringgit ($64.39 billion) this year to help the public and businesses weather the pandemic..

The BNM have slashed interest rates by 125 basis points to 1.75% so far this year, with analysts expecting at least one more cut in 2020.

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"I am cautiously optimistic that the worst is behind us," said Nor Shamsiah, forecasting 5.5%-8% growth in 2021.

But Nor Shamsiah said there is room for more targeted policy measures in case of a second outbreak.

"This includes our monetary policy, our liquidity measures and financial measures. Likewise, the government will retain some fiscal space to provide stimulus and support for households and businesses if the need arises," Nor Shamsiah said.