Malaysia economy down 6.2% in Q1

The Malaysian economy contracted 6.2% on-year in the first quarter of 2009, the worst since the Asian financial crisis, as manufacturing output shrank sharply as exports and industrial production fell.

Bank Negara said on May 27 that manufacturing contracted 17.6%, mining fell 5.2% while agriculture saw a 4.3% decline. Services also showed a decline of 0.1% but construction rose just 0.6%.

According to economists, the contraction was worse than expected. In the fourth quarter of 2008, the economy grew at only 0.1%.

The central bank said the sharp contraction in the first quarter was due to a significant deterioration in external demand, following the deepening recession in advanced economies.