As a highly open economy, Malaysia was, however, not insulated from the global economic
downturn. The deterioration in global economic conditions and the major correction in
commodity prices in the second half of 2008 saw Malaysia’s GDP moderate to 0.1% in the
final quarter of 2008. The domestic economy experienced the full impact of the global
recession in the first quarter of 2009, declining by 6.2%. The concerted and pre-emptive
measures taken by the Bank Negara Malaysia (BNM), through the accelerated
implementation of fiscal stimulus measures, supported by the easing of monetary policy and
the introduction of comprehensive measures to sustain access to financing and mitigate any
impact of the heightened risk aversion among banks contributed towards stabilising the
domestic economy in the second quarter and its subsequent recovery in the second half of
the year. The economy resumed its growth momentum in the fourth quarter, growing by
4.4%. This resulted in the economy contracting by only 1.7% in 2009. Continued expansion
in domestic demand and increased external demand led to the strong growth of 10.1% in the
first quarter of 2010.
As a highly open economy, Malaysia was, however, not insulated from the global economicdownturn. The deterioration in global economic conditions and the major correction incommodity prices in the second half of 2008 saw Malaysia’s GDP moderate to 0.1% in thefinal quarter of 2008. The domestic economy experienced the full impact of the globalrecession in the first quarter of 2009, declining by 6.2%. The concerted and pre-emptivemeasures taken by the Bank Negara Malaysia (BNM), through the acceleratedimplementation of fiscal stimulus measures, supported by the easing of monetary policy andthe introduction of comprehensive measures to sustain access to financing and mitigate anyimpact of the heightened risk aversion among banks contributed towards stabilising thedomestic economy in the second quarter and its subsequent recovery in the second half ofthe year. The economy resumed its growth momentum in the fourth quarter, growing by4.4%. This resulted in the economy contracting by only 1.7% in 2009. Continued expansionin domestic demand and increased external demand led to the strong growth of 10.1% in thefirst quarter of 2010.
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