Following a sharper than expected contraction in the second quarter of 2020 (2Q20), the World Bank has lowered Malaysia’s economic growth forecast this year to a contraction of 4.9 percent, down from an early estimate of -3.1 percent.

In a statement today, the World Bank said the change in the forecast reflected the heightened uncertainty surrounding the start and speed of global economic recovery, which would weigh on investment decisions and external demand.

In addition, the elevated unemployment rate and other weaknesses in the labour market would continue to weigh on private...