THE Malaysian economy is showing signs of recovery, in line with the resumption of economic activities in May, Deputy Finance Minister II Mohd Shahar Abdullah said in the Dewan Negara today.

He said this is evident in the month-on-month contraction of the gross domestic product (GDP), which has been narrowing since April.

“If we observe carefully, GDP contracted from 28.6% in April to 19.5% in May and went on to record an even smaller contraction of 3.2% in June.

“The performance shows that there has been economic recovery in line with the reopening of the economic sector in May and this is expected to continue into the second half of 2020,” Shahar said.

He said the economic indicators have also shown that the economy was in a good recovery phase in July.

These include the year-on-year (y-o-y) growth of 3.1% in exports, 27% growth in passenger vehicle sales, 44.8% growth in commercial vehicles and a 7.4% increase in cars on tolled roads.

In addition to that, the 215.8% growth in domestic passenger traffic is another indicator.

Shahar was responding to a question by Senator Husain Awang on the efforts taken by the government to increase GDP growth in the fourth quarter. – September 9, 2020.