# Malaysia macro update – It’s downtime | articles | ING THINK

> ING projects Malaysia's 2020 GDP to be the worst since the 1998 Asian crisis, with a 2Q contraction above 8% and about 4% for the year. Inflation is forecast at -2.5% for 2020, and an additional 100 basis point rate cut is expected. Weak global demand and low commodity prices are weighing on the economy.

- Date: 2020-05-27 · published 2020-05-27T12:00:00.000Z
- Category: macro · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/53394-malaysia-macro-update-it-s-downtime-articles-ing-think
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

Weak Malaysian growth and low commodity prices reduce palm oil demand from domestic industry and point to a softer ringgit, pressuring palm oil prices.

## Read by commodity

- USDMYR: bullish ▲
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2018-08-17 | [Malaysia: A huge downside GDP miss in the second quarter \| articles \| ING THINK](https://feedsoft.ai/events/63777-malaysia-a-huge-downside-gdp-miss-in-the-second-quarter-articles-ing-think.md) | +0.1% | -0.3% |
| PALMOIL | 2023-01-09 | [Indonesia to miss boost from commodity boom as Jokowi’s term winds down \| articles \| ING THINK](https://feedsoft.ai/events/38103-indonesia-to-miss-boost-from-commodity-boom-as-jokowi-s-term-winds-down.md) | -2.4% | -2.5% |
| PALMOIL | 2016-11-21 | [Malaysia’s ringgit may keep tumbling amid the market's Trump tantrum](https://feedsoft.ai/events/74107-malaysia-s-ringgit-may-keep-tumbling-amid-the-market-s-trump-tantrum.md) | +1.4% | +6.6% |
| PALMOIL | 2018-12-24 | [MARC positive on Malaysia’s sovereign rating](https://feedsoft.ai/events/61802-marc-positive-on-malaysia-s-sovereign-rating.md) | -0.4% | +7.2% |
| PALMOIL | 2024-12-19 | [Ringgit declines to RM4.50 against greenback over US rate cuts \| Malaysiakini](https://feedsoft.ai/events/27221-ringgit-declines-to-rm4-50-against-greenback-over-us-rate-cuts-malaysiakini.md) | -0.1% | -11.2% |

## Sources

- think.ing.com: https://think.ing.com/articles/malaysia-macro-update-its-the-downtime/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.