The rate is lower than the 4.4% posted in the third quarter of 2019, and 4.9% in 2Q 2019.

The 13 economists whose forecasts ranged between 3.4% to 4.6% blamed the lower growth on weaker private consumption and external demand.

Reuters quoted economist Gareth Leather as saying that Malaysia’s economic growth in the 4Q was likely weighed down by weakness in industrial production and exports, and slowing retail sales.

Standard Chartered in a research note meanwhile said that 4Q growth could have been boosted in December from manufacturing activity and potential exports ahead of Chinese New Year.

“After surprising markets with a pre-emptive 25 bp cut at its January meeting, the Monetary Policy Committee’s (MPC’s) policy statement noted that delays in project implementation could pose a downside risk to growth,” Standard Chartered said.

But it also said that a preemptive interest rate cut by Bank Negara last month shows the economy will likely face difficulty in meeting growth targets.

Putrajaya has maintained a 4.8% GDP growth target this year.

The government is expected to announce an economic stimulus package to help sectors affected by the coronavirus, which has so far claimed over 1,000 lives in China with hundreds hospitalised globally.