On a year-on-year basis, GDP growth is still negative despite improving from -17.1% in Q2 to -2.7% in Q3.

However, on a quarter-on-quarter seasonally-adjusted basis, the economy turned
around to register an expansion of 18.2%, which shows it is back on track for recovery, he said at a press conference at Bank Negara Malaysia (BNM).

The record decline in Q2 was attributed to restrictions on movement to contain the spread of Covid-19.

Bank Negara governor Nor Shamsiah Mohd Yunus attributed the improved GDP growth figures to improving external demand, the easing of movement restrictions and stimulus measures.

She said the current trends support their projection that the economy will recover to 2019 levels next year, buoyed by encouraging consumption numbers and the recovery of local industries like agriculture and manufacturing.

Manufacturing grew 3.3% during Q3 over the same period last year, carried by an increase in external demand.

While the services, mining and construction sectors continued to record negative year-on-year growth, they were much improved from the numbers seen last quarter, indicating a steady recovery, BNM said.

It also noted that there are a number of available assistance programmes to assist small- and medium-sized enterprises and households in need, such as the extension of the loan moratorium, the simplified Bantuan Prihatin Nasional process, and targeted assistance programmes for service and high-tech businesses and the self-employed.