Malaysia, Philippines among Southeast Asian economies struggling amid coronavirus resurgence

Quarterly figures from the Philippines and Malaysia on Tuesday add to recent weaker signals from Indonesia and Thailand. All four nations have had virus surges

Among the region’s biggest economies, only Singapore and Vietnam have shown year-on-year expansions in the first quarter

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A medical worker inoculates a woman with the Sinovac Covid-19 vaccine at a drive-through vaccination site in Manila on Friday. Photo: AP

Published: 4:08pm, 11 May 2021Updated: 4:22pm, 11 May 2021

The Philippine and Malaysian economies continued contracting in the first three months of the year, adding to signs that some of Southeast Asia’s biggest nations are struggling amid a resurgence in coronavirus cases.

The quarterly figures released on Tuesday – which came in below all forecasts for the Philippines – add to recent weaker signals from top regional economies Indonesia and Thailand.

All four countries have faced a surge of Covid-19 cases in recent weeks, part of the broader challenge across Asia’s developing economies to stem a renewed outbreak, particularly in India.

Police check vehicles at a roadblock on the outskirts of Kuala Lumpur on Tuesday after a new movement control order was announced. Photo: AP

Among Southeast Asia’s biggest economies, only Singapore and Vietnam, which have been able to mostly contain the virus, have shown year-on-year expansions in the first quarter.

Philippine gross domestic product contracted 4.2 per cent, compared to the median 3.2 per cent drop expected in a Bloomberg survey. Malaysia shrank 0.5 per cent compared with a 0.9 per cent estimate. Indonesia last week reported a 0.74 per cent contraction, against an expected decline of 0.65 per cent. Thailand, which is expected to show a contraction when it reports first quarter figures next week, recently lowered its full-year outlook, with the finance ministry citing poor tourism activity.