It was the worst figure since the economy shrank in 2009 during the global financial crisis, but strong domestic consumption provided support and helped defy gloomy forecasts of a one percent contraction.
However analysts expect the full effects of the virus to be felt in the second quarter, as Malaysia only went into lockdown to halt the spread of COVID-19 in mid-March. The curbs, which saw people ordered to stay home and most businesses to close, have cost the economy at least 63 billion ringgit ($14.5 billion), according to Prime Minister Muhyiddin Yassin. Restrictions were eased at the start of May as Malaysia's relatively minor outbreak slowed, although some will remain in place until at least next month.
"The data surprised on the upside in the end," said Wellian Wiranto, OCBC Bank economist. "It appears that we had all underestimated the strength of the consumers to power on, come what may."