KUALA LUMPUR, May 13 (Bernama) — Malaysia's economy grew moderately at 0.7 per cent in the first quarter of 2020 from 4.5 per cent in the same quarter last year, as gross domestic product growth was affected by the COVID-19 pandemic and the implementation of the Movement Control Order (MCO).

Bank Negara Malaysia said after a steady expansion in the first two months of the quarter, economic activity came to a sharp downshift with the implementation of the MCO on March 18.

"Movement restrictions including international and domestic travel restrictions, limited work and operating hours and mandatory social distancing significantly curtailed economic activity.

"Production was only permitted for essential goods and services and the industries integral to their supply chains. Labor-intensive and consumer-oriented sectors were also impacted," the central bank said in a statement, issued in conjunction with the release of Malaysia’s Q1 2020 GDP performance today.