Containment measures to control the spread of the COVID-19 pandemic negatively related to economic performance. The paper examines the impact of COVID-19 on Malaysia GDP and key macroeconomic variables using quarterly data from quarter 1 2020 to quarter 2 2021. The results show that COVID-19 has a significant and detrimental impact on the Malaysian economy. Recommended policy measures are focused on accelerating the vaccination program to effectively contain the pandemic and drive economic recovery, as well as comprehensive and targeted fiscal policies to support COVID-19 recovery efforts.