9 Jun - 2 min read
Malaysia’s economy is expected to begin recovery from the end of this year and return to growth in 2021, said the World Bank.
World Bank country manager for Malaysia Firas Raad said that the nation needs to continue with its encouraging and effective public health measures while reverting the economy to its pre-Covid-19 state.
“The country first needs to continue its effective public health measures to ensure no second wave or the return of the Covid-19 virus,” said Firas. “Aside from that, (it must) continue supporting vulnerable households and focus on the firms that need support and recovery, especially the small and medium enterprises (SMEs), and then start to think about the medium-term reform agendas.”
Firas said that pro-growth policies, together with incentives to push the private sector, were crucial to helping the nation recover from the economic downturn. He also added that Malaysia should continue its reform efforts surrounding governance, the regulatory environment and competition of economic sectors, and education in order to achieve its goal of becoming a high-income nation.
“For Malaysia to cross into high-income country status, it will have to boost productivity growth, and that will only come with great investment in human capital,” elaborated Firas.
Firas revealed that the World Bank is currently reviewing the economic impact of Covid-19 before deciding whether to revise the country’s 2020 GDP growth target. Earlier in April, the World Bank changed Malaysia’s 2020 GDP growth forecast from 4.5% to -0.1% after taking Covid-19 factors into consideration.
With the transition from the conditional movement control order (CMCO) to the recovery movement control order (RMCO) taking place, the majority of businesses in Malaysia are allowed to reopen subject to strict standard operating procedures. The Malaysian government has also launched an economic recovery plan dubbed PENJANA, which consists of a set of strategic initiatives aimed at stimulating the economy towards recovery.
(Source: Malay Mail)
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