The Threat of Recession: Malaysia’s Economy could decline due to COVID-19 Pandemic

Last updated on May 7th, 2021 at 08:53 am

It’s only when enough individuals become immune to the disease to stop transmission, either through a vaccine or direct contact, can COVID-19’s danger to lives and livelihoods solve fully. Before then, policymakers seeking to revive their economies will have public-health programs powerful enough to identify and respond to incidents.

But it’s a different face since Malaysia’s economy in 2020 could decline more than initially expected as a result of prolonged movement curbs placed to stop a new coronavirus epidemic. In April, The central bank projected gross domestic product (GDP) growth of between -2% and 0.5% this year.

Minister of Finance Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the recession not only impacted the gross domestic product (GDP) of the country, but also led to an spike in unemployment.

He added that the important thing here now is how quickly they can handle this (Covid-19) pandemic crisis. If they can handle the problem quickly, the economy and growth of our nation will also recover quickly.

Thought they are not sure when they will come up with the Covid-19 vaccine, but they can help manage the situation and help the economy recover with the help of the citizens, the government and everyone involved.

Malaysia, which unveiled a relief package worth 250 billion ringgit (US$ 5.8 billion) to help soften the outbreak’s economic blow, will also announce a roadmap for economic recovery later this month.

The Malaysian authorities defended efforts to relax lockout measures for coronavirus next week, even as the number of new infections soared to a two-week peak. Most businesses will reopen though schools, cinemas and nightclubs, along with the country’s borders, will stay closed. There will also be a ban on the public assemblies.

Security minister Ismail Sabri shared that Malaysia is not hurrying to ease the curbs, stressing that reopening enterprises would have to introduce hygiene and social distancing measures.

It’s unthinkable to go through this state of economy but the government will surely survive and bounce back.