For Malaysians who may have been a little antsy about the current economic situation locally as a result of Covid-19, it would seem that we can all breathe a slight sigh of relief. Well, at least based on the World Bank’s assessment of Malaysia’s current economic landscape!
This little bit of prospective good news was reported by World Bank country manager to Malaysia, Firas Raad, who said that current pro-growth economic policies coupled with public health measures and incentives for the public sector will help our country rebound from the economic slowdown that came as a result from the Covid-19 pandemic.
Previously, Prime Minister Tan Sri Muhyiddin Yassin has mentioned that the national economic standstill as a result of the two-month MCO period has costed the nation RM2.4 billion for every day that businesses remain shuttered.
“The country first needs to continue its effective public health measures to ensure no second wave or the return of the (Covid-19) virus.
“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,” he said.
But to truly enter the space comprising of high-income nations, Malaysia still needs to look into reforming a few different areas, including education, competition of economic sectors, governance and regulation.
As of now, the World Bank is still deliberating on the extent of Covid-19’s impact on our local economy, and whether they should review our Gross Domestic Product growth target. Prior to this, The World Bank slashed our projected economic growth in April from 4.5% to -0.1% as a result of Covid-19, reports Malay Mail.
What do you guys think of this development?
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