Malaysia’s economy will remain resilient despite the re-imposition of the Movement Control Order (MCO) in six states and the nationwide state of emergency, thanks to labour productivity which drives economic growth. Juwai IQI Global chief economist Shan Saeed said the country could survive despite the tempestuous global economy, on the back of the government’s continuous fiscal and monetary policy levers to support its growth trajectory.
“Nonetheless, in my opinion, the government should analyse the business and market pace to gauge the momentum before announcing any fiscal stimulus for the economy. “However, small and medium enterprises need lots of support from the government as small firms are finding it tough to manage their cash flows,” he told Bernama. Shan said that right now, markets are in the midst of an interplay between epidemiology and economics.
“It’s a very delicate line between health care and business. The government is trying its best to keep the momentum going for the economy at the macro level,” he opined.
Meanwhile, he noted that Juwai IQI’s projection for Malaysia’s gross domestic product growth remained the same, at three to four per cent this year, with ringgit to trade between RM3.67 and RM4.10 against the US dollar.
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