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Another Economic Setback for Malaysia

With Malaysia’s Movement Control Order (MCO) 3.0 in its second week, the country’s economic recovery is expected to stall due to the two-week lockdown.

In March, the Ministry of Finance (MOF) reported a better performance in the GDP of 2021 first quarter and predicted a growth in the following quarters.

However, following a surge of COVID-19 infections that prompted a two-week lockdown, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed has stated that the previous GDP prediction will have to be revised.

“Last time, we projected 6.0 per cent to 7.5 per cent, certainly it (full lockdown) will have an impact on the economy. At present, we are gathering information.

“Definitely, what we had projected earlier will not be achieved, that’s for sure, just how much lower (percentage points) is still in discussions,” he said during an outreach programme with the Orang Asli community in Kampung Sungai Rual. 

The Jeli Member of Parliament continued, “For certain, there will be economic impact even though there are sectors operating during the full MCO. However, the impact would not be as bad as RM2.4 billion per day (as occurred during MCO 1.0).”

Malaysia’s COVID-19 daily cases have averaged between 6000 to 8000 since late May, with a record-high 9,020 on May 29. The first phase of MCO 3.0 was implemented on June 1 and will go on until June 14. On June 7, Malaysia reported a drop of new daily cases to 5,271.

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