Malaysia’s economy is forecasted to be in the line of recovery starting the end of this year, The World Bank disclosed. Dr Firas Raad, The World Bank’s country manager for Malaysia sais that the country will return to growth by next year, and today the country needed to continue its effective public measure to curb the pandemic while contributing to the economic recovery to pre-pandemic state.
Raad said incentives to push private sector plus pro-growth policies will be a crucial addition to help the nations’ recovery from the current economic decline. The medium-term reform agendas should be priorities after support for vulnerable households and small-and-medium-enterprises (SME’s). Malaysia also has to commit to the reform agendas involving governance, competition in economic sectors and regulatory environment, as the way to carve its path to acclaim the status of a high-income nation. Strong investment in human capital is also crucial to boosting productivity growth.
The World Bank is reviewing the economic impact of the Coronavirus pandemic in Malaysia before concluding whether Malaysia should revise its GDP target for 2020 this month. In April, the bank has cut its GDP forecast to -0.1% from 4.5%.
The country gradually eased the coronavirus-related lockdown after economic activity froze for almost two months and entering the recovery phase with the declining infected number, and the public health and medical capacity are getting better and reaching more convincing level. Majority of the country’s business is granted to reopen, but with strict conditions until June 10, and will be replaced by recovery movement control order until August 31.
