Malaysia Economic Monitor, June 2020 : Surviving the Storm

Malaysia's economy has been severely affected by the COVID-19 (coronavirus) pandemic. In 2020, Malaysia's economy is projected to contract by 3.1 percent. In Q1 2020, growth slowed to just 0.7 percent with efforts to flatten the curve of the pandemic through a series of movement control or...

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Main Author:	World Bank
Format:	Report
Published:	World Bank, Washington, DC 2020
Subjects:	CORONAVIRUS COVID-19 PANDEMIC RESPONSE ECONOMIC GROWTH ECONOMIC OUTLOOK FISCAL POLICY SOCIAL ASSISTANCE LABOR MARKET PUBLIC EXPENDITURE
Online Access:	http://documents.worldbank.org/curated/en/691301592847609750/Malaysia-Economic-Monitor-Surviving-the-Storm http://hdl.handle.net/10986/33960

id	okr-10986-33960
recordtype	oai_dc
spelling	okr-10986-339602021-05-25T09:49:24Z Malaysia Economic Monitor, June 2020 : Surviving the Storm World Bank CORONAVIRUS COVID-19 PANDEMIC RESPONSE ECONOMIC GROWTH ECONOMIC OUTLOOK FISCAL POLICY SOCIAL ASSISTANCE LABOR MARKET PUBLIC EXPENDITURE Malaysia's economy has been severely affected by the COVID-19 (coronavirus) pandemic. In 2020, Malaysia's economy is projected to contract by 3.1 percent. In Q1 2020, growth slowed to just 0.7 percent with efforts to flatten the curve of the pandemic through a series of movement control orders and with deep uncertainty regarding growth prospects severely constraining economic activity. A pronounced output contraction of around 10 percent in Q2 2020 is envisioned, reflecting the significant impact of the economic disruptions resulting from the MCO imposed during the quarter. This is expected to be followed by a partial recovery in the second half of the year, as the outbreak eases and mobility restrictions are gradually lifted. This forecast assumes that the spread of pandemic is broadly contained at the global level and that the massive fiscal and monetary policy support measures implemented by governments around the world limit the depth of contraction to global economic activity. With all these factors, the near-term outlook for Malaysia's economy is unusually uncertain at present. The COVID-19 pandemic has resulted in an unprecedented crisis that requires large-scale and unconventional policy responses by governments everywhere. With the crisis severely affecting private demand and causing supply shocks, the government is tasked with the responsibility of facilitating economic recovery in the near term. Malaysia's economy remains resilient and rests on strong fundamentals. Its diversified economic structure, sound financial system, effective public health response and proactive macroeconomic policy support suggest that Malaysia will be able to ride out the storm better than many other countries. In the near term, Malaysia's fiscal strategy should be re-prioritized to create additional policy space. This will require efforts to re-allocate expenditures towards priority areas, identify new sources of nontax revenue, as well as legislative amendments to temporarily increase available fiscal space. 2020-06-22T21:33:58Z 2020-06-22T21:33:58Z 2020-06-24 Report http://documents.worldbank.org/curated/en/691301592847609750/Malaysia-Economic-Monitor-Surviving-the-Storm http://hdl.handle.net/10986/33960 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling East Asia and Pacific Malaysia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	CORONAVIRUS COVID-19 PANDEMIC RESPONSE ECONOMIC GROWTH ECONOMIC OUTLOOK FISCAL POLICY SOCIAL ASSISTANCE LABOR MARKET PUBLIC EXPENDITURE
spellingShingle	CORONAVIRUS COVID-19 PANDEMIC RESPONSE ECONOMIC GROWTH ECONOMIC OUTLOOK FISCAL POLICY SOCIAL ASSISTANCE LABOR MARKET PUBLIC EXPENDITURE World Bank Malaysia Economic Monitor, June 2020 : Surviving the Storm
geographic_facet	East Asia and Pacific Malaysia
description	Malaysia's economy has been severely affected by the COVID-19 (coronavirus) pandemic. In 2020, Malaysia's economy is projected to contract by 3.1 percent. In Q1 2020, growth slowed to just 0.7 percent with efforts to flatten the curve of the pandemic through a series of movement control orders and with deep uncertainty regarding growth prospects severely constraining economic activity. A pronounced output contraction of around 10 percent in Q2 2020 is envisioned, reflecting the significant impact of the economic disruptions resulting from the MCO imposed during the quarter. This is expected to be followed by a partial recovery in the second half of the year, as the outbreak eases and mobility restrictions are gradually lifted. This forecast assumes that the spread of pandemic is broadly contained at the global level and that the massive fiscal and monetary policy support measures implemented by governments around the world limit the depth of contraction to global economic activity. With all these factors, the near-term outlook for Malaysia's economy is unusually uncertain at present. The COVID-19 pandemic has resulted in an unprecedented crisis that requires large-scale and unconventional policy responses by governments everywhere. With the crisis severely affecting private demand and causing supply shocks, the government is tasked with the responsibility of facilitating economic recovery in the near term. Malaysia's economy remains resilient and rests on strong fundamentals. Its diversified economic structure, sound financial system, effective public health response and proactive macroeconomic policy support suggest that Malaysia will be able to ride out the storm better than many other countries. In the near term, Malaysia's fiscal strategy should be re-prioritized to create additional policy space. This will require efforts to re-allocate expenditures towards priority areas, identify new sources of nontax revenue, as well as legislative amendments to temporarily increase available fiscal space.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Malaysia Economic Monitor, June 2020 : Surviving the Storm
title_short	Malaysia Economic Monitor, June 2020 : Surviving the Storm
title_full	Malaysia Economic Monitor, June 2020 : Surviving the Storm
title_fullStr	Malaysia Economic Monitor, June 2020 : Surviving the Storm
title_full_unstemmed	Malaysia Economic Monitor, June 2020 : Surviving the Storm
title_sort	malaysia economic monitor, june 2020 : surviving the storm
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/691301592847609750/Malaysia-Economic-Monitor-Surviving-the-Storm http://hdl.handle.net/10986/33960
_version_	1764479917638025216

Malaysia Economic Monitor, June 2020 : Surviving the Storm

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