Experts: Malaysian economy can see quick recovery after COVID-19
Penang, Malaysia’s technology hub, is helping drive an economic recovery that could see the country bounce back faster than any of its peers in Southeast Asia, said experts.
Hanoi (VNA) – Penang, Malaysia’s technology hub, is helping drive aneconomic recovery that could see the country bounce back faster than any of itspeers in Southeast Asia, said experts.
The northern state drew 6.8 billion ringgit (1.6 billion USD) of foreign directinvestment in the first quarter, almost two-thirds of the country’s total. It attractednew projects even as the pandemic disrupted global supply chains and dampeneddemand worldwide. Approved investments in Penang in Q1 nearly doubled from theprevious three months, according to the InvestPenang investment promotionagency.
Wellian Wiranto, an economist at Oversea-ChineseBanking Corp. in Singapore, said that Malaysia plays akey role in the global semiconductor supply chain, and has benefited from thetentative recovery in the electronics cycle.
The Malaysiangovernment has announced nearly 70 billion USD in stimulus -- equal to about 20percent of GDP -- to cushion the effects of the pandemic. However, unemploymenthas surged to 5.3 percent, the highest since at least 1990.
Earlysigns of a rebound are evident in Malaysia’s exports, which climbed 8.8 percentfrom a year ago, driven by a 20-month high in electronics sales.
Analysts believe that Malaysia will overcome the difficultperiod caused by the COVID-19 pandemic better than most other countries inSoutheast Asia. The World Bank (WB) predicted that Malaysia's economy willdecrease by 3.1 percent in 2020 before increasing 6.9 percent in 2021.Meanwhile, the International Monetary Fund (IMF) projected that Malaysia’seconomy will shrink 3.8 percent this year before growing 6.3 percent next year.
FitchRatings said that the demand of Malaysia's middle class, making up 77 percent oftotal households, will help offset the decline in demand in overseas markets.CGS-CIMB believes that Malaysia's strong monetary and fiscal measures will helpits economy recover faster than other Southeast Asian countries./.
Police in Malaysia’s Penang state arrested 10 women working as prostitutes at a hotel in Jelutong, including six Thais, two Indonesians and two Vietnamese, on November 14.
The Malaysian government said on January 20 that the country will send back an additional 110 containers of plastic waste to source nations after having successfully returned 150.
The Malaysian government has decided to extend the travel and business restrictions for four more weeks until June 9 in the context that the Southeast Asian country gradually reopens its economic activities.
Malaysia’s tourism industry has shown signs of rapid recovery since Prime Minister Muhyiddin Yassin announced the Recovery Movement Control Order (RMCO) on June 5.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.
Malaysia’s gross expenditure on R&D (GERD) reached 1.01% of gross domestic product in 2022, a notable increase, with more than 51% contributed by the industry sector. The country is targeting GERD to reach 2.5% by 2030, in line with the national goal of transforming into a high-technology nation.
The facility was established in response to a growing shift in the Filipino labour force from the Middle East to Japan, where workers are seeking safer working environments.
In the latest Indonesia-US trade agreement in July, the US administration agreed to reduce the reciprocal tariff, which was initially set at 32% by US President Donald Trump last April, to 19%.
Real estate agency ERA Singapore estimated that there are 2,703 condo developments in Singapore today, of which 836 or 31% are at least 30 years old. In 10 years, this number is expected to climb to 1,160, assuming none is sold en bloc.
The new framework is designed to ensure that incoming investments deliver tangible national benefits, such as the creation of high-quality jobs for Malaysians and the development of local company ecosystems and technologies.
Singapore led with a total of 8.8 billion USD in realised investment, followed by Hong Kong and mainland China, Malaysia, and Japan with 8 billion USD, 1.7 billion USD and 1.6 billion USD, respectively.
Thai Acting Prime Minister Phumtham Wechayachai on August 7 outlined his strategy for tackling drug problems in Thailand, aiming for a "Zero Drugs Thailand" within three months.
The US has described Malaysia's role as Chair of the Association of Southeast Asian Nations (ASEAN) as vital in helping ease tension between Thailand and Cambodia.
Indonesia ranks as the world's sixth-largest gold reserve holder, producing an estimated 160 to 200 tonnes annually, mainly through major state-owned enterprises. Despite this, much of the mined gold is held or traded abroad. In 2024 alone, Indonesia exported gold worth 5.4 billion USD while reimporting 2.6 billion USD worth of the metal.
Cambodia and Thailand vowed not to undertake provocative actions that may escalate tensions, including entering the other side’s air space and territory, and refrain from constructing or enhancing military infrastructure.
Trenggono emphasised that the Indonesian government aims to increase the total coverage of MPAs to 97.5 million hectares by 2045. This initiative forms a key component of the “Golden Indonesia 2045” vision, which prioritises sustainable maritime development and environmental protection.
Illustrative image (Photo: //www.theedgemarkets.com/) 
