Malaysian economy shrinks most in more than two decades
Malaysia’s economy has contracted the most since the Asian financial crisis more than two decades ago, due to impacts of global trade crisis and tough measures taken to prevent the spread of the COVID-19.
A corner of Kuala Lumpur, capital of Malaysia (Source: internet)
Kuala Lumpur (VNA) - Malaysia’s economy has contracted themost since the Asian financial crisis more than two decades ago, due to impactsof global trade crisis and tough measures taken to prevent the spread of the COVID-19.
According data released by the country’s central bank on August 14,Malaysia’s gross domestic product shrank 17.1 percent in the second quartercompared to a year earlier, its worst showing since the fourth quarter of 1998.That compared to the median forecast of a 10.9 percent contraction in aBloomberg survey.
The restrictions, which included businesses being shutdown and people confined to their homes, “resulted in demand and supplyshocks,” with border control measures globally hitting tourism arrivals, thecentral bank added.
Wan Suhaimi Saidi, an economist at Kenanga Investment Bank,warned that the trade-dependent economy was “heading into a recession sincethere is no sign of a full recovery in demand and business activity.”
He said he expects a full-year contraction of between 4 percent and 6 percent,more than the central bank’s estimate of 3.5-5.5 percent.
However, Nor Shamsiah Mohamad Yunus, head of the central Bank Negara Malaysia,said the economy was poised for a recovery in the current quarter asvirus-related restrictions are eased.
“We are likely to see a trough in the second quarter. The economy is poised fora recovery in the second half and rebound further in 2021,” he said at avirtual news conference. “I am cautiously optimistic the worst is behind us.”
Bank Negara said the second-quarter decline “reflected theunprecedented impact of the stringent containment measures to control theCovid-19 pandemic globally and domestically” imposed from mid-March to earlyJune.
The country has so far recorded over 9,000COVID-19 cases, including 125 deaths./.
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The Malaysian government has allowed traders to hold unlimited cheap sales in a bid to fuel consumer spending, thereby boosting the country's economy amid the COVID-19 pandemic.
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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.
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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.
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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.
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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.
A corner of Kuala Lumpur, capital of Malaysia (Source: internet) 
