A view of Malaysia (Photo: Internet) Malaysia’s economy is forecast to shrink by 6 percent this year due to the impacts of COVID-19 pandemic, but it will rebound 6.6 percent next year, according to the Global Economic Outlook report from Oxford Economics.
In its report issued on September 21, Oxford Economics said though the nationwide movement control order in Malaysia compounded the economic damage in the second quarter, the payoff has been apparent, with the pandemic situation currently in hand, which will aid the economy in regaining its footing.
Malaysia’s exports would benefit from improving Chinese import demand and the electronics cycle. Nonetheless, the speed of its recovery will likely slow given current sluggish global demand, high unemployment and weak investment, it said.
The report also said though the Recovery Movement Control Order has been extended to December 31, almost all sectors have been allowed to operate.
However, only a small number of sectors are still restricted such as night clubs and entertainment centres.
The restricted entry of foreign tourists has also caused difficulties for the tourism sector, which contributes to 15.2 percent of the country’s gross domestic product./.