Experts See Recession On The Horizon If COVID-19 Worsens
There’s a possibility that Malaysia is heading towards a recession if the situation with COVID-19 worsens and the country extends the movement control order (MCO) according to experts.
Economists said the current “twin crises” – health and the economy – requires the government to take bold and creative actions.
Malaysia’s economy has been hit after the spread of the coronavirus affected local businesses, especially small enterprises as they have to temporarily suspend activities.
Institute for Capital Market Research Malaysia (ICMR) board of directors chairman Tan Sri Dr Mohd Munir Abdul Majid also pointed out that the country wasn’t performing well before the outbreak started.
The outbreak has not only affected Malaysia’s economy but globally as analysts do not rule out the likelihood of a global recession if countries still struggle to fight the coronavirus.
Although the economy has been out-of-shape because of COVID-19, analysts said the government should first address the health issue at hand such as containing the virus besides ensuring the food supply remains sufficient throughout the MCO.
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During a recent televised broadcast, Prime Minister Tan Sri Muhyiddin Yassin said the decision on whether Malaysia extends the MCO will be based on a National Security Council (NSC) meeting.
Malaysians will know whether or not the order will be extended on March 30, a day before the order was originally planned to end.
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