Customise more policies, programmes to support economic sectors: Bursa’s chairman
KUALA LUMPUR: Malaysia needs more customisation of policies and programmes to identify sectors or regions that need greater support amid the movement curbs, said Economic Club of Kuala Lumpur chairman Tan Sri Abdul Wahid Omar.
Wahid, who is also Bursa Malaysia chairman, said the Movement Control Order 3.0 and subsequent full MCO had stifled the country’s recovery.
Malaysia had seen its 2021 gross domestic product (GDP) growth forecast being trimmed for the second time by the World Bank to 4.5 per cent, down from the six per cent growth forecast in March this year, according to him.
Finance Minister Tengku Zafrul Abdul Aziz reportedly said that Malaysia’s GDP growth for this year would have to be revised down, signalling that it could see expansion around 4.0 per cent.
The government has already said it would revise its current 6.0-7.5 per cent outlook for 2021 in August.
“The pandemic has had an asymmetric impact on sectors and regions. For example, the food and beverage (F&B) sector experienced higher closure rates, particularly in the northern states, where vendors largely rely on tourists from Kuala Lumpur and Selangor to patronise their food trails.
“The pandemic has had an asymmetric impact on sectors and regions. For example, the food and beverage (F&B) sector experienced higher closure rates, particularly in the northern states, where vendors largely rely on tourists from Kuala Lumpur and Selangor to patronise their food trails.
“Other manufacturing sectors have experienced particularly high closure rates in East Malaysia. I believe there is a need for the customisation of policies and programs to enable the identification of sectors or regions where more support is needed,” Wahid said at the Malaysian Economic Summit 2021 held virtually today.
He said the concerted and rapid response from the government, the central bank and the private sector towards the Covid-19 crisis, using a combination of fiscal, monetary and fiscal measures, should be commended.
Wahid, however, said people had complained that the stimulus packages were inadequate.
“Without the broad-based tax such as Goods and Services Tax, the government’s resources are rather limited with a fiscal deficit of 6.2 per cent of GDP in 2020 and expected to widen further to 6.8 per cent in 2021 compared to the official forecast of 6.0 per cent.
“The government has been prudent and introduced initiatives that do not unnecessarily put strain on our fiscal position but at the same time, cushion the rakyat from the worst effects of the economic downturn,” he said.
Wahid said the next few months would be absolutely crucial for the local economy.
He said achieving the milestones of the National Recovery Plan (NRP) would be pivotal for an economic rebound.
“Transitioning between the four phases will not be easy with the recent wave of Covid-19. But I am optimistic we can – and we must – achieve it.
“On the financing side, Malaysia’s banking system remains resilient and will continue to serve as a pillar of strength to support our domestic economic recovery. In Moody’s Investor Service May 2021 sector update, Malaysia’s banking system’s macro profile was rated as ‘strong’, higher than several of our regional neighbours,” he added.
Source: NST