TWENTY twenty was truly exceptional. What many envisioned as the year of transformation for Malaysia unfolded into an annus horribilis of economic contraction, exposed systemic issues and the vulnerable made more fragile by the Covid-19 pandemic.
Thankfully, Malaysia’s economy weathered through a tumultuous 2020 in a show of resilience, finding its feet reasonably well amidst the capable handling of the Covid-19 outbreak, and in the government’s strong resolve in containing the pandemic’s impact on its people and businesses through four economic stimulus packages, i.e., Prihatin, Prihatin SME+, Penjana and Kita Prihatin.
Based on a better understanding of the virus, the decisive action to gradually reopen the economy helped businesses adapt and resumed their operations. This delicate balancing act in protecting lives and livelihoods resulted in a slower GDP contraction of 2.7% in the third quarter, compared with regional peers such as Indonesia (-3.49%), Singapore (-5.8%), Thailand (-6.4%), the Philippines (-11.5%), and even other key economies like the US (-2.9%).
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