Tuesday, 25 February 2020

Covid-19 and Malaysia's Economic Stimulus Package

Malaysia has confirmed a total of 22 cases as of 25 February 2020 and so far 20 patients have recovered. In order to treat Covid-19 suspected and positive cases, The Ministry of Health had expedite Covid-19 screening at 48 hospitals and announced 26 referral hospitals. The Government started taking stricter control measures after discovering the 14th case which occurred through a human-to-human transmission. 

The most affected sectors in Malaysia are the Travel and Tourism and associated sectors such as accommodation (Hotels) as they have been getting a lot of cancellations from tourists ever since the outbreak. Bank Negara Malaysia announced that the Covid-19 outbreak will affect Malaysia's economic growth in Q1 2020. 

Analyst and industry players hopes that the Government will introduce a stimulus package to stimulate Malaysia's economy and lighten any adverse repercussions from the Covid-19 outbreak. A stimulus package is soon to be announced and the followings are some of the proposed measures by experts: 

 * EPF contribution rate reduction for affected sectors. 

 * Incentives and Tax rebates for affected sectors. 

 * Discounts for affected sectors. 

 * Stimulus package for the services and manufacturing sector to boost economic growth. 

 * Reduction in borrowing cost.

Let's hope for some exciting measures to be announced in the upcoming stimulus package. 






Lochana Nanthacumar
Content Management Analyst
Wolters Kluwer Malaysia 



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