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KUALA LUMPUR: The government may need to inject additional funds to stabilize the country’s economy in the event of a fourth wave of Covid-19, said the Prime Minister’s Department (Economy) Minister Datuk Seri Mustapa Mohamed.
He said that Malaysia and the world at large were still fighting the pandemic and that the current situation could be considered dynamic.
“There are concerns about a fourth wave of the Covid-19 virus and, at the same time, we expect it to decrease with the availability of vaccines,” he said today in a discussion on ‘Economic Outlook 2021: What do traders expect? What can young people expect? ‘
Regarding the additional funds, he said that the government has not set any limits as its priority is people’s lives and jobs.
“The funds available come from loans and there is no limit, but at the same time it does have an effect on the country’s fiscal deficit,” he said.
Malaysia’s fiscal deficit rose to 6 percent of gross national product (GDP) this year, a drastic increase since the 2009 global financial crisis due to stimulus packages introduced by the government in the wake of the pandemic.
Mustapa said that Malaysia will receive supplies of Covid-19 vaccines by the first quarter of 2021, in hopes of stabilizing the country’s economy.
“The vaccine is expected to support the country’s economic recovery along with the government’s efforts and strategies this year to stabilize the economy, including the 2021 Budget, the PRIHATIN economic stimulus package, and the National Economic Recovery Plan (PENJANA),” said.
Meanwhile, the Vice President of the Malaysian SME Association Chin Chee Seong said he was grateful that Parliament passed the 2021 Budget.
“However, we hope that there will be political stability and that there will be no elections yet, since political stability has a direct impact on the economic stability of SMEs,” he said. – Bernama
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