Wednesday , February 8 2023

Next year’s economy is likely to perform better because this year was terrible


Malaysians began to look forward to a transition year in 2020, expecting former Prime Minister Dr. Mahathir Mohamad will hand over power to Anvar Ibrahim, who is awaiting PM. It was intended to go hand in hand with legal reforms and the move towards a more progressive and prosperous society.

Instead, there has been endless uncertainty and maneuvers on the political front. At the same time, the economy was hit hard when Malaysia joined the rest of the world to deal with the Covid-19 pandemic, which claimed at least 1.5 million people worldwide and 380 in Malaysia.

At times this year, it almost seemed a cruel joke that the dream of a fully developed country under Wawasan 2020 Malaysia has experienced a recession after two consecutive quarters of negative growth.

Indeed, although the government’s budget for 2021 was projected on the basis of a rapid economic recovery with gross domestic product (GDP) growth of up to 7.5 percent, the bad guys argue that this downturn could prove to be as long lasting and more severe than in the mid-1980s and Asia. financial crisis in 1997.

In recent days, rating agency Fitch Ratings has downgraded Malaysia’s long-term foreign currency issuer default rating (IDR) from A- to BBB +, potentially …

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