PUTRAJAYA April 7: The government expects Malaysian economy to recover in the next six months following the release of the Prihatin Stimulus Economic Package and the Additional Prihatin initiatives which aim to help and benefit the affected people and the business sectors from the Covid-19 outbreak.
Finance Minister, Datuk Seri Tengku Datuk Seri Zafrul Tengku Abdul Aziz said, the performance of the business sectors and the economic recovery/growth will determine the Budget 2021 allocation that will be prepared in October.
“With the initiatives and the financial facilities allocated for the Small Medium Enterprises (SMEs) in the Additional Prihatin, the government is positive that it could help the people and support the business sectors to recover after being badly hit by GOVID-19 pandemic.
“Even though the allocation of the Prihatin Packages has incurred a 4.7% deficit but it is much lower than 6.7% deficit in 2009 that was encountered by Malaysia during the global financial crisis.
“The allocation of RM260 billion even though is 18% more than the National Gross Domestic Product (GDP) but is still good as it is not a foreign loan,” he said on TV1live telecast in “Bicara Naratif” programme here this evening.
He added, the financial deficit is better compared to other countries as this is an unprecedented situation where not only Malaysia but 180 countries in the world have been affected by the corona virus outbreak.
The Finance Minister also stressed that the government’s focus is still on the protection of the people against GOVID-19. The government will have to add more allocation depending on the situation if the allocation of RM1 billion is insufficient.
Tengku Zafrul also talked about the good reports that Malaysia received from many international and independent bodies including World Health Organization (WHO) about Malaysia’s good health care services, medical facilities and researches.
He said, Malaysia should not take advantage or relax on the positive reports but have to focus more in the health and medication sectors as the government has made big investments for the past 10-20 years.
The Minister also mentioned about the digital economy that is doing very well during the Movement Control Order (MCO). People buy food and commodities using online services.
In the digital economy he said creative ideas are needed and as a result new jobs will be created to replace the old ones. This includes the creation of “artificial intelligence’’ technology in business sectors. –Malaysia World News