No Result
View All Result
  • Login
  • Register
Business & Technology
SUBSCRIBE
  • .
  • Thought Leadership
  • Conversations
  • International Voices
  • News
  • Wealth
  • Digital Transformation
  • Lifestyle
  • Videos
  • Podcasts
  • .
  • Thought Leadership
  • Conversations
  • International Voices
  • News
  • Wealth
  • Digital Transformation
  • Lifestyle
  • Videos
  • Podcasts
No Result
View All Result
Biztech Asia
Home News

Malaysia’s path to economic recovery post pandemic

by editorial
21/08/20
in News, Thought Leadership
2 min read
0
Malaysia’s path to economic recovery post pandemic

Attribute to Asia Pacific Investment Bank (APIB)

The Malaysian government needs to expand its fiscal deficit to revive its economy in the post-pandemic period. It would also need to attract foreign investment from countries that have quickly recovered from the pandemic, says Adam Ho, Managing Director of the investment banking department of Asia Pacific Investment Bank.

According to Ho, Covid-19 continues to wreak havoc across the globe. As at August 19, there were 22.27 million confirmed cases globally with a mortality rate exceeding 3.5 percent. Malaysia’s situation is relatively optimistic with 9,219 confirmed cases and a mortality rate of about 1.35 percent.

Ho says that the pandemic has caused businesses globally to cease operating for months and posted an enormous challenge to governments and the people.

“Some economists expect the economic recession caused by the pandemic is more severe than that of 2008 Global Financial Crisis. Its impact on Southeast Asia is more detrimental than that of the 1997 Asian Financial Crisis,” he says.

Ho expects the global economy would take two years or longer to recover, depending on the performance of the world’s major economies including the US, Europe, Japan and China.

Malaysia, like many other smaller countries, is expected to face an uphill battle to recover from the economic depression in the post-pandemic period. It does not have a huge population to attract a large amount of foreign capital. The ongoing US, China trade war is also hurting its ability to generate continuous growth through export trade and private consumption.

“However, it is rich in natural resources and has a unique geographical location. The government can leverage these advantages to revive its economies,” Ho states.

There are three steps the Malaysian government should consider revitalising its economy post-pandemic, Ho points out. Firstly, it needs to widen its fiscal deficit target to ensure the resumption of businesses in various key sectors and infrastructure projects. This would reduce the unemployment rate, stabilise economic growth and retain talent in the country.

Secondly, it needs to tap into the capital market for financing and actively promote merges, acquisitions and restructurings activities among natural resources companies, industrial manufacturing companies and small and medium enterprises, especially those in the trading and plantation sectors.

Thirdly, the Malaysian government needs to attract foreign investment from countries that have recovered rapidly during the post-pandemic period. “Malaysian can position itself to become an international trading hub by catering to the needs of the world’s leading export countries, especially North Asia countries including China, Japan and South Korea,” Ho opines.

Commenting from the perspective of individual investors, Ho says they should adopt a more conservative approach post-pandemic. They should opt for fixed income products with principal guaranteed features and avoid high risk, high-yielding products.

In light of higher credit risk, he also recommends high-net-worth investors to invest in sovereign sukuk and US dollar bonds issued by China companies.

“Cash is king in the post-pandemic era. No one knows exactly whether the global economy will rebound or whether another nightmare is waiting,” Ho concludes.

Previous Post

Blockchain technology – Game-changer for global Islamic economy

Next Post

TIME registers 10.8% increase in revenue for 1H 2020

editorial

editorial

Related Posts

Dude, Where’s My Toys?
News

Dude, Where’s My Toys?

Equity and Oil market analysis: Stocks lower as bond market vigilantes return
News

Equity and Oil market analysis: Stocks lower as bond market vigilantes return

Business and technology quick bites
News

Business and technology quick bites

CREST spearheads an inclusive collaboration network for disruptive innovation in Health & Wellness
News

CREST spearheads an inclusive collaboration network for disruptive innovation in Health & Wellness

Can we automate our way out of the savings crisis?
News

The Noise Continues

Business and technology quick bites
News

Business and technology quick bites

Next Post
TIME registers 10.8% increase in revenue for 1H 2020

TIME registers 10.8% increase in revenue for 1H 2020

South Africa Is Open For Business

South Africa Is Open For Business

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Recommended Stories

Reflections by George Yeo: Celebrating 30 years of diplomatic relations between Singapore and China

Reflections by George Yeo: Celebrating 30 years of diplomatic relations between Singapore and China

China domestic moves and Biden administration – Good for ASEAN!

Chinese businesses still cautious on recovery

Sector rotation from tech stocks to value and cyclicals

Sector rotation from tech stocks to value and cyclicals

Popular Stories

  • Economic recovery: an elusive thought?

    Economic recovery: an elusive thought?

    0 shares
    Share 0 Tweet 0
  • Cannibalising your business can be profitable

    0 shares
    Share 0 Tweet 0
  • Sexual fulfillment builds confidence and well-being

    0 shares
    Share 0 Tweet 0
  • Tech Stocks – Ant gets stomped on but REITS offer stability amid volatility

    0 shares
    Share 0 Tweet 0
  • Singapore REITS and China tech stocks – Which should you buy?

    0 shares
    Share 0 Tweet 0

About Us

A Business and Technology digital publication that engages business leaders in business and technology conversations to help everyone pivot, adapt, and thrive in these turbulent times.

LEARN MORE »

Contact Us

Phone: 016-2011 050

Email: editor@biztech.asia

Address:
Level 18, Boutique Office 1 (B01-C)
Menara 2, No. 3, Jalan Bangsar,
KL Eco City, 59200, Kuala Lumpur.

Email Newsletter

Loading

© 2020 Business & Technology - made possible by Milestones Digital.

No Result
View All Result
  • Home
  • Thought Leadership
  • Conversations
  • International Voices
  • News
  • Wealth
  • Digital Transformation
  • Lifestyle
  • Videos
  • Podcasts
  • Login
  • Sign Up

© 2020 Business & Technology - made possible by Milestones Digital.

Welcome Back!

Sign In with Facebook
Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
OR

Fill the forms bellow to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

will use the information you provide on this form to be in touch with you and to provide updates and marketing.