KUALA LUMPUR – The country’s economy is starting to show positive signs following the opening of businesses in stages, Prime Minister Tan Sri Muhyiddin Yassin said, as reported on Bernama.
“The country’s economy is starting to show positive signs towards recovery,” he said in a special address on the latest development of the Recovery Movement Control Order (RMCO) which was telecast live on national television on August 28.
He said at this time almost all sectors have been allowed to operate except a small number which are still restricted such as night clubs and entertainment centres.
These are places where the new normal is a little difficult to practise.
“The entry of foreign tourists is also not allowed to prevent the spread of imported cases into the country.
“Sports activities are allowed but without the involvement of foreign participants and spectators,” he said.
In line with this, he said the government has decided to extend the RMCO till December 31, 2020.
Previously, Bank Negara Malaysia (BNM) said Malaysia’s economy is experiencing a V-shaped recovery after taking the brunt of the lockdown following the impact from the COVID-19 pandemic and implementation of the MCO in the second quarter of this year.
Nevertheless, the Central Bank said the situation is not out of the woods yet as challenges linked to the pandemic and its adverse impact remains both in Malaysia and elsewhere.
In the second quarter of 2020, Malaysia’s gross domestic product (GDP) recorded a contraction of 17.1% (Q2 2019: 4.9%) when the country was forced to implement the MCO to contain the spread of COVID-19.
In line with this, BNM has revised the 2020 GDP projection to -5.% to -3.5% from -2% to 0.5%.
The country’s economy is expected to recover and record growth of 5.5% to 8% in 2021.