Following the outbreak of the Covid-19 pandemic, Malaysia, like many countries in the world, feels huge economic challenges ahead. To deal with the economic depression caused by the pandemic, the Malaysian government has implemented the Prihatin Rakyat economic stimulus package. The Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed also said that the government’s draft of post COVID-19 economic recovery plan to be released soon.
As China’s first multi-national independent think tank since 1993, ANBOUND Research Center (Malaysia) hopes to assist Malaysia to restart the economy smoothly by producing a report on economic recommendations based on China and other countries’ experience, as a reference for Malaysian policymakers. We are looking forward that Putrajaya will introduce a prudent policy framework with sustainable development strategies for the country’s economy post pandemic.
On 7 May 2020, Dato’ Ong Chong Yi, ANBOUND Regional Chief Representative in ASEAN and Datuk Tan Teow Choon, ANBOUND Malaysia Advisor presented the report to Minister Datuk Seri Mustapa Mohamed, together with a donation of 3000 face masks for researchers in the Minister's Office.
The report on Post Covid-19 Development Strategies and Options for Malaysia is based on the fundamental judgments, assessment and conclusions of ANBOUND since January 2020 when the novel coronavirus emerged. This report analysed the current economic status of Malaysia and its competitive advantages in Asia and suggested a balanced geo-strategy plan that set the foundation for Malaysia’s cooperation with the World in the post pandemic era. The report also compiled 20 short term economic measures implemented by China and the world in coping with Covid-19, which include interest rate and tax reduction, consumption vouchers and cash subsidies, legal intervention, bond issuance, infrastructure investment, consumption finance, public relief, unemployment aid, medical and healthcare aid, etc. ANBOUND estimated that public spending to fight COVID-19 by different countries are expected to take up 10-20% of their total GDP.
The report also suggested the Malaysian government to focus on four (4) Key Economic Policies, i.e industrial park, energy, welfare and open economy for its long term development in the post pandemic era. Based on ANBOUND’s mathematical model analysis, the economic depression caused by the pandemic may last for two years, plus the superposition of the major recession and depression in the world energy market, we expect 2021 to be Malaysia’s most difficult period in terms of economy as there may be severe economic contraction.