KUALA LUMPUR – The arrival of the Covid-19 vaccine in Malaysia is expected to turn the national economy around.
AIMST University Malaysia vice-chancellor Datuk John Antony Xavier said the confidence the vaccine roll-out is generating and relaxation of standard operating procedures will enable accelerated economic growth.
“Economic growth for this year is projected to be at 5.5% from a negative growth of 5.6% in 2020.
Greater employment opportunities from the relaxation of the restrictions, rising income plus pent-up demand will increase consumption expenditure, he said.
He told The Vibes that because consumption expenditure comprises 60% of gross domestic product, this will unleash a multiplier effect.
“More domestic economic consumption will ignite a virtuous cycle, which will lead to business expansion and higher employment resulting in more incomes and a further acceleration of economic consumption.”
Malaysia’s first batch of vaccines comprising some 312,000 doses developed by Pfizer-BioNTech arrived on Sunday at the KL International Airport via Malaysia Airlines Flight MH604.
Today, Prime Minister Tan Sri Muhyiddin Yassin was the first in the country to receive the jab, kicking off the national immunisation programme.
The World Bank had also said Malaysia’s economy is expected to return to positive growth this year, along with other economies globally on sustained progress in the vaccine roll-outs that will boost consumption worldwide.
World Bank Group macroeconomics, trade and investment global practice lead economist Richard Record said the group expects the vaccine deployment can be mostly completed this year in most economies, including Malaysia, leading to strong recovery and demand, as well as boosting trade and commodity prices.
Meanwhile, a research analyst at Maybank Investment said the vaccine arrival will boost investor confidence in the domestic economy that will hopefully attract investments to the country.
“Investors generally do not like uncertainty and the vaccine will improve the country’s economic sentiments and bring back flailing foreign direct investments.” – The Vibes, February 24, 2021
