KUALA LUMPUR – Malaysia’s economic fundamentals remain strong despite experiencing one of the worst crises in recent years due to Covid-19, said the Finance Ministry.
In a webinar yesterday, Treasury Deputy Secretary-General Zakiah Jaafar said this is primarily due to the country’s ability to ensure balance and strength in internal factors that affect the economy, which will be supported by domestic demand next year.
She said Malaysia has a diverse economic and export structure, strong banking system, high global competitiveness rankings, solid exports and high international reserves.
Zakiah said 58.1% of the nation’s gross domestic product this year comes from the services industry, agriculture (7.4%), mining (6.9%), manufacturing (22.6%) and construction (4%).
She said the country’s economy remains competitive despite falling two notches in the Global Competitiveness Index (GCI).
Malaysia ranked 25th in the GCI in 2018 and dropped to 27th last year, putting it a spot behind Iceland.
Zakiah pointed to the banking sector to support her statement.
“The banking sector is still strong, as there has been a low incidence of non-performing loans, and the banks have high liquidity,” she said, referencing data between January 2019 and September this year.
A blanket loan moratorium was in place from April 1 to September 30.
University Malaya’s Post-Budget Analysis Webinar discussed Budget 2021’s ability to overcome the Covid-19 pandemic and ensure livelihoods and businesses are sustained. – The Vibes, November 21, 2020
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