KUALA LUMPUR, Nov 5  -- The government’s timely implementation of the Movement Control Order (MCO) to flatten the COVID-19 infection’s curve, as well as the introduction of stimulus packages have cushioned the impact from the health crisis. 

The Finance Ministry (MoF) said the government’s success was also supported by the public’s strict observance of the different phases of the MCO and the standard operating procedures (SOPS), which helped to contain the pandemic. 

"As a result, the economy is expected to improve gradually in the second half of the year, as reflected by various macroeconomic indicators," it said in its Economic Outlook 2021 report released today. 

MoF said the stimulus measures paved the way for a firm economic recovery, subject to successful, continued containment of the pandemic. 

The stimulus packages consisted of fiscal and non-fiscal measures worth a total of RM305 billion. 

The ministry estimated that the packages would boost gross domestic product (GDP) growth by 4.0 – 4.2 percentage points in 2020, and estimated the impact on employment to be at 3.5 percentage points, preventing about 560,000 workers from losing their jobs. 

Meanwhile, being an open economy, the speed and magnitude of Malaysia's full economic recovery are also contingent on the performance of its major trading partners, it said. 

Nevertheless, the crisis offers businesses the opportunity to reform strategies, expedite digital transformation and reallocate resources to increase efficiency and productivity.

"Unless and until a vaccine is found and made widely accessible, the war against COVID-19 is not over, and efforts to curb the virus and its impact are still ongoing," said MoF.

The report also noted that the sudden rise in COVID-19 infections necessitated the reimposition of the Conditional MCO (CMCO) for 14 days, starting from Oct 13 in Sabah; Oct 14 in Selangor, Kuala Lumpur and Putrajaya and Oct 17, 2020 in Labuan, to re-flatten the COVID-19 curve.

-- BERNAMA