A political veteran widely regarded as a technocrat, Minister in the Prime Minister's Department Datuk Seri Mustapa Mohamed is seen as a calm and steady hand to guide Malaysia as the country navigates through worldwide economic uncertainty caused by an unprecedented pandemic.
But Mustapa recognises that things are different now: “Those days, things were certain, the world was not as complicated, ” he says. The landscape has changed and digital transformation plays a bigger role. At the secretariat, we scrutinise all papers to be considered by the EAC. At the regional level, my roles include fostering greater regional cooperation and border area development with countries like Brunei, Thailand, Indonesia and the Philippines through the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area , The Indonesia-Malaysia-Thailand Growth Triangle and the Malaysia-Thailand Joint Authority platform.
A lot depends on the Covid-19 vaccine. Throughout the world, including in Malaysia, there is a fear of resurgence and a second wave. Some Malaysians are still quite cautious and this will have some impact on growth. Historically, the highest unemployment rate Malaysia ever saw was 7.4% in 1986 during the 1985-1986 recession. In 1999 at the end of the East Asian Financial Crisis the rate was at 3.4%, and in 2009 during the Global Financial Crisis we were at 3.7%.
In my view, the unemployment rate will remain around 5% in the next few months and will dip below 5% by the end of the year. With improvement in overall economic conditions, there will be further improvement in 2021. In recent weeks, we have seen strong growth in domestic tourism. Resorts, islands, and a number of other tourist attractions have seen increasing demand. However, we were informed that city hotels are still not doing well.
The EAC through its weekly meeting, has played an important role in restoring economic and financial stability. Having implemented most of the measures under the Prihatin and Penjana, the EAC is now focused on stimulating economic recovery. When people and businesses are having problems, it is important to talk to them. We have been talking to small and medium enterprises , chambers of commerce, retailers, hoteliers, engineers, lawyers, education providers, people in construction and agriculture, manufacturers, investors, foreign and local, you name it, every sector. Feedback from these engagements are tabled at the EAC meetings. To date, 19 EAC meetings have been held with more than 40 papers presented.