: There is guarded optimism in the air. The contraction of the economy is beginning to moderate and there is hope this will lead to real growth in the coming months.
In an online briefing for the media today, SERC said the economy has begun to stabilise following the shock of the Covid-19 pandemic early in the year. “What had caused a RM1.5 trillion economy to come to a screeching halt in the second quarter was the ‘sudden stop’ in economic and business activities due to the movement control order,” SERC said.SERC said the 2021 Budget that will be tabled on Nov 6 should aim for targeted fiscal expansion.
“One of the five key risks is a new lockdown to control a sharp spike in infections . That may threaten the global recovery.SERC said a premature withdrawal of fiscal stimulus and monetary accommodation will also hurt the economy.