Malaysia’s Financial State is Still Manageable
The COVID-19 Economic Recovery Plan may have caused the government to overspend, but Malaysia’s finances are still under control.
Economic Recovery Plans Introduced to Boost the Economy
Several months ago, Malaysia introduced the Prihatin Rakyat Economic Stimulus Package 2020 (PRIHATIN) and National Economic Recovery Plan (PENJANA). This was to help businesses in need who were affected by COVID-19. The plans were worth RM295 billion. On top of that, there was an RM45 billion fiscal injection, aimed at spurring the economy. This was after the economy experienced a contraction.
Studying the Fiscal Impact of the Economic Recovery Plan
Malaysia’s moratorium finished on 30 September 2020. The country is now moving toward a targeted moratorium. Since April to May, the country’s GDP has shown recovery from the initial contraction.
Those affected should be able to contact their respective banks and financial institutions to arrange for a reschedule or restructuring of their loan. Should they run into problems, they can reach out to the Counselling and Debt Management Agency.