Economy Malaysia? Latest review. (NOPE, nowhere near failed state)
If you like to know the article about Malaysia becoming a failed state, this was the earlier article. Needless to say, if you agree with the ‘xxxxxxx’ writer, you can skip this article yeah. I do not mind lose a few readers. I am certainly a blogger living in a good country and not a failed state. I also have NO property investment overseas. Maybe that’s also because I could not afford it? Whatever.
So, as usual, when the news is not something negative, no one likes to share, so I write and I share lah. Yes, this is about the economy of Malaysia from that international rating agency which downgraded us previously. Now, they say we are stable… despite ONE xxxxxx writer saying we are about to fail…
Article in theedgemarkets.com Fitch Ratings has affirmed Malaysia’s long-term foreign-currency issuer default rating (IDR) at ‘BBB+’, with a stable outlook. The international credit rating agency said the key rating drivers were strong and broad-based medium growth and persistent current account surpluses with a highly diversified export base.
The downside according to them is Malaysia’s high public debt, a low government revenue base (they should mention WHY is there this low revenue base… ahem, GST should be back please.) and lingering political uncertainty. (oh… they also realised uncertainty caused by many politicians is NOT good for the economy but many Malaysians do not.)
Fitch said Malaysia’s economy is gradually recovering from a contraction of 5.6% in 2020 caused by the Covid-19 pandemic. It said, “We expect gross domestic product (GDP) growth of 4.5% in 2021 and 6.3% in 2022, as the output gap narrows and the vaccine roll-out gathers pace, which should allow the services sector to benefit from pent-up demand.” The article is a long and comprehensive one. Please do read it here: Article in theedgemarkets.com
Recovery will certainly take time, vaccination is the key
2 months ago, America was one of the very first countries in the world to achieve 50% 1st dose vaccinations. 2 months later, today, America is only at 56%. It is moving very slowly because the remaining people are supporters of a party which continued to have their own theories about Covid-19. By the way, America still have BY FAR more doses than they need today.
The only thing many of these supporters may not realised is that the ex-party leader of that party had his vaccinations way back in January 2021.
2 months ago, Malaysia was at 4% 1st dose vaccinations. Today, we are at 40%. By the way, we are still doing best to secure more vaccines and hopefully all would arrive on time. Based on the speed we are at, we will be at the same level as the US; 50% first dose by 1st week of August the latest and will exceed them no later than mid August. In case as a Malaysian you did not know, then now you know.
What this whole story tells you is that recovery would start soon after full vaccinations as per demonstrated by most countries WHICH HAD the vaccines and have exceeded over 50% vaccinations and has even relaxed many of their SOPs. I do not want Malaysia to follow blindly.
Masks to me is to be continuously made compulsory and I would think it is crazy to say masks are no longer necessary. This is why I am confident. It’s because our speed of vaccination is extremely fast. Thank you to all who has made this vaccination speed so fast.
Next suggested article: Buying a bicycle is bad for the economy?