Within the last 5 years, these were our GDP growth numbers. No longer like the 80s or the 90s but very healthy numbers nevertheless. Our reliance only on oil revenues have also dropped over the years and this should be good for the economy. Well, if only GST is still around, it could play its part too. Anyway, the below were the numbers for the last 5 years. 2015 – 2019 GDP growth in Malaysia.
It’s likely to be a negative number for 2020 as per BNM’s earlier forecast. Thus, we need a plan, fast. This plan will carry us through 2020 to set a base and for a recovery in 2021. The plan will be unveiled by the Prime Minister this week. It’s called the Economic Recovery Plan (ERP).
Article in nst.com.my Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said that the Economic Recovery Plan (ERP) has three main goals: empowering the rakyat, propelling businesses and stimulating the economy. ERP will have four main features.
- Agile and dynamic; needs continuous refinements because current situation is unprecedented
- Focused on public-private partnership; beyond just the GLCs or GLC investment companies.
- Comprehensive communication and outreaching; beyond just the business community, if the rakyat understands, they can also play their part in revitalising the economy.
- Data-based approach; implementation will be based on data and statistics and every achievement monitored and refined quickly and accurately.
This ERP will focus on the periods of June – December 2020. It will be announced by the Prime Minister this week. This will be the 4th phase on Malaysia’s efforts to address economic issues from COVID-19 pandemic. The Finance Ministery has held sessions with 100 stakeholders from various industries including tourism, social entrepreneurs, creative industries and trade unions since the start of May. Please do read the full article in nst.com.my
Image below is from Tengku Zafrul’s FB page. It depicts the stage which we are in currently.
I think the focus is on effective implementation of all these plans. The feedbacks have been received and have definitely been refined. It will definitely not be agreed by all stakeholders. However, if the effect is going to be positive (based on estimations), let’s go ahead and continue refining it periodically. Normalisation has definitely started with more people back to work.
What should happen now is to have more people working at what they do best, again. Earning their full monthly salary again. Spending the money like how they used to do, again. Businesses to understand that the current interest rate gives them an opportunity to plan for expansion too. The only catch is that we need to do this with COVID-19 still in our midst. This is unprecedented but I think Malaysians can do it. Right fellow Malaysians? Happy listening to the ERP announcement yeah.
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