Malaysia’s economy is expected to return to positive growth this year, along with other economies globally on the sustained progress in the vaccine rollouts that will boost consumption worldwide, the World Bank Group said.

Malaysian economy to recover in 2021 on effective vaccine deployment. (Photo: malaymail.com)

Its Macroeconomics, Trade and Investment Global Practice lead economist, Richard Record said the group expects the vaccine deployment can be mostly completed in 2021 in most economies, leading to strong recovery and demand, as well as boosting trade and commodity prices.

“We are projecting a global growth of 4.0 percent this year. As for Malaysia, we project economic growth this year to range between 5.6 and 6.7 percent,” he said during the virtual 2021 Malaysia’s Economic and Strategic Outlook Forum (MESOF) titled: “The Post-Covid-19 New Normal — Where Do We Go From Here” on 22 February.

Meanwhile, Anton Hendranata, an economist of the Bank Rakyat Indonesia (the People's Bank of Indonesia) (BIR), said although the Indonesian government’s National Economic Recovery (PEN) programme has accelerated the country’s economic recovery post COVID-19, the economy may still be in recession in the first quarter of the year given the adverse impact of the pandemic.

About 56.7 percent of the loans launched under the programme to assist State-owned enterprises have proven effective, he said.

Anton Hendranata said he believes that the extension of fiscal incentives of the Indonesian government this year would continue to help the economy escape from the downturn.

However, he said, amidst the complex developments of COVID-19, the Indonesian economy is expected face more difficulties during this quarter, with production to be contracted due to social distancing measures.

According to the expert, the Indonesian economy will gain its stability and growth momentum from the second quarter, and grow strongly from mid-year.

Source: VNA