The Department Of Statistics Malaysia (DOSM) has said in its Malaysian Economic Statistics Review (MESR) that the country is heading into an economic recession in the next four to six months.
According to the report, the prediction of recession was made based on the latest leading indicators as in the country’s marginal gross domestic product (GDP) growth of 0.7% in the first quarter of 2020. The figure infact, is the lowest since the third quarter of 2009 (Q3 2009) – after the global financial crisis between mid-2007 to early 2009.
The country has lost over RM 22.8 billion in economic output during Q1 2020 due to the MCO
Chief statistician Datuk Seri Mohd Uzir Mahidin said that the country has lost over RM 22.8 billion in economic output during Q1 2020 due to the movement control order (MCO) enforced to combat the spread of Covid-19.
“The outbreak has caused the temporary closure of businesses, where they faced the risk of immediate cash flow constraints as their earnings decreased.”
The report stated that the tourism industry was the first to be heavily impacted, followed by the accommodations and aviation industry.
New ways of conducting business and diversifying the economy is required by embracing technological advances
The report further commented that new ways of conducting business and diversifying the economy is highly needed by embracing technological advances such as the Industrial Revolution 4.0 and digitalisation of business ecosystem.
“With the adoption of new technologies, the business process will create a decent work environment and a more conducive and sustainable labour market,” said Mohd Uzir in the report.
“The outbreak has caused the temporary closure of businesses, where they faced the risk of immediate cash flow constraints as their earnings decreased,” said Mohd Uzir.
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