Coronavirus: Malaysia unveils US$3.7 billion aid package as cases surge; Japan’s Suga vows to get country ‘back to normal’
- Malaysia’s Muhyiddin announces stimulus package a week after declaring state of emergency and suspending democracy
- Japanese PM pledges to restore life to what it was pre-pandemic, while Australia said it may not fully reopen its international borders this year
The measures come a week after Malaysia declared a state of emergency, allowing the government to enact immediate laws to contain the pandemic and support the economy. The move has raised concerns about a potential negative impact on market stability and the investment climate.
Malaysia is experiencing a fresh surge of Covid infections that has stretched its health system to the breaking point. The country recorded a record 4,029 cases Saturday and doesn’t expect to flatten the infection curve until May. The nation’s immunisation plan is on track, with the first batch of vaccines set to roll-out in early March, Muhyiddin said.
The emergency, which could last until August 1, coincides with a two-week lockdown against the virus that led analysts to shave as much as 1.5 percentage points off their gross domestic product forecasts for this year. While the government has said the economy will grow as much as 7.5 per cent this year, regions under the new stay-at-home orders contribute more than two-thirds of GDP.
The government has announced 305 billion ringgit in total stimulus measures, or more than 20% of GDP, Muhyiddin said on Monday. The previous measures included 55 billion ringgit of direct stimulus, he said.