Malaysia unveils additional RM15b stimulus plan as Covid cases surge

[KUALA LUMPUR] Malaysia unveiled RM15 billion (S$4.9 billion) in new assistance package to help the economy weather the impact from a fresh surge in coronavirus cases.

The plan, the first stimulus the government has announced this year, was detailed by Prime Minister Muhyiddin Yassin in a televised address on Monday.

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 emergency, which could last until Aug 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.

BLOOMBERG