Summary: Economic Recovery Plan to cushion economy from sharp contraction



Affin Hwang Capital expect the upcoming Short-Term Economic Recovery Plan (ERP) to help stabilize the economy from further contraction. Previously the government announced a RM266 billion Economic Stimulus Package (PRIHATIN) to provide short term relief for six months of assistance to support the economy that was facing the coronavirus outbreak. Malaysia Leading Index (LI) had declined sharply to 4.9% in March 2020 as compared to 0.8% in February 2020. It is the worst fall since November 1991. The DOSM predicted that Malaysia will head to an economic recession in the next four to six months.

-The Edge, 3 June 2020

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