Asia Pacific Investment Bank: Malaysian Economic Revival Needs Greater Fiscal Deficit and Foreign Investment

The revival of the Malaysian economy from the present crisis will require the Government of Malaysia to widen its fiscal deficit and attract foreign investment from countries that recover fastest from the pandemic, said Adam Ho, Managing Director of Investment Banking at Asia Pacific Investment Bank.

Malaysia had already been struggling to expand its private consumption and export market due to the US-China trade war before the COVID-19 crisis. However, Ho believes that the country’s rich natural resources and strategic geographical location lend comparative advantages to the economy in developing their export trade.

Ho outlined the three-pronged strategy the Government needs...