Fitch Solutions Lowers Economic Growth Estimate for Malaysia in 2021

Fitch Solutions (Fitch), research arm of Fitch Group, estimates a drop in Malaysia’s gross domestic product (GDP) growth from a projected 11.5% to 10% in 2021; citing muted private consumption.

In a statement, Fitch states that strained finances for the Government of Malaysia and a raised debt limit of 60% of GDP, allow less scope for fiscal support, putting employment and wages in Malaysia under intense pressure.

The number of active COVID-19 cases in Malaysia stood at 48,150 as of the 31st of January 2021, according to media reports. Fitch states that a decline in GDP growth for Malaysia for 2021 would negatively impact the available funds needed to support the country’s healthcare system; highlighting Malaysian Prime Minister Tan Sri Muhyiddin Yassin&rs...