Kenanga Research: Malaysia’s COVID-19 Stimulus Largest to Date Amongst ASEAN Economies

According to the research arm of Kenanga Investment Bank, Kenanga Research (KR), Malaysia’s COVID-19 stimulus packages accounts for 17.6% of its Gross Domestic Product (GDP) to date, higher than those of its ASEAN peers. For example, Singapore and Thailand’s stimulus packages stood at 12% of GDP, while Indonesia’s was just 2%.  While KR has cautioned that the federal government could now experience limited fiscal space as a result of the large stimulus, KR also highlights other funding options available to Malaysia, should it be required.

KR added that generally a fiscal stimulus could come out of a budget surplus or from the national reserve. With Malaysia currently holding a balance sheet deficit, KR...