Malaysia’s 2021 Economic Recovery Dependent on Global Outlook and Outcome of Vaccination Drive: RAM Ratings

Effective implementation of the COVID-19 vaccination initiative and containment of the pandemic with no further outbreaks are the key factors contributing to Malaysia’s economic recovery, according to RAM Ratings Services (RAM). RAM estimates Malaysia’s economic growth to come in at 5.0% for 2021, following a 5.6% contraction on 2020, the sharpest decline since 1998, mainly due to the spread of COVID-19.

Why it matters?

Malaysia has already implemented several initiatives including movement restrictions and various stages of lockdowns, which have taken a toll on the economy. In 2020, demand for non-essential goods and services plunged, leading to significant job losses and financial strain for several businesses. Further, as of end-January...