Singapore’s Economic Contraction Could Have a Ripple Effect on Malaysia’s Economy

Economists have suggested that an economic recovery in the second half of 2020 appears unlikely for Malaysia, if Singapore experiences a significant economic downturn. This was suggested after Singapore forecast its Gross Domestic Product (GDP) to decline between 4-7% in 2020, as opposed to the earlier prediction of 1-4% made in March 2020, possibly marking Singapore’s worst recession to date.

According to former World Bank Economist, Lim Teck Ghee, an economic downturn in Singapore is expected to have a worsening impact on Malaysia’s employment and also across the entire range of linkages between the two countries including investment, trade, manufacturing, travel, tourism, retail, services, as well as the e...