Prof Dr Yeah Kim Leng said Malaysia is set to benefit from better external demand, especially from advanced nations such as the US and China.
Prof Dr Yeah Kim Leng said the higher petroleum revenue will allay concerns over possible revenue shortfall and wider fiscal deficit.
Prof Dr Yeah Kim Leng said we will see an increase in exits and entries by multinational corporations.
Prof Dr Yeah Kim Leng said the quicker the third Covid-19 wave is brought under control, the faster it will be for the recovery in domestic spending and export demand.
Prof Dr Yeah Kim Leng said leading indicator (Leading Index) which points to sustained recovery momentum, is encouraging
Prof Yeah expects GDP to contract in 3Q, by a low single digit.
Prof Yeah provides commentary on a post-moratorium economic relief scenario within Malaysia's economy.
Prof Yeah said revenue diversification is one of several major structural issues facing the Malaysian government.
Prof Yeah said it was too early to withdraw expansionary fiscal support as the country was facing the third wave of the pandemic.
Prof Yeah said government support in the form of wage subsidies extension, access to funds and guarantees, and various reliefs to low business costs would be welcomed, especially by large and mid-sized firms that are considering downsizing, relocating or exiting.