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Bloomberg
Malaysia will announce a stimulus package early next month as analysts slash their growth forecasts to account for the impact of the coronavirus outbreak.
The package will involve all ministries, Transport Minister Anthony Loke said. Bank Negara Malaysia Governor Nor Shamsiah Mohd Yunos earlier said the measure will seek to support those affected by the coronavirus, including tourism and manufacturing.
Fitch Solutions cut its 2020 growth expectation to 3.7%, from 4.5%, while RHB Research and Oversea-Chinese Banking Corp eased their forecasts to 4%. That’s far short of the government’s target for 4.8%. Economic expansion missed estimates in the fourth quarter in posting 3.6%, the slowest pace since 2009, and may ease further as measures to contain the virus’s spread stifle economic activity.
“We do acknowledge it will impact us, particularly in the first quarter,†Shamsiah said of the virus. She didn’t give an estimate, citing the unpredictable nature of outbreak.
The impact already is reverberating across Malaysia’s industries. Banks including CIMB Group Holdings Bhd and Malayan Banking Bhd are offering leniency on loan payments for customers affected by the coronavirus outbreak.