PUTRAJAYA, 27 Jan 2021 (The Capital Post)- Department of Statistics of Malaysia (DOSM) has stated the Malaysian economy to remain in the pace of recovery in the monthly Leading Index (LI) shows slight growth, but the implementation of Movement control order (MCO) 2.0 may effect the momentum of the recovery.
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In a recent release of Malaysia Economy Statistics Review, Vol 1/2021, the chief statistician Dato’ Sri Dr. Mohd Uzir Mahidin stated that despite the pandemic negative effect on the economy of many countries, China’s economy grew rapidly by 6.5 per cent in the fourth quarter 2020, with the improving performance of exports and manufacturing sector, while U.S shows signs of economical recovery with Purchasing Managers’ Index (PMI) increased.
According to Uzir Mahidin, the UK’s PMI taken a contraction while second the state of emergency in Japan and Thailand also delay their road to economic recovery.
Adding to this, Dato’ Sri Dr. Mohd Uzir Mahidin said,”the recent statistics on merchandise trade export performance in November 2020 continued to show signs of recovery and it expanded to three consecutive months compared with the same months in the preceding year”.
Uzir Mahidin added, the export grew 4.3% in November 2020 while the imports declined by negative 9%, where the export mainly supported mainly by higher exports of merchandise to major trading partners, namely United States of America, followed by Singapore, China, Hong Kong and the European Union.
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The Industrial Production Index (IPI) declined 2.2 % in November meanwhile Wholesale & Retail trade declined by 1.2 % year-on-year due to the weak performance of Retail Trade which contracted 2.3 %.
He also stated that, Enhanced movement control order (EMCO) and Conditional movement control order (CMCO) in certain areas due to spike in Covid-19 cases have indirectly effected the unemployment rate which increased to 4.8%,which mainly effects the industries such as tourism, transportation and storage, as well arts and entertainments.
The chief statistician also added, the Small Medium Enterprises (SME) business focused on tourism would be largely effected due to the current MCO which restricts interstate travel.
“Fortunately, the assistance package of Perlindungan Ekonomi dan Rakyat Malaysia (PERMAI) has been implemented straightaway after the MCO 2.0 to ease people’s financial difficulties as well as maintaining economic resilience while the country face the spread of the COVID-19 pandemic.”, said Uzir Mahidin.- The Capital Post