First to announce a revised GDP number downwards.

If you have been reading, you may have noticed that Singapore is usually faster than many countries in many things. Property prices for example will also rise faster too. Thus, it is definitely prudent to say that whatever they anticipated may also happen here in Malaysia too. Recently, we have the Covid-19 (coronavirus) which has wrecked havoc in China and many other countries. Out of China, the country with the most Covid-19 infected patients would be Singapore. As at last count today, the number of infected has reached 77. (click to read)

Article in channelnewsasia.com Singapore’s Ministry of Trade and Industry (MTI) has forecasted the GDP growth for 2020 to be lower than last year’s 0.7% GDP growth. The major reason is because of the ongoing COVID-19 outbreak. Economic growth for 2020 is expected to come in at around 0.5 per cent, the mid-point of a new estimated range of between -0.5 per cent and 1.5 per cent. Previous forecast was between 0.5% to 2.5%.

Last week, Prime Minister Lee Hsien Loong warned that the ongoing COVID-19 outbreak will have a significant impact on the local economy for the next couple of quarters. In an earlier forecast, MTI said that 2020’s growth would be based on a modest pick-up in global growth and a recovery in the global electronics cycle. The COVID-19 outbreak has changed the earlier forecast. Please do read the very comprehensive Article in channelnewsasia.com

There are already some anticipation that the GDP growth forecast for 2020 will be lowered by the government. Already we could read some analysts revising their own GDP growth forecast for Malaysia downwards already. OCBC has now factored in COVID-19 and says that the GDP growth will be 4% for 2020. (click to read) Fitch Group is even more conservative and has predicted that due to COVID-19, Malaysia’s GDP growth will be 3.7% for 2020 (click to read).

Anyway, before any GDP forecast changes, our Finance Minister has announced that Malaysia will announce an economic stimulus due to COVID-19 next week. Earlier article here: Help is coming, industries and businesses please wait Perhaps this could be successful enough that the economy could maintain its course and achieve the earlier forecasted GDP? That’s 4.8% yeah. (click to read) As a Malaysian, of course I would also hope that we hit 4.8% or higher for 2020. Awaiting the details for stimulus…

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