Positive near future. U-shaped recovery for ASEAN + 3.

After a devastating Q1 2020 due to the COVID-19 pandemic, China’s growing again though nowhere near it’s previous GDP growth. It (China) grew by 3.2% in Q2 2020. This is after a minus 6.8% in Q1 2020. Do read the article here. While the growth is going to be affected by the world’s COVID-19 situation but what’s important is that the largest economy in ASIA is growing and this will be great help to ASEAN economies too including Malaysia. China remains Malaysia’s largest trading partner. (read here for the news)

Please do look at the projected GDP growth by AMRO below. China is expected to grow up to 7% in 2021. Malaysia is forecasted to hit a 5.7% GDP growth next year. (not the highest projection but certainly a healthy one). In fact the star of ASEAN for 2021 would be Vietnam and Singapore, both with a GDP growth forecast of 7%. Singapore is our 2nd largest trading partner and Vietnam is 9th. So, I am very happy to see their numbers too.

Of course when the economic recovery becomes stable, then the property market of Malaysia will also be moving up again; transactions at least even if price may follow later on. Yes, as a property investor, I do wish the market to move slowly. No need to move too fast year.

I do wish that COVID-19 will always be under control. No, I do not think there is any possibility to have zero COVID-19 cases anytime soon and I also do not think any vaccines will reach the country within 2020. So, everyone should just stay safe by putting on their masks and always make sure there’s enough physical distancing. This is the only way to keep the number of infections low so that we do not overwhelm the hospitals and causing even more problems. Happy understanding.

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