Economics
Emergency Declaration to Drag on Malaysia’s Economic Rebound
- Move frees government to act, but could deter investment
- Private consumption risks heavy toll from new stay-home orders
A sign for take-away is displayed outside a restaurant during a nationwide state of emergency in Kuala Lumpur, on Jan, 13.
Photographer: Samsul Said/BloombergThis article is for subscribers only.
The state of emergency declared this week allows Malaysia’s government to enact immediate laws to support the virus-battered economy, but could undermine investor confidence.
Greater powers under Tuesday’s decree could help the government implement concrete solutions to the country’s health crisis and economic downturn, according to analysts at CGS-CIMB. Prime Minister Muhyiddin Yassin said it would allow for ordinances to fight “economic sabotage, monopoly, and excessive price hikes.”