Adversely Affected Economic Sectors Show Signs of Recovery
Malaysia’s three main economic sectors which were severely affected by COVID-19 pandemic shows definite signs of recovery. The country is optimistic that these sectors mainly – Agriculture, Construction, and Manufacturing, will gradually recover.
The resumption of government projects has allowed many construction companies in the private sector to resume operations during trying times.
What About the Remaining Sectors?
The pandemic has badly hit sectors like retail, tourism, and other professional services. Despite domestic tourism’s slight improvement, it will be difficult for this sector to fully recover without the reopening of international tourism.
Unemployment Rate Recovery
Beyond the positive recovery in specific economic sectors, Malaysia has also seen a rise in its employment front. In July 2020, the unemployment rate was registered as 5.3% at a national level and expected to improve moving forward.
Sarawak Focused on Digital Economy
Sarawak’s state government will be focusing on environmental sustainability and digital economy as these sectors are the foundation of the state’s development. The government has offered incentives and packages worth RM2.5 billion to help Small and Medium-sized Enterprises (SMEs) and people in the B40 group.
Additionally, the government has plans to develop cross-border trading between Sarawak, Brunei and Indonesia. This cross-border trading will reap in economic benefits when Indonesia relocates its capital city. The government is also confident that the state’s investment sector will rapidly increase due to foreign investments from Japan and China companies.