MALAYSIA’S gross domestic product (GDP) for 2020 is expected to range between 3.2% and 4.2% due to the impact of the Covid-19 outbreak and global economic conditions, said Dr Mahathir Mohamad.

With the RM20 billion Covid-19 fiscal stimulus package announced today, the interim prime minister said the fiscal deficit target is also expected to stand at 3.4% as opposed to the initial target to narrow it down to 3.2% of GDP this year.

Prior to the outbreak, Putrajaya had projected a GDP growth of 4.5%.

“In 2003, Malaysia experienced a similar situation with the outbreak of the Severe Acute Respiratory Syndrome (SARS) that began in East Asia, (in which) tourist arrivals plunged regionally,” he told the press in Putrajaya today.

“That played a role in bringing Malaysia’s quarterly GDP growth down from 7.1% in the third quarter of 2002 to 4.6% in the same quarter a year later,” he added.

The comprehensive economic stimulus package announced then had helped the Malaysian economy recover to 6.5% in fourth quarter of 2003, he said.

Malaysia had announced an economic stimulus package of RM7.3 billion to mitigate the effects of the SARS outbreak then.

“The government is cognisant that the economic stimulus package cannot be successfully delivered by the government alone. Therefore, the government calls on the private sector to play its part to ensure the stimulus package is successful,” said Dr Mahathir.

“At the same time, the government calls on the people to remain steadfast, brave and diligent to prevail over the current challenges and emerge even stronger after this episode.”

He added that Putrajaya is committed to fiscal consolidation. – February 27, 2020.