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Malaysia can finance the stimulus to protect and boost productive capacities

Asia Analytica
Asia Analytica • 9 min read
Malaysia can finance the stimulus to protect and boost productive capacities
But these are not ordinary times. Even a hugely expansionary budget will not be out of sync with the rest of the world.
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Over the last two weeks, we presented data showing resilience in domestic consumption and the underlying strength in the balance sheets for households and businesses as well as overall stability of the Malaysian banking system.

Our objective was to highlight the fact, supported by hard data, that the situation is not as bleak as the headlines would suggest.

For sure, the economy is going through a huge shock brought about by the Covid-19 pandemic. This is evident not just in Malaysia but the rest of the world as well. The quick actions of governments and central banks have mitigated what would certainly have been massive damage to the global economy.

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