Friday, 18 Dec 2020 02:05 PM MYT
“All these are possible, thanks to receding headwinds from Covid-19 which is expected to be contained favourably in 2021,” it said in a note today. It said that Malaysia is also entering a significant junction in 2021, especially with the impending release of 12th Malaysia Plan in the first quarter 2021, and the possibility of a general election being called towards the later part of the year.
External risks may come from unexpected normalisation in advanced economies’ policy rates, a change in the United States’ foreign and business policies, a less-than-favorable second US-China trade deal and a spark of geopolitical risks that may increase the risk premium on oil.
It said a rise in inflation is also positive for the economy as it can boost capital investments which have suffered a marked downturn in the last one year.