Bangkok, Nov. 6, (dpa/GNA) – Attempting to reverse huge economic losses wrought by pandemic-related restrictions, Malaysia’s government on Friday tabled a near-80-billion-dollar 2021 budget in parliament.
Announcing projected spending of 322.5 billion ringgit, which equates to about one-fifth of gross domestic product, the Finance Minister, Tengkyu Zafrul Aziz described the pandemic as an “unprecedented crisis” and predicted the country’s economy would shrink by 4.5 per cent in 2020.
The economy contracted by a record 17.1 per cent during the second quarter, coinciding with a March-May lockdown aimed at slowing the spread of the virus.
Though fiscal spending plans announced during the lockdown amounted to almost as much as the planned 2021 budget, more spending is needed, the government believes.
In a statement ahead of the budget announcement, Prime Minister Muhyddin Yassin said there is an “urgent need” for “substantial stimulus measures.”
The government believes its spending plans will help the economy rebound in 2021, projecting growth of 7.5 per cent.
Malaysia’s 222 members of parliament will vote on the budget in the coming days, with Muhyiddin’s government likely to fall if lawmakers reject the spending plans.
Malaysia’s King Abdullah rejected Muhyiddin’s attempt to impose a state of emergency last month in response to rising coronavirus case numbers, though the monarch called on politicians to rubber-stamp the budget.
Rules announced on Thursday were reversed at the last minute on Friday after opposition criticism was backed by several government-supporting lawmakers.
GNA