Unemployment rates to spike in coming months; more businesses closing.

Business Close News Asia Today

Unemployment rates are likely to spike in the coming months, as businesses continue closing down in Malaysia.

Since the MCO was announced, a large number of businesses across the country (particularly in the retail and travel industry) have closed their doors, with many more closing down daily.

Unemployment rates to spike in coming months; more businesses closing. 13
Malls and retail outlets have been impacted severely by the pandemic.

In a statement by Bank Negara’s governor, Nor Shamsiah Mohd Yunus, she mentions that the pandemic will “severely” affect the country’s economic growth in the first half of 2020, given the sudden halt to nearly all country’s economic activities during the MCO.

She also mentioned that the unemployment rate will likely surpass the bank’s earlier forecast of 4%, which was predicted in April.

Bank Negara's Governor, Nor Shamsiah Mohd Yunus News Asia Today
Bank Negara’s Governor, Nor Shamsiah Mohd Yunus.

Despite the setbacks, she also mentions that the country’s economic growth could improve towards the end of the year, accelerating in 2021 as global trade restarts.

As of 15th May 2020, Malaysia has registered 36 new cases, bringing the total number to 6855.

Alfred Lee
Journalist at News Asia Today. I write about topics related to lifestyle and entrepreneurship in Asia. Feel free to reach out to me at alfred [at] newsasiatoday.com. Also a big time foodie.