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.
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.
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.