KUALA LUMPUR: An additional injection of government funds may be needed to stabilise the country’s economy should a fourth wave of Covid-19 infections occur, economy minister Mustapa Mohamed said today.
“There are concerns about a fourth wave of the Covid-19 virus and at the same time, we hope that it will subside with the availability of vaccines,” he said today in a discussion on the economic prospects for 2021.
He said the government has not set any limit on the amount of the additional funds, as the priority is the people’s lives and employment.
“The available funds are from loans and there’s no limit, but at the same time, it does have an effect on the country’s fiscal deficit,” he said.
Malaysia’s fiscal deficit rose to 6% of gross national product this year, a drastic increase since the 2009 global financial crisis, because of the stimulus packages introduced by the government in the wake of the pandemic.
Mustapa said Malaysia will receive Covid-19 vaccine supplies by the first quarter of 2021, to hopefully stabilise the country’s economy.
The vaccine is anticipated to support the country’s economic recovery alongside the government’s efforts and strategies this year to stabilise the economy, he said.
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