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HomeNewsSurge in Covid-19 cases will overrun Malaysia’s healthcare system, Fitch unit warns

Surge in Covid-19 cases will overrun Malaysia’s healthcare system, Fitch unit warns

Fitch Solutions also warned of a bleak economic outlook for the country going ahead with the rise in infections. — Picture by Firdaus Latif
Fitch Solutions also warned of a bleak economic outlook for the country going ahead with the rise in infections. — Picture by Firdaus Latif

KUALA LUMPUR, Feb 1 — With a daily average of more than 2,300 new Covid-19 cases seen in January, the public healthcare system is at risk of being incapacitated with the current surge in infections, Fitch Solutions Country Risk and Industry Research has warned.

The Fitch Group unit, in a report, also projected that the movement control order (MCO) would most likely be extended again.

“Malaysia’s daily case load has averaged about 2,319 since the beginning of the year and set a new record of 3,027 on January 8 2021.

“This compares to the average of 149 and peak of 217 in the month between mid-March and mid-April 2020, the last serious episode of the outbreak in the country.

Malaysia also reported a new daily record of 5,728 new infections on Jan 30.

“The surge in number of Covid-19 patients will paralyse the existing capacity of the healthcare system,” read the report.

The report noted how similar enforcement measures as those seen in Q2 in 2020 during the first MCO has been re-implemented, measures which lead to a 17.1 per cent year-on-year economic contraction for that quarter last year.

As such, Fitch Solutions also warned of a bleak economic outlook for the country going ahead with the rise in infections, while lowering its expansion forecast of the country’s economy.

It also projected added pressure towards spending trends with businesses suffering from the closures during the MCO, compounded with less public assistance offered this time around.

“We have revised down our forecast to 10.0 per cent, from 11.5 per cent previously to account for the slower recovery due to muted private consumption as employment and wages are likely to once again come under intense pressure, this time with even less scope for fiscal support, given that government finances are already strained and close to the raised debt limit of 60 per cent of GDP.

“A decline in GDP growth will further negatively impact the number of funds available needed to strengthen Malaysia’s healthcare system” it added.

Checks showed that in the 31-days of January alone, a total of 101,949 new Covid-19 infections were reported nationwide, about half of the country’s cumulative number of cases which stands at 214,949.

During the same period, a total of 289 Covid-19 related deaths were reported, making up about 37 per cent of fatalities nationwide currently at 770 deaths.

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