2019-Coronavirus : Counting The Cost
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Impact on The Malaysian Economy
- The novel coronavirus outbreak that was discovered in China late last month, has caused significant disruptions, with economists predicting a 0.1 to 0.3 percentage point cut in GDP growth for Malaysia in 2020, depending on its duration.
- Malaysia had also faced a similar situation 18 years ago when the SARS outbreak occurred. Tourist arrivals then dropped drastically by 20 %. However, the Coronavirus is predicted to have a worse impact on tourism this round, as China tourists account for a higher share of 12%, compared to 5% previously.
- Wholesale, retail, hotel and the restaurant sector dropped by around 2% in 2003 in conjunction with SARS. Retail sector growth was stagnant for 4 quarters, but recovered after a year.
- Despite the SARS outbreak, the Malaysian economy remained stable in 2003, posting 5.5% growth. The market conditions, however, were different then, with a stronger manufacturing and export sector that was not affected by a US-China trade war.