Despite Malaysia struggling to keep its Covid-19 cases in check and failing at it, the PM’s office is confident it will be able to create a healthy investment environment in the country. Tourism is again off limits as of now.
There are intentions of encouraging existing investors to re-invest again in the country. The Prime Minister Tan Sri Muhyiddin Yassin was speaking over Malaysia’s growing business between them and Germany vis-a-vie investment in semi conductors. Within the manufacturing sector, the electronics industry tops the chart as the main contributor, as partially reflected in investments from international companies in Germany into Malaysia.
It is going to be a rough ride for Malaysia that is being desperately trying to get its feet back on the ground post the pandemic led lockdown. It has recently closed entry of foreign nations and its tourism industry has taken a major hit. But it is looking hopeful to reopening its borders to Singapore soon. It would all be possible as the Malaysian health ministry looks at doubling the capacity for Covid-19 swab tests for travelers under the reciprocal green lane and periodic commuting arrangement schemes.
According to July indicators, the economy is showing signs of recovery. Exports increased by 3.1 percent year-on-year, while sales of passenger cars and commercial vehicles also rose by 27.3 percent and 44.8 percent respectively during the month compared to June 2020. With the contraction of the GDP having gradually reduced 28.6 to 19.5 percent in May, signs of recovery are evident.