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In this kind of event, the GDP growth number is the last thing that should be concerned. Why?
Thread: https://twitter.com/business/status/1323113129983823872
Thread: https://twitter.com/business/status/1323113129983823872
1. The poor can't buy enough food. Children are dropping out of school. https://www.malaymail.com/news/malaysia/2020/10/30/poor-kl-students-dropping-out-of-school-at-an-alarming-rate-amid-outbreak-n/1917791
2. People are unemployed and will remain unemployed for a very long time since SMEs are not hiring. https://www.freemalaysiatoday.com/category/nation/2020/10/29/nearly-90000-jobs-lost-this-year-says-socso/
3. Companies are desperate and have to restructure their business models. Eg: Even hotels now are offering mobile working. https://www.malaysiakini.com/news/549028
It's easy to complain, yet there are many solutions for this. Here is what I have in mind:
1. Deposit cash to bottom- and mid-income households until December 2021. That will at least pay the bills and food.
1. Deposit cash to bottom- and mid-income households until December 2021. That will at least pay the bills and food.
2. Accelerate digitalization for micro and SMEs. In the future, instead of consumers go to the products, the products will go to consumers.
Forecasting GDP for 2021 is tough, given the uncertainty that we're facing. But it shouldn't be a consensus benchmark to see how the economy is doing. Sure, 8 percent looks HIGH since our average growth for the past decade is around 4-5%.
But let's face it, it's mainly because of the low base effect in the second quarter of 2020.
