KUALA LUMPUR, Feb 5 — RHB Research has maintained its 4.3 per cent forecast of Malaysia’s 2020 gross domestic product (GDP) growth despite the rising concern surrounding the 2019 novel coronavirus outbreak.
Although chances of the virus becoming a global threat are high, it said, swift action by world governments could contain the spread.
“Judging by the limited impact of the severe acute respiratory syndrome (SARS) to Malaysia’s GDP growth alongside BNM’s recent rate cut and potential pump-priming by the government, we believe the upside risks serve as a fair balance,” it said in a research note today.
If the current condition worsens, the effect of the health threat would merely shave off 0.2 per cent of the annual GDP growth, with the extent of the impact being more ascertainable in 1Q2020, it said.
Meanwhile, the government is reported to be re-evaluating the need for an economic stimulus package and ready to launch the measure to deal with the effects of the coronavirus. — Bernama
