Malaysia unveils 3.7 billion USD package

The Government of Malaysia has recently unveiled its 3.7 billion USD package. The country has announced about this package in order to help the economy to recover from the COVID-19 pandemic effect.

Highlights

  • This announced package equals to 1.1% of GDP of Malaysia.
  • It has been announced in the backdrop of struggle that the country is facing in order to curb the third wave of COVID-19 infections.
  • The 3.7 billion USD package includes the cash support to the poor, wage subsidies and tax breaks.
  • With the help of the package, the Malaysian Government will also implement twenty-two new initiatives.
  • Malaysian Government had launched four such economic stimulus packages. The four packages amount to 73.2 billion USD which stands more than 20% of the GDP of the country.

Why this package has been announced?

The Malaysian government has announced the 3.7 billion USD package for the understated purpose:

  1. To combat third phase of COVID-19 pandemic.
  2. For the welfare of people of Malaysia.
  3. To provide support to the business continuity of the country whose businesses got impacted due to several lockdowns.

Malaysia

This Southeast Asian country is a federal constitutional monarchy that comprises of thirteen states and three federal territories. These states and federal territories are separated by the South China Sea into two regions called the Peninsular Malaysia and Borneo’s East Malaysia.

  1. Peninsular Malaysia: It has a land and maritime border with Thailand and maritime borders with Vietnam, Singapore and Indonesia.
  2. East Malaysia: It shares the land and maritime borders with Brunei and Indonesia. It also has maritime border with the Philippines and Vietnam.

The capital city of the Malaysia is Kuala Lumpur which is also the largest city.  The government seats in Putrajaya. The country is the world’s 43rd-most populous country.

Economy of Malaysia

It is an open state-oriented and newly industrialised market economy. The country exports natural and agricultural resources. Petroleum is its major export item. The country was once the largest producer of tin, rubber and palm oil in the world. It still stands at number one in terms of producing the Palm Oil. The country is also the second largest palm oil exporter in the world.  The International Monetary Fund tags the country as the sixth largest economy in the Southeast Asia.

Written by IAS POINT

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