Question

Examine the Covid-19 pandemic impact on Malaysia. Discuss the policies to address the impact with respect to poverty and inequality in the country.

Answer 1

Answer:
COVID-19 impact on Malaysia are as follows:

• Impact on Tourism : Tourism is one of the biggest source of income for Malaysia, its been hiot the hardest due to coronavirus. Due to lockdown tourism was almost shut for multiple weeks even after lockdown removal by many countries tourist numbers are really low which is affecting the tourism industry of Malaysia.
• Unemployment data increased in last quarter : Most of the businesses are impacted by coronavirus because of which many businesses started layoff people leading to increase in unemployment.
• Economic growth is impacted : Economic growth of the country is also highly impacted and projected to show neutral or slightly negative growth due to COVID-19 issues and decrease in demand because of that.
• Industries are showing negative growth : Even industries are also unable to function properly and are in constant pressure and are showing losses in their quarterly results.

Policies to address the impact with respect to poverty and inequality in the country are as follows:

• Fiscal policy and monetary policy changes to tackle coronavirus damage to economy : To increase the demand in the economy government and central bank of Malaysia should increase the liquidity in the market, by reducing the interest rate and providing more loans. As demand increases supply will increase and the whole cycle of economy will start functioning properly in few quarters.
• Announcement of stimulus package : To help economically poor people who are affected the most because of this, they should be given economic help in terms of stimulus package.
• Extra tax on rich person : To decrease the gap between rich and poor, government can impose extra tax on rich people which can be used in the uplifting of poor above poverty line.
• Government Expenditure : Government can increase expenditure on infrastructure projects which not only help in the development of the economy but provide employment to the youth and hence help in decrease unemployment as well.

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