Floods, inflation and COVID-19 - Malaysians have had it rough

Things were rough for the Malaysian economy the past year.

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The government’s response to the COVID-19 crisis was made within a narrow fiscal space, though Kuala Lumpur did make valiant efforts to minimise the impact of the pandemic, which saw high infections, deaths and a public health system under severe pressure.

The government came out with a series of initiatives to provide support for a broad range of segments in the economy. These measures — termed Penjana, Prihatin, Permai and Permekasa+ — amounted to some RM380 billion (US$90 billion) in spending.

The main targets for these measures were micro-, small- and medium-sized enterprises, the informal sector and those in the bottom 40 per cent of household income.

The government’s relief packages were about 43.5 per cent of gross domestic product as of November 2021.