Insight - Economy needs strong booster dose from budget

Lee Heng Guie: We reckon that the worst of economic output contraction is behind us as the incoming high frequency data continued to mend gradually from the historic slump.

The economy needs a strong booster dose from the upcoming budget since considerable risks remain that may temper the early signs of stabilisation and recovery.

Budget 2021 on Nov 6 will be presented at a time when the economy is still reeling from the Covid-19-induced worst economic contraction of 17.1% year-on-year (y-o-y) in the second quarter (2Q 2020).