Unexpected turn in fight against Covid could hurt economy

Health Ministry frontliners ready to vaccinate in Maran. - Bernama pic

KUALA LUMPUR: The unexpected turn of events in the fight against COVID-19 -- namely the sharp resurgence of cases -- could hurt Malaysia’s economic fundamentals, especially when currency movement is sensitive to negative newsflows, said Public Investment Bank today.

The investment bank said the headwind is expected to persist in the third quarter (Q3 2021) before receding in Q4 2021 as the region achieves herd immunity after doubling its efforts to inoculate the population.