Malaysia needs trade-based solutions

“To stay afloat, some companies have had to resort to increased debt to meet their payment obligations,” Zaylani said at the launch of the World Bank’s Islamic Trade Finance Report yesterday.

KUALA LUMPUR: Malaysia critically needs trade-based solutions to ease liquidity constraints brought about by the Covid-19 pandemic, says Bank Negara assistant governor Adnan Zaylani Mohamad Zahid.

He said the pandemic, which led to subdued domestic demand and stringent containment measures, had resulted in a liquidity squeeze among Malaysian businesses, particularly the small and medium enterprises (SMEs).