Tan Sri Azman Hashim
President
MASSA

2020 saw the global economy contract by 3.5%, whilst trade tapered by 9.6%. The Malaysian economy contracted by 5.6% in 2020, worse than previous projections, and the lowest since 1998 (-7.4%). Overall, Malaysia has adopted a comprehensive and complementary policy response to the crisis brought on by the COVID pandemic. A series of stimulus packages worth RM305 billion (20% of Malaysia’s GDP) was progressively unveiled to support the economy throughout the crisis. Supply-side policies, such as active labour market measures to promote workforce upskilling and reskilling, and initiatives to accelerate digitalisation, were implemented to sustain growth momentum and assist vulnerable segments of the economy. These played a significant role to cushion the economic impact of the COVID pandemic on the domestic economy and to support a growth recovery.

2021 began with an earnest expectation to continue its gradual and uneven journey of recovery following from the second half of 2020. Expectations for growth worldwide continue to be tempered by development surrounding the pandemic, especially the deployment of vaccines, current structural shifts in the economy and the degree of scarring in labour markets. Bank Negara had projected the Malaysian economy will rebound to between 6.0% and 7.5% in 2021. This projection will be dependent on the recovery in global demand and the gradual improvement in domestic economic activity.

Domestic monetary and financial conditions are expected to remain conducive with policy measures remaining in place to support the growth momentum while still assisting the vulnerable segments of the nation and its economy. These include the extension of measures introduced in 2020, the 2021 Budget, as well as the PERMAI and PEMERKASA assistance packages. For businesses, special grants, wage subsidies and the Targeted Relief and Recovery Facility are extended to firms in the services sector, which has been the hardest-hit sector.

The launch of the MyDIGITAL initiative under the Malaysia Digital Economy Blueprint, underpins the Government’s importance of digital transformation, and affirms the Government’s commitment to transforming Malaysia towards a technologically-advanced economy.

To complement this, MASSA will play its role to support our Government on this journey. With the benefits of going digital continuing to be explored by the Association, MASSA has reinvigorated its charge in Bridging the South-South Countries, by exploring alternative avenues of engagement with fellow developing nations which are mutually recovering from the pandemic.

Additionally, MASSA will increase its engagement and collaborative efforts with Government agencies, fellow business associations, both old and new, towards increasing the readily-available virtual knowledge-pool and awareness of incoming trends, changes and events for its membership and stakeholders. I do encourage members to attend these events and to evaluate their opportunities.

I appreciate the continuing support and cooperation of all members, especially my fellow Executive Committee members with your attendance and participation at our regular meetings and your generous contributions.

I also wish to thank all our supporters who have contributed valuable and insightful articles, and our sponsors of our Newsletters for 2020.

I wish everyone a happy, healthy and successful 2021, and a safe Hari Raya 2021.

Tan Sri Azman Hashim

President

MASSA