COVID-19 Immunisation Program will increase investment - Economist

KUALA LUMPUR: The National COVID-19 Immunisation Program will increase investment, thus making consumers spend more in the national market.

Bank Islam Malaysia Bhd's Chief Economist, Dr Mohd Afzanizam Abdul Rashid, said although it takes time, confidence in the program will help the stock market and open up to greater economic activity.

"So, I think from the real economic point of view, it is perhaps still slow in terms of reality in line with the vaccination process.

"However, the measures that have been announced on vaccines should help a lot in increasing confidence, so the economy will slowly move in line with the vaccine program and this will be followed by the assistance provided by the government in terms of economy and others.

"That will help a lot in supporting the economic recovery process that will be more competitive in the future," he said during a video conference on Sunday.

On Sunday, Malaysia Airlines flight MH604 with the Jalur Gemilang livery decoration carrying the first batch of Malaysian COVID-19 vaccine supplies safely landed at the Kuala Lumpur International Airport (KLIA) at 10 am.

The Pfizer-BioNTech vaccine was flown using an Airbus ‪330-300‬ aircraft operated by MABkargo Sdn Bhd (MASKargo) from the Pfizer plant in Belgium, with the flight carrying the vaccine departing from Puurs and transit at Leipzig Halle Airport, Germany.

In the meantime, said Dr Mohd Afzanizam, this year's economy is expected to be better than 2020.

However, it is clear that it depends on the economic process itself as well as the number of pandemic infections that will affect the momentum of economic recovery.

Earlier, Dr Mohd Afzanizam said the global economic uncertainty following the COVID-19 infection was expected to drive Bank Negara Malaysia (BNM) to reduce the Overnight Policy Rate (OPR) up to 25 basis points (bps).

He said, although the decrease of 1.75 per cent is the lowest rate in the history of the country, it is necessary to ensure that the economy can be driven even better.