This is positive for the domestic economy as the Klang Valley is estimated to contribute around 40% to Malaysia’s GDP. In addition, interstate travel and tourism activities have been allowed to resume as the vaccination rate for adults has reached 90%. We expect the government to continue with an expansionary budget for 2022 to support the recovery of the domestic economy. Malaysia’s corporate earnings growth peaked at the end of the first quarter of 2021 and has come down since then. As the vaccination rate continues to rise, we should start seeing a decrease in the number of Covid-19 patients requiring hospitalisation.
