Barely but it passes.
A few votes ahead - 111 against 108 - the Prime Minister of Malaysia, Muhyiddin Yassin, succeeded in having his budget for 2021 adopted in Parliament on Tuesday. The step is important, on the political level, because the leader, in power since March without being elected, has a very fragile majority, and on the economic front, to face the impact of the pandemic.
"Malaysia, which has long been governed by the same coalition of the UMNO party, has been experiencing political instability for many months",
comments Julien Marcilly, chief economist of the credit insurer Coface.
"This instability is likely to continue as long as there are no new elections",
supports Johanna Melka, of BNP Paribas.
- 6% drop in GDP forecast by the IMF in 2020
With this record budget, which provides for $ 80 billion in spending, the government is targeting a rebound between 6.5% and 7.5% in 2021, after a recession estimated at 4.5%, more optimistic than the IMF (6% ).
After a clear recovery in the second quarter, driven by exports
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