The Economic Impacts of the COVID-19 Pandemic in Malaysia

Teo, Min Err (2023) The Economic Impacts of the COVID-19 Pandemic in Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

In December 2019, SARS-CoV-2 or Covid-19 originated in Wuhan, China, and by March 2020 had proved as a pandemic that had caused enormous disruption in numerous nations. Covid-19 pandemic has spread over worldwide and affected to global economy as well as Malaysia. Malaysian economic growth has slowed to a 10-year low as concerns over Covid-19 mount. The main objective is to examine the economic impacts of the Covid-19 pandemic in Malaysia by using yearly data from 1982 to 2021. This study used Real Gross Domestic Product (RGDP) as the dependent variable. The independent variables that used in study are real health expenditure (RHE), unemployed person (UNEMP_P), death rate (DEATH), total exports and imports of goods and services (XM), inflation rate (INF), and total number of Covid-19 cases in Malaysia (COVIDM_DUM). The Autoregressive Distributed Lag (ARDL) approach and Error Correction Model based on ARDL were used to examine the cointegration between the variables. The results showed that RGDP are significantly affected by Covid-19 pandemic. The empirical findings of this study showed that the variable XM and DEATH have a long-run relationship on RGDP in Malaysia, while the variables RHE, UNEMP_P and INF have not. In the short run, the relationships between RGDP, RHE, UNEMP_P, and XM are positive, while the relationships between RGDP, DEATH, and INF is negative. The policy recommendations are place a higher priority on spending money on human capital development, creating a safe and secure atmosphere for corporate growth, and strengthen global technological collaboration and work together to address issues relating to human health