Earlier today, it was reported that the economy contracted 5.6%, its worst performance since 1998.

In a statement, finance minister Tengku Zafrul Aziz said the large-scale rail projects were among the priority measures Putrajaya was considering, along with strengthening the country’s revenue base by regulating the shadow economy.

The shadow economy, he said, was worth some RM300 billion in 2019 and its regulation would better ensure the protection of informal workers.

“(Another measure is) improving human capital policy to ensure our talents are ready for the future, in preparation for challenges in the Digital Age.”

He added that the government would also build capacity along the whole supply chain of certain sectors, including agricultural technology, education and artificial intelligence.

Tengku Zafrul said Putrajaya was also looking to implement a medium-term revenue strategy.

He said the 5.6% contraction was a better performance than projections by international organisations such as the International Monetary Fund (which had predicted -5.8%), the World Bank (-5.8%) and the Asian Development Bank (-6.0%).

Tengku Zafrul said the second movement control order (MCO 2.0) had been less restrictive and would have a lesser impact on the economy than its previous iteration.

He also said the various initiatives put in place by the government in the national budget and the Permai package would mitigate the impact of MCO 2.0

“The government is also confident that the systematic and effective implementation of the national Covid-19 immunisation programme will encourage the reopening of various economic sectors, restore consumer sentiment, as well as boost Malaysia’s economic growth and resilience.”