BUSINESS

JOHOR TO CHART K-SHAPED ECONOMIC RECOVERY

26/11/2020 01:37 PM

JOHOR BAHRU, Nov 26 -- Johor is expected to chart a K-shaped economic recovery by next year following the effects of a gloomier economic environment, as well as falling demand due to its dependency on the Johor Bahru-Singapore cross-border dynamic activities.

Acknowledging this matter, Johor Menteri Besar Datuk Ir Hasni Mohammad said the state's economic recovery path is still a long way following the impact of the third wave of the COVID-19 pandemic and as the country's borders are not yet fully opened.

“Johor should acknowledge that its economy will experience a recovery curve in form of K-shape (and see) where certain industries will show recovery while other industries will continue to slump.

"For instance, the tourism and aviation sectors continue to be badly affected at present, in contrast, the agriculture, manufacturing, trade, retail business, financial services, and information and communications technology are and will continue to chart significant recovery,” he said.

He said this when presenting the Johor Budget 2021 at the third meeting of the 14th Johor State Assembly here, today.

Hasni, who is also the Benut state assemblyman, also said the K-shaped recovery was also apparent among the community.

“For example, the B40, M40 groups, those who are self-employed and even those who had lost their income sources...their livelihoods are directly affected and the economic equality gap will be more noticeable," he said.

However, Hasni said Johor is expected to achieve an economic growth of between 6.6 per cent and 7.6 per cent next year depending on five factors including the efficiency of the state government in containing the new pandemic wave.

The other factors are the opening or continued closing of international borders, economic recovery in Singapore, economic performance of Johor's trade partners, and policy as well as new injection from the Federal government.

“All these will form the backdrop and foundation that will show the importance of the Johor Budget 2021.

“Armed with our cooperation and earnestness (together) I believe Johor can achieve an economic growth of between 6.6 per cent and 7.6 per cent in 2021,” said Hasni.

Apart from that, the state's economic recovery will be driven by three agenda which form the catalysts to the recovery and sustainability efforts, namely Johor Food Security Agenda, Johor Digital Agenda and the establishment of the Johor Economic, Trade and Culture Office (JETCO) in Singapore, he said.

-- BERNAMA

 


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