He said there had been signs of recovery as the economy re-opened, noting the improved unemployment figures released by the statistics department.

According to the department, Malaysia’s June 2020 unemployment rate declined month-on-month to 4.9% from a record high of 5.3% in May 2020 as more sectors, including the services industry, reopened to revive the country’s economy while curbing the Covid-19 pandemic.

“Subject to a second lockdown, the sector will be normalised, with local consumption to be the growth driver for the country,” he told reporters after a closed session with retailers at the Sunway Pyramid mall yesterday.

Mustapa also said it was vital for Malaysians to support local producers as the tourism industry was still closed.

He said he expected further economic recovery in 3Q and 4Q, on par with Bank Negara Malaysia’s 2020 gross domestic product growth forecast of -3.5% to -5.5% after a contraction of 17.1% in 2Q this year.

Meanwhile, adviser for Malaysia Shopping Malls Association HC Chan said in July, some 90% to 95% of retail outlets had resumed operations with mall visitors hitting 80% of pre-Covid-19 levels.

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