KUALA LUMPUR, Dec 5 — Malaysia’s economy is likely to remain largely protected from major disruption, as the country’s manufacturing base has been mostly unaffected by the recent floods and tropical storm Senyar, according to Moody’s Ratings.
Heavy rainfall from Senyar caused severe flooding in Kedah, Kelantan, Perak, and Terengganu. However, the manufacturing sector, mainly concentrated in Selangor, Penang, and Johor, escaped significant disruption.
“As much of Malaysia’s manufacturing sector, located largely in Selangor, Penang, and Johor, was spared from disruption, we do not expect a material impact on economic growth, although agricultural output is likely to weaken in the worst-affected states,” it said in a statement today.
Moody’s added that rehabilitation and reconstruction costs are expected to be covered within the existing Budget, keeping the government’s fiscal consolidation efforts on track.
