MAF603 Corporate Finance: International Finance Economic Impact of the Pandemic COVID-19

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Do You Know COVID-19: Impact on Malaysian Financial Institutions? According to Our Experts Corporate Finance (MAF603): Malaysia Financial Economic Impact of the Pandemic COVID-19?

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These headlines are only some of various discussions on the impact of COVID-19 on the global foreign exchange market. The pandemic has hit hard on the global economy and has posed tremendous risk to even the most advanced economies leading to market volatility as the virus evolved throughout the globe. Countries who manage to contain the spreading of the virus are often rewarded with a stronger economy while those with rising cases see their currency weaken including Malaysia Ringgit. This pandemic will have intensely damaging effects on both the Malaysian macro economy as well as on the economic welfare of the Malaysian.

 

Required:

 

a).  The impact of COVID-19 on every part global economy can be divided into 3 Identify these categories. (6 marks)

b).  Discuss the 2 main sources of economic damage in Malaysia amidst the pandemic COVID-19. (6 marks)

c).  “The ringgit depreciated to its weakest level against the US dollar at 2957 so far today after the US dollar strengthened on demand for haven currencies at a time when the Covid-19 pandemic….”

Explain the impact of weaker Ringgit Malaysia to Malaysian economy.  (4 marks)

d).  Acknowledging the significant economic impact of the pandemic COVID-19, Malaysia adopted several comprehensive approaches which include the deployment of fiscal, monetary, financial, and other relevant measures during the crisis to support the growth of Malaysia Gross Domestic Product (GDP).

Differentiate between the objectives of fiscal injection approach and monetary approach. (3 marks)

e).  Recovery in the domestic economy is expected to continue in 2021. However, with the recent escalation in COVID-19 cases and further rounds of containment measures, there is highly uncertain risk in the Malaysia’s growth projection, discuss your perspectives on the Malaysia’s export and import growth in 2021.  (6 marks)

(TOTAL: 25 marks)