Malaysia’s 2021 budget, Singapore consumer recovery

Malaysia’s 2021 budget, which was tabled before parliament today, reveals that the government is planning to keep fiscal policy much looser than we had originally expected. In response, we are dropping the 50bps of rate cuts we originally had pencilled in for next year. The recovery in Singapore’s consumer sector went into reverse in September. However, with other parts of the economy continuing to go from strength to strength, GDP is on track to return to its pre-crisis level by as early as the middle of next year.