COVID 19: the impact of government policy responses on economic activity and stock market performance in Malaysia
The exponential spread of the coronavirus in Malaysia has caused a significant majority of the economic activities to cease, resulting in poor stock market performance. This pandemic situation has in turn prompted the government to introduce policies to restart and improve economic activity and...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2021
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| Online Access: | http://journalarticle.ukm.my/17276/1/jeko_55%281%29-9.pdf |
| _version_ | 1796932625320902656 |
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| author | Keh, Chia-Guan Tan, Yan-Teng |
| author_facet | Keh, Chia-Guan Tan, Yan-Teng |
| author_sort | Keh, Chia-Guan |
| collection | UKM |
| description | The exponential spread of the coronavirus in Malaysia has caused a significant majority of the economic activities to
cease, resulting in poor stock market performance. This pandemic situation has in turn prompted the government to
introduce policies to restart and improve economic activity and stock market performance. Hence, does the government’s
interference in attempting to control the outbreak of COVID-19 disease, play an important part in affecting the level of
economic activity and stock market performance? To resolve this doubt, the impact of government policy responses to
COVID-19 in the case of Malaysia was investigated. The sample period of the study was from 28 January 2020 till 29 May
2020, amounting to a total of 84 observations. The findings reveal that the responses taken by the government, such as
staying at home requirements, closure of workplaces and debt or contract relief for households, significantly affected both
economic activity and stock market performance in the country. Based on the results, these responses appear to have
significant policy implications, particularly in displaying that debt or contract relief for households have negative impacts
on the economic activities, but a positive impact on the stock market. |
| first_indexed | 2024-03-06T04:35:18Z |
| format | Article |
| id | ukm.eprints-17276 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:35:18Z |
| publishDate | 2021 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-172762021-08-06T02:58:49Z http://journalarticle.ukm.my/17276/ COVID 19: the impact of government policy responses on economic activity and stock market performance in Malaysia Keh, Chia-Guan Tan, Yan-Teng The exponential spread of the coronavirus in Malaysia has caused a significant majority of the economic activities to cease, resulting in poor stock market performance. This pandemic situation has in turn prompted the government to introduce policies to restart and improve economic activity and stock market performance. Hence, does the government’s interference in attempting to control the outbreak of COVID-19 disease, play an important part in affecting the level of economic activity and stock market performance? To resolve this doubt, the impact of government policy responses to COVID-19 in the case of Malaysia was investigated. The sample period of the study was from 28 January 2020 till 29 May 2020, amounting to a total of 84 observations. The findings reveal that the responses taken by the government, such as staying at home requirements, closure of workplaces and debt or contract relief for households, significantly affected both economic activity and stock market performance in the country. Based on the results, these responses appear to have significant policy implications, particularly in displaying that debt or contract relief for households have negative impacts on the economic activities, but a positive impact on the stock market. Penerbit Universiti Kebangsaan Malaysia 2021 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/17276/1/jeko_55%281%29-9.pdf Keh, Chia-Guan and Tan, Yan-Teng (2021) COVID 19: the impact of government policy responses on economic activity and stock market performance in Malaysia. Jurnal Ekonomi Malaysia, 55 (1). pp. 1-11. ISSN 0127-1962 https://www.ukm.my/fep/jem/content/2021-1.html |
| spellingShingle | Keh, Chia-Guan Tan, Yan-Teng COVID 19: the impact of government policy responses on economic activity and stock market performance in Malaysia |
| title | COVID 19: the impact of government policy responses on economic activity and stock market performance in Malaysia |
| title_full | COVID 19: the impact of government policy responses on economic activity and stock market performance in Malaysia |
| title_fullStr | COVID 19: the impact of government policy responses on economic activity and stock market performance in Malaysia |
| title_full_unstemmed | COVID 19: the impact of government policy responses on economic activity and stock market performance in Malaysia |
| title_short | COVID 19: the impact of government policy responses on economic activity and stock market performance in Malaysia |
| title_sort | covid 19 the impact of government policy responses on economic activity and stock market performance in malaysia |
| url | http://journalarticle.ukm.my/17276/1/jeko_55%281%29-9.pdf |
| work_keys_str_mv | AT kehchiaguan covid19theimpactofgovernmentpolicyresponsesoneconomicactivityandstockmarketperformanceinmalaysia AT tanyanteng covid19theimpactofgovernmentpolicyresponsesoneconomicactivityandstockmarketperformanceinmalaysia |