Influence of COVID-19's active cases on Malaysia's key economic performance indicators

Mustaffa, Abd Hadi; Abidin, Nur Balqishanis Zainal; Ahmad, Noryati; Ogundare, Emmanuel Abiodun

doi:10.24191/jeeir.v9i1.12736

Cited by 5 publications

(6 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In addition, the MCO harm the bottom line of the firms, then causing the stock prices to plunge at the earlier stage of COVID-19 outbreak (Chia et al, 2020). The previous findings also shown that the daily COVID-19 cases in the past posed a negative effect on the Malaysian stock market activities (Gamal et al, 2021) and other economic performance indicators (Mustaffa et al, 2021). In contrast, the death cases do not pose any significant impact on the Malaysian stock market movements (Chia et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 91%

Is the Stock Market Immune to COVID-19? Evidence from Malaysian Stock Market

Ming¹,

Soon²,

Jais³

2022

IJARAFMS

View full text Add to dashboard Cite

This study aims to examine the immunity of the Malaysian sectoral indexes to the COVID-19 related news in 2020 and 2021. The findings indicated that the market volatility of the Malaysian stock market has reduced from 2020 to 2021. The results also showed that market volatility and Brent oil price movements had a significant impact on the majority of the sectors. The daily COVID-19 confirmed cases also had a greater impact than the daily COVID-19 death cases towards the movements of Malaysian sectorial indexes. Investors are recommended to monitor the information related to the COVID-19 pandemic. Any dramatic changes in COVID-19 confirmed cases and death cases might cause another round of volatility in the Malaysian stock market. Risk-averse investors are recommended to pay attention to the consumer product and construction sectors. Lastly, REIT, technology, and healthcare sectors shall be another sector to be targeted after the reopening of economic activities.

show abstract

Section: Literature Reviewmentioning

confidence: 91%

Is the Stock Market Immune to COVID-19? Evidence from Malaysian Stock Market

Ming¹,

Soon²,

Jais³

2022

IJARAFMS

View full text Add to dashboard Cite

show abstract

“…Feng, Yang, Gong, and Chang (2021) indicated that an increase in COVID-19's confirmed cases does increase exchange rate volatility significantly. Mustaffa, Abidin, Ahmad, and Ogundare (2021) found that COVID-19 had a significant impact on the unemployment rate, GDP, CPI, foreign exchange rate, and equity price in Malaysia. Narayan, Devpura, and Wang (2020) showed that COVID-19 had caused the depreciation of the Yen against the US dollar and brought profits from Japanese stocks' returns.…”

Section: Existing Studiesmentioning

confidence: 99%

How and What Influences from COVID-19 Have Impacted Stock Prices and Exchange Rates? the Case of Japan

Kurihara

2021

IJAEFA

View full text Add to dashboard Cite

This study reports the empirical analyzes of the COVID-19 on stock prices and exchange rates of Japan. Newly confirmed cases and death cases have significantly positive impacts on Japanese stock prices. One reason is that Japanese stock prices recently move together with U.S. stock prices. Under this situation, the U.S. could recover from the damage of COVID-19 ahead of other countries and its stock prices have increased hugely, so the effects on Japanese stock prices have been quite large. The rising of the U.S. stock prices have had a big influence so as to deny the adverse effects by COVID-19 in Japan. The other reason is that although the stock prices of tourism, food service, and so on were damaged in Japan, other industry stock prices have been increasing. The coefficients of declaration of the state of emergency/anti-infection measures are positive which denotes that the stock market may have taken the measure favorably. However, they are positive, but they are also insignificant. For the exchange rates, the newly confirmed case is significant and positive which means that it promotes depreciation of the Japanese Yen. It seems natural because if the situation of COVID-19 becomes serious, market participants consider investment in Japan as risky. Finally, both of the cases of confirmed cases and death cases of COVID-19 are negatively and significantly related with the flow of people. The coefficient of declaration of the state of emergency/anti-infection measures is negative, however, they are not significant to the flow of people.

show abstract

“…Many economists and academicians argued that the current outbreak would cause a short-term fiscal impact and long-term economic impact on the nation worldwide (Shang et al, 2021). The COVID-19 outbreak has required nearly all countries to implement movement restrictions or lockdowns that have resulted in the reduction in demand and supply (United Nations Industrial Development (UNIDO), 2020; Mustafa et al, 2021). This reduction in demand and supply has caused a recession within the economic system.…”

Section: The Impact Of Serious Diseases On Economic Structurementioning

confidence: 99%

The Impact of COVID -19 to the Malaysian Social-Economic and Islamic Banks, and the Role of Maqasid Shariah

Zain¹,

Ibrahim²

2022

IJSSR

View full text Add to dashboard Cite

The COVID-19 outbreak is a global health issue that has hit countries around the globe. This pandemic has further been detrimental to the world’s socio-economies. The many restrictions implemented to curb the spread of the virus, such as the Movement Control Order (MCO), have resulted in socio-economic constraints that harm the commercial activities of individual businesses as well as corporate organisations. The MCO has also been alleged to negatively affect people’s mental health due to its impact on decreasing household income and exacerbating poverty. The banking sector is not immune to the pandemic’s effect, as reflected in its financial performance. As a result, the Malaysian government responded by announcing stimulus packages for businesses and retail sectors. At the same time, the financial institution through the Bank Negara Malaysia (BNM) remains committed to helping households and businesses. Thus, this paper aims to discuss the impact of COVID-19 on the performance of Islamic banking institutions from a socio-economic lens by comparing the first and second-quarter profits of the years 2019 and 2020. This study also looks into the roles of Maqasid Shariah and its application during the pandemic. Content analysis was applied as a tool for data collection from related websites, news and quarterly financial reports to analyse the performance of the banks. Analysis of the quarterly financial reports found that bank profit demonstrated a steep decline during the second quarter of the said period, constant with the middle of the MCO time frame. The study also found that the analysed banks reported non-financial performance reflected by Maqasid Shariah measures. This finding indicates that Islamic banks are responding to the need of society to ease the burden of adverse financial impacts on customers. Therefore, this research implicates that various parties have played their role and continue to do so in mitigating the consequences of COVID-19. This role emphasises the value of achieving Maqasid Shariah to maintain societal wellbeing and in helping the country implement sustainable growth plans. Accordingly, this study can function as a guide and serve as a lesson to all parties in reducing the effect of the current pandemic and any other shocks, including natural disasters and the financial and economic outcomes of the recession.

show abstract

Influence of COVID-19's active cases on Malaysia's key economic performance indicators

Cited by 5 publications

References 24 publications

Is the Stock Market Immune to COVID-19? Evidence from Malaysian Stock Market

Is the Stock Market Immune to COVID-19? Evidence from Malaysian Stock Market

How and What Influences from COVID-19 Have Impacted Stock Prices and Exchange Rates? the Case of Japan

The Impact of COVID -19 to the Malaysian Social-Economic and Islamic Banks, and the Role of Maqasid Shariah

Contact Info

Product

Resources

About