Malaysia will begin treating Covid-19 as an endemic disease in late October, the country’s Minister of International Trade and Industry, Mohamed Azmin Ali, said on Tuesday.
Covid would be endemic when the disease-causing SARS-CoV-2 virus becomes a permanent presence in the community and continues to circulate among people. Other endemic diseases include influenza, dengue, and malaria.
Malaysia has been struggling to tame an increase in daily cases of Covid-19, which led the government to impose several rounds of closures. Last month, the country’s central bank lowered its forecasts for 2021 economic growth from 3% to 4%, from 6% to 7.5% previously.
But Malaysia’s economy has remained resilient, with a recovery driven by better external demand and ongoing infrastructure projects, said Azmin, who is also a senior government minister.
“The accessibility and affordability of vaccines are key factors in ensuring a sustained economic recovery,” the minister told CNBC’s “Squawk Box Asia”.
More than 75 percent of Malaysia’s adult population is expected to be fully vaccinated by the end of October, Azmin said. Currently, according to official data, 88% of adults (or 63% of the entire population) have received at least one dose of Covid vaccine.
Health Minister Khairy Jamaluddin said last week that the Malaysian government will simplify some social distancing measures in the coming weeks to prepare for an endemic Covid phase. But facial masks will still be needed to limit the spread of the coronavirus, he added.
Global supply chains
In addition to Malaysia, Southeast Asian countries, including Indonesia, Thailand, Vietnam, and the Philippines, have experienced a resurgence of Covid-19 cases caused by the more transmissible delta variant.
Southeast Asia plays an important role in the global manufacturing supply chain, especially in semiconductors and key garments, said Joseph Incalcaterra, chief economist at ASEAN at HSBC.
Incalcaterra told CNBC’s “Squawk Box Asia” on Monday that Malaysia is the largest producer of semiconductors for automotive, with little supply. Fortunately, more manufacturing capacity in Malaysia is back online, the economist said.
“But if we look at Vietnam, which of course is a key producer of clothing, of different types of clothing, especially in the south of the country, this will have an impact for the next few weeks and months,” Incalcaterra said.
Vietnam has closed its city and largest business center in the southern city of Ho Chi Minh City. But the city could reopen economic activity in phases starting next week, Reuters reported.