Towards the end of 2024, most countries are seen to be beginning to shift towards a more loose monetary and fiscal policy.
Interest rates began to be lowered to offset the risk of economic decline and price stability.
Recently China announced to implement interest rate cuts and also plans to inject money supply to major banks in an effort to restore the current economic performance.
Economists believe that China's actions will also indirectly benefit Malaysia.
Economist and assistant research manager of IDEAS Malaysia, Doris Liew said that China's property market support measures such as reduced down payment requirements and mortgage rates can help consumers to spend on other goods and services.
Thus, this is able to increase the potential demand for Malaysian exports including food products in addition to increasing income in the tourism sector.
Tourists from China are in the top 5 list of visitors to Malaysia for the period from January to June, with a total of 1.44 million tourists recorded.
According to Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid, the economic recovery of China, which is Malaysia's main trading partner, will have a positive effect.
This includes the tourism, manufacturing, palm oil, oil and gas sectors.
