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aws试用账号(’s Analytics upbeat on AsiaPac, including Malaysia as travel curbs ease, stronger domestic demand



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Brighter outlook for Malaysia, says Steve Cochrane, chief Apac economist at Moody’s Analytic as Malaysian factories ramp up production and benefits from commodity exports.

KUALA LUMPUR: Moody’s Analytics is more positive on Asia-Pacfic economies as movement controls ease while there is stronger domestic demand in these countries, also pointing outfactories in Malaysia ramp up production and benefits from commodity exports.

In its outlook “The Apac Outlook: Asia’s Reopening”, it said easing of mobility restrictions will raise demand for local goods and services throughout the region.

“And the ability to fully staff manufacturing facilities will allow foreign trade to continue to provide a foundation for the region,” according to the report, authored by Steve Cochrane, chief Apa c economist at Moody’s Analytics.

“This will help ease supply chains in the region, for example, as electronics and auto parts plants ramp up production in Malaysia and Thailand, with supplies of consumer goods starting to flow again from Vietnam’s many industrial parks.

“But it may take time, particularly in Vietnam, for migrant workers from rural areas to be comfortable returning to the urban production centers.

“Such a rebound is behind India’s current recovery, where the Delta variant peaked in the second quarter. Industrial production has broadly recovered since July and production through September appears to have regained all that it lost during this second wave of Covid-19,” he said.

To recap, Cochrane said the Delta wave of Covid-19 is allowing an easing of movement controls and stronger domestic demand, it said as the AsiaPac economy is coming out of an extremely weak third quarter.

The 3Q, he said, was weighed down by the combined effects of mobility restrictions to contain the Delta variant and the resulting supply-chain disruptions and weak domestic demand.

International travel remained constrained as well throughout much of the region, particularly in the “zero-Covid policy” countries Australia, China, New Zealand and Singapore.

However, Cochrane said the Delta variant wave has now subsided significantly across all of Asia, and most importantly in Southeast Asia, except for Singapore.

All countries are easing mobility restrictions, at least for vaccinated persons, and vaccination rates are rising everywhere.

Google mobility indexes across the region are now back to their mid-April levels prior to the arrival of the Delta variant.

Global trade and travel

“Commodity exports will also help drive the region’s producers in the fourth quarter and into next year. Crude oil, palm oil, coal and iron ore, among others contribute to stable trade balances in Indonesia and Malaysia,” he said.

Cochrane said further, international travel is finally beginning to open in some countries. Singapore is opening 10 vaccinated travel lanes providing quarantine-free travel with Europe, North America and South Korea for vaccinated travelers.