MalayMail-July 22

Middle-class households will experience a disproportionate fall to their income levels due to the Covid-19 pandemic, according to Fitch Solutions Country Risk & Industry Research. The Fitch Group unit cited official data to estimate that 210,000 households from the upper-middle income category (those with disposable incomes between US$25,000 and US$50,000) will slide down into the classes below due to the economic disruption caused by measures to contain the pandemic.

Pointing to its previous prediction of a 2.8-per cent contraction of the economy from 2019 and an expected spike in unemployment, Fitch Solutions also projected average disposable income for Malaysian households to shrink by 8 per cent, from RM102,460 last year to RM94,053 in 2020.

Read more at: https://www.malaymail.com/news/malaysia/2020/07/22/fitch-unit-covid-19-to-hit-malaysias-middle-class-hard-but-not-for-long/1886842