Prime Minister Tan Sri Muhyiddin Yassin Said that a special focus on the sustainability agenda will be included in 2021’s budget. The world needed a wake-up call as he says. Every country needed to rethink the development plan for the future and Covid-19 helped that to happen easily. The world is thinking about planet earth’s health and an improvement. We, humans, need to have a better relationship with the planet and we need to build it back. Due to the fact that during the pandemic everyone was at home, people noticed that the air was getting cleaner. The focus on sustainability is not only due to social responsibility or long-term plans, but it’s also Malaysia’s attempt to diversify the economy. Currently, Malaysia is one of the largest oil producers in Asia and its economy is slowly getting tied too closely to this one resource.
Malaysia’s economy is in a worse position than it was in the 2009 global financial crisis.
How Malaysia is dealing with the financial crisis
The country’s economic situations are disappointing and the recovery is not coming because of the second wave of the global pandemic. Experts are saying that the worst is yet to come. Malaysia is highly vulnerable to the global financial crisis because of the fact that the country is trade-reliant. Trading is the main source of the gross domestic product in the country.
The Malaysian government has been given an opportunity to pause and take a look at its values, its relationship with nature, and finally at the financial system. The country is very dependent on oil. Everyone knows that Malaysia is a major oil-exporting country. During the pandemic, the government found out that oil export alone can’t help with dealing with the problems in the country. Malaysia’s economy is in need of a more secure plan for functioning. Oil dependence is a dangerous habit.
The good thing is that during this pandemic, many countries like Saudi Arabia and the United Arab Emirates started to develop different industries in their countries. The countries are adopting new technologies and industries to work in and get some good revenue. Saudi Arabia has said that it wants to end the addiction to oil and they managed to proceed with that. With far-reaching reforms, they could transform their infrastructure and system of governing.
The International Energy Agency expects this financial crisis to be a turning point in the history of the oil industry. Countries are already rearranging their ideas of financial independence.
During the past decades, some countries were literally living on their oil revenue. They were happy to turn oil into cash and do nothing extra for the country. Sadly for them, renewable energies are developing, and sooner or later they will fully change the idea of energy in the future. Oil is not an unlimited source for the world. Renewable energy is.
The most popular and known renewable energies are Solar energy, Wind energy, Hydro energy, Tidal energy, Geothermal energy, and Biomass energy. Malaysia has the capacity to tackle all of these and finally be rid of the one-income syndrome as they call it.