The quarantine economy

Abstract

Economies around the world went into an unprecedented quarantine in 2020 as a result of the coronavirus disease 2019 (COVID-19), and the Malaysian economy was no exception. In this chapter, the concept of the quarantine economy is introduced, and the economy of Malaysia in 2020 is scrutinised as a case of the quarantine economy. To do so, this chapter adopts a critical review approach and relies on secondary data to unpack the peculiarities of the quarantine economy in Malaysia. In doing so, this chapter makes clear that an economy under quarantine as a result of a public health externality can experience both positive and negative impacts. The insights herein this chapter also set the context for the other chapters in this book, which should enable readers to appreciate the events emerging from the COVID-19 pandemic in the Malaysian economy.