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The diseases caused by the virus SARS-CoV-2 (as named by International Committee on Taxonomy of Viruses) is named as COVID-19. It is a part of Coronaviruses (CoV), which is a large family of viruses that have caused illness from the common cold to more severe ones such as MERS-CoV and SARS-CoV. SARS-CoV-2, is a new strand of zoonotic virus (able to jump from animal to human) and is believed to originate from the Huanan seafood market in Wuhan, China. The fatality of this virus highly depends on the condition of the patient itself. 

Research by Chen et. al, (2020) suggested that the virus is more likely to affect older men with long-term medical problems. This is due to the protection of X chromosomes and sex hormones in woman which has a significant role in immune systems. Older people with pre-existing medical conditions such as asthma, diabetes, and heart disease are more likely to be severely affected. While the common symptoms include fever, cough, and shortness of breath, more severe cases can cause pneumonia, severe acute respiratory syndrome (SARS), kidney failure, and death. 

The COVID-19 virus is transmitted through respiratory droplets that can travel through the air and land on the other person’s mouth or nose and thus infecting them. An airborne route can travel up to 6 feet (1.8 meters) radius from where the respiratory droplet of infected people originate. Coughing, sneezing, shaking hands, touching door knobs that have been infected by the virus are also some ways the virus can be transmitted very easily and quickly. 

Which is why having good hygiene practices such as washing your hands frequently, wearing gloves in public areas, and showering regularly would prevent infection. Wearing a face mask is not necessary as the mask is not airtight and does not necessarily prevent breathing in the viral particles. However, if you are having fever and cough it is advisable for you to wear a face mask to prevent transmission to other people. 

As of the time of writing, Malaysia has recorded 55 confirmed cases with zero deaths. Globally, there were 96,837 confirmed cases with 3,311 deaths – a death rate of 3.4%. That being said, the 3.4% figure may be misleading as it may omit several important factors. For example, the figures may only pick up a small subset of those infected, usually the more severe cases, hence exaggerating the death rate. This view is reasonable, and countries that have conducted more widespread testing have reported lower death rates. South Korea, for example, tested thousands of people a day and reported a fatality rate of 0.5%. 

For many investors in Asia, the recent COVID-19 sell-off feels like they are waking up from a bad dream, only to enter a nightmare. Chinese markets reopened to massive losses on the 3rd of February after an extended Lunar Holiday, with the Shanghai Composite Index suffering its worst daily drop in 4 years – collapsing 7.7% in a single day. Some $393 billion was wiped off the benchmark Chinese index as more than 2,500 stocks sank by the 10% daily limit. 

The story in Malaysia is one of a gradual, yet persistent decline. Although the country’s stock exchange – the Kuala Lumpur Composite Index (FBM KLCI) – managed to hold the ship relatively steady since news of COVID-19 broke out last December, the index has progressively fallen by 7.1% since the start of the year. 

In the final week of February, spikes in global COVID-19 cases – especially in Italy, Iran, and South Korea – elicited a swift and apocalyptic response from investors. Almost all major indices across the world saw double digit falls in a matter of days. In the last week of February alone, the FBM KLCI tanked 4.2% as analysts expect the bearish dive to persist.

Poor economic data further adds to global woes. China’s February PMI, for example, fell to a record low of 35.7 compared to 50.0 in January. This is far below analyst’s expectations for February’s PMI to come in at 46.0. In addition, global supply chains are stretched to their limits, with China, the largest exporter of the world’s production, drastically decreased both its production and exports in the last quarter. 

The drop in China’s exports is estimated to cause a $50 billion fall in global shipments, with the EU, Japan and Taiwan expected to suffer high export losses as China produces fewer component parts. China accounts for a fifth of global trade in intermediate products (essential inputs to produce materials ranging from automobiles to mobile phones). 

Reassuringly, policymakers are not sitting idly by. Central Banks across the world have simultaneously taken a concentrated effort to mitigate the catastrophic impact of COVID-19. Meanwhile, the US Federal Reserve made an emergency rate cut by 50 basis points to a range of 1% to 1.25%, the first time it has done so since the global financial crisis of 2008. Closer to home, Bank Negara reduced our Overnight Policy Rate by 25 basis points to 2.50%, which is the lowest since 2011. Reducing interest rates stimulates economic growth as borrowing becomes cheaper for both businesses and consumers. 

As of now, COVID-19 has yet to be declared as a pandemic by the World Health Organization. However, the United Nations agency has said that they will be using the term if necessary. 

According to the NHS UK, there are currently no specific treatments for COVID-19. But there are several potential drugs that have been used by hospitals to treat COVID-19 patients. More than 80 clinical trials have been launched to test for COVID-19 treatments, more than 20 companies and public organizations worldwide are racing to find a vaccine, and $2bn of funding is given to find the cure. 

The world is trying its best to put a halt to the outbreak, but the real halt comes from you.