The International Seminar on Regional Politics, Administration and Development 2020 (INSORPAD2020), STISIPOL Raja Haji, Riau, INDONESIA, 14-15 October 2020 277 CP037 Exploring Global and Malaysia’s Financial Stability Impact of COVID-19 Pandemic Vally Senasi, PhD School of Government (SOG), Universiti Utara Malaysia (UUM) Correspondence author email: vally@uum.edu.my Abstract Many believes year 2020 would brought great changes and opportunities for their future. No one ever thought the world economy would be disrupted by Covid-19 outbreak at the same year. High level of health crisis escalates with uncontrollable cases of infection and deaths around the world. All countries have taken unprecedented measures to curb the pandemic by introducing movement control order (MCO), centralized quarantine, closure of country’s border gates, ban the social gatherings, closure of business activities and quarantine order against the population, mask wearing and school closure and so on. Due to the measures taken by the governments to curb the pandemic, current global financial reports show instability and sharp decline in growth projections in many sectors. This paper would explore the effect of COVID-19 on global and Malaysia’s financial stability. Government’s intervention is essential to help the individuals, household and businesses to sustain in long run. This paper can provide useful insights on current financial stability of Malaysia and worldwide. Keywords: global, Malaysia, financial stability, COVID-19 1. INTRODUCTION Year 2020 experiencing a dramatic decline in global economy development. The stability of the world economy is expected to be disrupted by the sudden outbreak of the Covid- 19 pandemic. The virus continuously spread in more than 100 countries around the world. Updates from Ministry of Health shows infection cases escalates day by day. All countries including Malaysia have taken unprecedented measures to curb the pandemic by introducing movement control order (MCO), centralized quarantine, closure of country’s border gates, ban the social gatherings, closure of business activities, mask wearing and school closure and so on. Terms such as COVID-19, pandemic, new normal, Acute Respiratory Stress Syndrome (ARDS), asymptomatic, social distancing, screen test become wildly used words in our daily conversations. Like it or not we should adapt ourselves with this new normal in our life in order to protect ourselves and others from the pandemic. Although these social imprisonment measures are important to ensure public health, however, it has great impact on the supply and demand market. This indicates that the rate of economic activity around the world is shrinking significantly while the prospects for advanced economies and emerging economies are declining. For instance, global economy forecast to shrink by 5.3% this year (World Bank, 2020). This situation has caused a great deal of turmoil in the global financial market and economic stability in Malaysia and worldwide. Therefore, world financial agencies such as International Monetary Fund (IMF), European Economic Union, World Bank and so on regulates financial and economic flows holistically.