The Scotland Under-21 international then claimed a late equaliser in the 3-3 draw at Manchester City in November but that is the only goal McDonald has scored in 13 starts this term.
Laws replaced previous manager Owen Coyle in January and is battling to keep the Clarets in the Premier League.
And while he believes there is no doubt about McDonald's ability, Laws reckons the former Dundee man can get even better if he had greater self-belief.
"Kevin's a good player, he's just got to believe in himself a little bit more," Laws told the Lancashire Telegraph.
"He lacks a little bit of confidence sometimes in his own ability, he's a bit negative on himself.
"But you tell them and show them they're good players and eventually they'll believe it.
"He's a good player, he's got stature, strength, good ability on the ball and I know he can get a goal as well, so I'm looking for him to chip in.
"He is quiet, he's not vocal on the pitch, he has to be built up. The quiet ones - you don't lie to them.
"If they're having a good game, tell them. If they're having a bad game, tell them. He could be a significant player."
Barclays Premier League Relegation 2009/2010. Click here to bet.