KUALA LUMPUR – Malaysia is maintaining its gross domestic product growth target of between 6.5% and 7.5% for 2021 despite the emergency declaration and second movement control order (MCO), said Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
“It is still early, we are still in the first quarter of the year. So, we maintain (it for now), but our forecast is at risk given (what is happening) with the MCO,” he told an interview with Bloomberg today.
“It (GDP) will be at the lower end of our forecast.”
He said the stability and persistency of policies are crucial to control Covid-19 and enable the country’s economy to recover.
The government is committed to supporting businesses and the people, and ready to deploy more resources to combat the virus if needed, he said.
“The impact (of economic losses) per day during the previous MCO was around RM2.4 billion, but this time around, it is about RM700 million.
“Additionally, we have also implemented various stimulus packages, which are ongoing. The recently approved Budget 2021, and Economic and Rakyat Protection Assistance Package (Permai) will also help mitigate the impact on the economy.”
Asked whether there are moves to increase the debt ceiling, he said Putrajaya has no such plans at the moment, as it is too early to make revisions.
“If we look at where the debt level is today, we will continue to forecast it at below the 60% debt ceiling we set earlier.
“In terms of the Permai package, the fiscal injection is about RM15 billion, with most of the money coming from the allocation under Budget 2021.”
On the 1Malaysia Development Bhd scandal, Tengku Zafrul said Malaysia has recovered about RM15.4 billion in cash and physical assets linked to the state investor.
He said the country is committed to securing the remaining assets, regardless of the coronavirus situation.
“The Malaysian government remains committed to undertaking a responsible and pragmatic approach to the repatriation process that benefits the country and people,” he said, adding that 1MDB debt servicing is part of the government’s projection under Budget 2021.
On United States President Joe Biden’s inauguration, the minister expressed hope that trade tensions between the US and China will ease under the new administration.
“We hope that global trade can function in a more orderly manner under the ambit of the World Trade Organisation.”
The US is Malaysia’s third-largest trading partner, accounting for 10% of total trade in the first three quarters of 2020. – Bernama, January 22, 2021
