Business

Tengku Zafrul confident vaccination drive a shot in the arm for economy

Finance minister adds country keeping 2021 GDP growth forecast at 6.5% to 7.5%

Updated 5 years ago · Published on 29 Jan 2021 2:09PM

Tengku Zafrul confident vaccination drive a shot in the arm for economy
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz says the economy will be supported by the recently announced RM15 billion Permai package. – Bernama pic, January 29, 2021

KUALA LUMPUR – Datuk Seri Tengku Zafrul Tengku Abdul Aziz has expressed confidence that the national Covid-19 vaccination programme, expected to be completed by the first quarter of 2022 (1Q22), will further drive Malaysia’s economic recovery.

In an interview with CNBC today, the finance minister said Malaysia is expected to receive the first batch of the Pfizer vaccine by end-February.

“The vaccine roll-out is expected to take place in early March and be completed in about 12 months’ time, or by 1Q22.”

The vaccination drive will be implemented in phases over a period of 12 to 18 months, with a target of 80% of the population, or close to 27 million people, inoculated by 1Q22.

Tengku Zafrul said the country is maintaining its 2021 gross domestic product growth forecast at 6.5% to 7.5%, and a fiscal deficit target of 5.4% of GDP this year.

He is optimistic that the economy will be supported by the recently announced RM15 billion Malaysian Economic and Rakyat’s Protection Assistance Package, aimed at assisting various sectors, including small and medium enterprises.

Asked if there is a risk of the fiscal deficit widening should the government need to spend more on its Covid-19 fight, he waved away jitters.

“Should we need a further fiscal injection to stimulate the economy, it would have an impact on the deficit target. But, it (fiscal injection) will help (the growth of) revenue and GDP, so the target (of 5.4%) should remain.”

He said Putrajaya is closely monitoring the coronavirus situation.

“If there is a need for a further injection to help revive the economy for the short term, this is something that the government has to do.

“But today, we still maintain Budget 2021, which was recently approved by the government.”

Malaysia recorded 4,094 new Covid-19 cases yesterday, taking the national tally to 198,208. – Bernama, January 29, 2021

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