KUALA LUMPUR – Malaysia can look forward to a strong economic recovery in the fourth quarter (Q4) of this year due to present government measures, such as the rapid vaccination and lockdowns, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.
He said the economy is at a solid recovery trajectory before May, with a much-improved real gross domestic product (GDP) performance of -0.5% in the first quarter and strong rebound in a number of economic indicators.
“Unfortunately, the increase in Covid-19 cases and subsequent implementation of lockdown measures has had an impact on economic recovery,” he said in his official address during the launch of the World Bank’s “Malaysia Economic Monitor (MEM): Weathering the Surge” report this morning.
“At the moment, our officials are crunching the numbers to assess the impact of the lockdown that began on June 1 on the Malaysian economy.”
Mustapa said government measures, which include rapid vaccination, lockdowns and strict standard operating procedure compliance, have been successful in reducing the number of Covid-19 cases.
The Economic Planning Unit will continue working closely with The World Bank Group Inclusive Growth and Sustainable Finance Hub here, he added.
In welcoming the 24th edition of the MEM, he said the government has taken note of the report in which the World Bank has revised the country’s projected GDP growth downwards to 4.5% this year, which is lower than the government’s official estimate of between 6% and 7.5%.
“The focus of the report launched today is on the immediate impact of the pandemic. Understanding the medium- and long-term economic trajectory remains vital to ensure Malaysia’s growth is based on innovation and productivity.
“In this regard, the government is committed to continue conducting public-private consultations, (which) will help it in designing better policies and promoting better understanding of the impact of Covid-19 on the economy and, of course, on the post-Covid-19 recovery as well.”
Better social protection needed
Mustapa said the government has implemented six economic stimulus packages worth RM380 billion, with a direct fiscal injection of RM70 billion, in response to the health crisis.
“These stimulus packages have cushioned the impact of the pandemic on the rakyat and the Malaysian economy.
“For instance, the Geran Khas Prihatin benefitted nearly one million micro enterprises, while the Bantuan Prihatin Nasional benefitted more than 10 million Malaysians in the M40 and B40 income categories.”
He said the pandemic has clearly highlighted the need to provide better social protection, especially for Malaysians in the informal sector.
“Given the very challenging circumstances, it is imperative for the government to have a clear pathway forward. The National Recovery Plan provides a clear strategy for the nation to emerge from the Covid-19 pandemic.
“It also provides certainty to Malaysian workers and businesses, as it outlines clear timelines regarding the gradual opening of the Malaysian economy.”
The government has done a lot better to ramp up its vaccination roll-out, and is also in the final stages of fine tuning the 12th Malaysian Plan, he added.
“The rate of vaccination is, of course, critical in reducing the number of infections and reviving our economy.
“The plan will outline several fundamental reforms for the next five years to build back Malaysia from the pandemic and ensure we are on track in achieving a prosperous, inclusive and sustainable future.” – The Vibes, June 23, 2021
