KUALA LUMPUR – The Finance Ministry stressed that Malaysia will not experience an economic downturn this year despite facing global economic uncertainties.
Deputy Finance Minister II Steven Sim said the technical definition of an economic recession is when a country experiences two consecutive quarters of economic contraction.
“This year, the government expects the country’s economy to expand around 4.5%. This is in line with the projections by the International Monetary Fund and World Bank, which projected Malaysia’s economic growth this year at 4.4% and 4.0% respectively.
“The government will continue to strengthen economic growth and equitable development for the people – as well as making Malaysia a more attractive investment destination by facilitating investment processes, creating more high-innovation start-ups, and generating more job opportunities with fair income,” he said during an oral-answer session in the Dewan Rakyat today.
Sim was replying to a question from Wan Hassan Mohd Ramli (Dungun-PN) on the measures taken to address and minimise the impact of the economic downturn this year.
To tackle the effects of rising prices for basic necessities, Sim said the government continues to grant subsidies and cash aid – such as the Rahmah Cash Contribution scheme – and various incentives with a total allocation of RM64 billion.
Apart from that, he said the government has also implemented the Menu Rahmah and Jualan Rahmah programmes under the Rahmah umbrella initiative, besides continuing to set price ceilings and standardising the prices of specific basic necessities.
To rebuild micro, small, and medium enterprises (MSME) in the post-pandemic period, Sim said the government has provided incentive funds, tax deductions, loans, and financing guarantees with an allocation of over RM40 billion.
Through the direct empowerment of the MSME sector, the country can develop its economy and indirectly create high-income jobs, he added.
He also said that besides subsidy allocation, the government has started to implement targeted electricity subsidies for 10% of the top consumers. – Bernama, March 15, 2023
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