KUALA LUMPUR – The government expects to achieve its gross domestic product (GDP) growth target of between 6.0% and 7.5% this year if the Covid-19 health crisis can be stabilised after the eventual lifting of the movement control order (MCO).
Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the availability of vaccines and a comprehensive vaccination roll-out for Malaysians will have a positive impact on the economy.
“If we assume that the percentage of vaccinated Malaysians goes according to schedule or can be accelerated, the Covid-19 situation can be placed under control, and we will be able to see a positive decline in infections.
“This will definitely have a positive impact on the position of the Malaysian economy.”
The leading index surged 17.3% in March, much higher than an increase of 8.2% in January and 8.6% in February.
Mustapa said the good performance is in line with the country’s GDP growth of 6.0% in March.
This growth momentum will be affected if the government decided to implement a full lockdown from May 25 to June 7, he added.
“Full-pledged movement restrictions will cause the unemployment rate to rise sharply, the number of poor households will increase, performance of small and large companies will be affected, and fiscal position will be in a more challenging condition.”
He said during an engagement with industry representatives, hawker associations, as well as micro, small and medium enterprises on May 22 and 23, most of them agreed with the government’s decision to implement MCO 3.0. – Bernama, May 25, 2021
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