KUALA LUMPUR – Economic indicators suggest a growing economy and added tax collection for next year, according to Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.
During the windup of the 2022 budget debate at the committee level, Tengku Zafrul said the nation’s economy is expected to expand 3-4% this year.
Despite challenges in the third quarter of 2021, Tengku Zafrul said, economic indicators display a strong recovery momentum as Malaysia enters the fourth quarter and progresses to 2022.
Similarly, with regards to the labour market, the unemployment rate of 4.5% in September, and the rise of exports by 24.7% suggests a promising economic year for 2022, he said.
“We also see a rise in the commerce and consumer confidence index. Thus, although the gross domestic product (GDP) contracted by 4.5% in the third quarter, the first nine months of the year, GDP remained positive at 3% compared with a 6.4% decline the same period last year.
“The confidence in economic growth next year is in line with the International Monetary Fund and World Bank, which estimated a GDP ranging between 3.3% to 3.5%.
“So our projection for growth next year is 5.5% to 6.5%,” Tengku Zafrul said.
Meanwhile, the finance minister also took the opportunity to explain that with the projected rise in GDP next year, Putrajaya similarly estimates a rise in revenue collections.
Adding further, an increase in revenue collections is expected due to the prospect of better corporate gains supported by the recovery and resumption of economic sectors during the fourth quarter of this year.
“It must be emphasised that our projection for revenue collection was made with the expectation that there will be no sale of government assets or shares,” Tengku Zafrul added. – The Vibes, November 24, 2021
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