KUALA LUMPUR – The government is very optimistic Malaysia will continue to record positive growth this year due to the country’s diversified economy, based on recent positive data from reputable international agencies, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said.
“Looking at the United States and the global economy, (they) are under pressure and based on analyst estimates, the second quarter is quite bad.
“For Malaysia, we have seen strong second-quarter growth. For the third quarter, we feel that momentum will be on growth for the country, but we have to remember the base effect on last year’s third quarter,” he told reporters after the launch of the i-Lindung Insurance and Takaful Facility here today.
Tengku Zafrul said the data shows that Malaysia’s gross domestic product growth forecast of between 5.3% and 6.3% in 2022 is still on track.
“This is again not just from me, the Finance Ministry, or Bank Negara Malaysia, but also S&P Global Ratings, which has upgraded the outlook for Malaysia; and the International Monetary Fund and World Bank, which validated the growth figures.
“We are affected by the slowdown in the US economy. Things are very fluid, so as a trading nation and an open and small economy, we need to also monitor the growth globally,” he said.
The minister said that although growth figures by sectors were seen to be uneven, certain sectors such as palm oil, oil and gas, and manufacturing were doing well so far.
Furthermore, he said the government will have to ensure that the economy is on track through its fiscal policy.
However, Tengku Zafrul said Malaysia, together with other countries, will have to be prepared for any eventualities, including a global recession.
On the fiscal space, he said Malaysia is still in a better position compared with last year, given the growth in economy and improvement in commodity prices.
“The government is aware of the concerns and (has) also seen the impact of what is happening globally to Malaysia,” he said, adding that the government has recently increased Bantuan Keluarga Malaysia, the largest direct cash assistance, to the tune of RM8 billion so far.
As such, he reiterated that the fiscal space needs to be continued, while the government is looking into ways to save money to ensure that funds can be channelled to those in need of the government’s support.
“For now, the fiscal deficit will continue to be in (the) 6.0% range as targeted. We will continue to monitor this,” he said, adding that Malaysia’s statutory debt is still below the approved limit in line with the deficit target. – Bernama, July 12, 2022
