[UPDATED] No economic downturn for Malaysia: Ahmad Maslan 

KUALA LUMPUR – Deputy Finance Minister I Datuk Seri Ahmad Maslan (Pontian-BN) assured that Malaysia is not at risk of a possible recession or falling economic growth rates this year, despite facing global economic uncertainties.   

He told the Dewan Rakyat today that this is based on the technical definition of an economic downturn – in which a country faces, among others, plummeting values of stocks, properties and commodities for two solid years.   

“Based on Malaysia’s economic growth performance in 2022, the government expects the nation’s economy to grow by around 4.5% this year, with the International Monetary Fund (IMF) and the World Bank predicting economic growth rates at 4.4% and 4%, respectively.   

“Based on these statistics, I would like to stress that the nation, god willing, will not face an economic downturn. The technical definition of an economic downturn is when a country’s economy experiences negative quarterly growth for two consecutive years,” he said.   

He also said that the government will continue prioritising building up the nation’s economy while providing equal development opportunities for its people by creating a more attractive investment destination – which will then create more job openings.   

Ahmad said this in response to a question by Datuk Idris Ahmad (Bagan Serai-PN) on measures the government will be taking to face potential economic turmoil the nation is projected to face this year.   

When pressed by Idris whether the overnight policy rate (OPR) will be raised anytime soon, as those in low and middle-income groups have been worrying about, Ahmad simply said to “wait and see.”   

He also insisted that the last OPR hike in November last year to 2.75% after remaining at 1.75% for two years since July 2020 had aided in curbing inflation.   

Last week, the Statistics Department said that the Malaysian economy is anticipated to grow at a more moderate pace this year following a strong recovery in 2022, as economies around the world continue to struggle to sustain growth.

Later, Ahmad said the Finance Ministry has ordered financial institutions which rake in great profits to enact corporate social responsibility (CSR) projects which will benefit citizens, including those in lower income groups. 

“Budget 2023 did not contain any announcement on a windfall tax, but the ministry has recently instructed banks with big profits to execute CSR projects for citizens,” he said when replying to an additional question by Datuk Seri Mohd Shafie Apdal (Semporna-Warisan). 

Ahmad added that the matter, along with other forms of aid for citizens, might be announced during Prime Minister Datuk Seri Anwar Ibrahim’s winding up on the Supply Bill 2023. 

Shafie had queried the minister on why the government has not initiated steps to tax banks which have garnered high profits due to OPR hikes since the easing of the Covid-19 pandemic. – The Vibes, March 6, 2023