Selangor expects GDP to be slashed by half

Kuala Lumpur 23 July 2019 Selangor MB, Amirudin Shari giving keynote address to launch Selangor regional powerhouse conference at hilton kl px razak ghazali

Selangor would experience a slower growth this year as a result of restriction orders implemented in the state

by AFIQ AZIZ / pic by RAZAK GHAZALI

SELANGOR expects its GDP growth to be slashed by half this year, compared to 6.7% recorded in 2019 due to the Covid-19 pandemic.

Mentri Besar Datuk Seri Amirudin Shari (picture) said Selangor would experience a slower growth this year as a result of restriction orders implemented in the state to curb the virus spread.

Amirudin said the state performance will also be measured based on GDP growth at the national level.

In April, Bank Negara Malaysia measured the country’s GDP to slump between -2% and 0.5% in 2020. However, in August, the central bank revised the forecast to between -3.5% and -5.5%.

“Selangor’s economic growth projections are made in three scenarios. First, if the expectation of national GDP is positive 0.5%, the state’s growth rate is 2.09%.

“Second, if the national projection is at a negative level of 0.5%, Selangor’s growth rate is 1.07%. The worst-case scenario is, if the national expectation is at a negative level of 3%, the state expectation is at a negative level of 1.47%,” he said at the State Legislative Assembly yesterday.

Amirudin was responding to a query by Elizabeth Wong (Pakatan Harapan-Bukit Lanjan) on the projected economic growth of the state GDP.

Areas in the Klang Valley have to go through another series of Conditional Movement Control Order from October due to the third-wave infection.

Teng announced last month that the state would only rake RM8.5b of FDIs before December for its manufacturing sector – Muhd Amin Naharul

In October, Selangor executive councillor Datuk Teng Chang Khim also announced that the state would only rake RM8.5 billion of foreign direct investments (FDIs) before December for its manufacturing sector, lower than the RM12 billion projected previously.

However, Amiruddin said the state is optimistic to reach its income target this year.

“We are targeting a revenue of RM2.2 billion by 2020. We achieved RM1.99 billion, or 90% of the aim as of Oct 26,” Amirudin said.

The state government revenue’s in 2017 was RM1.8 billion, RM1.99 billion (2018) and RM2.32 billion last year.

The Selangor state government announced a budget of RM2.32 billion for 2021 last Friday, with a slightly lower estimated deficit of RM123 million due to the Covid-19 pandemic.