MoF: Malaysia’s economic growth on right track

The growth is supported by aggressive economic and social activities, encouraging domestic and external demand, reopening of international borders, growing labour market and investment projects

by ANIS HAZIM / pic TMR FILE

MALAYSIA’S economy is on track to achieve its latest growth projections of between 5.3% and 6.3% as measured by GDP, the Finance Ministry (MoF) said.

Deputy Finance Minister II Yamani Hafez Musa said the country’s recent key indicators have progressively reflected a positive economic performance.

“In the first quarter of 2022 (1Q22), Malaysia recorded a strong economic growth of 5%, while GDP in the 2Q strengthened to 8.9%, simultaneously recording a growth of 6.9% for the first half of 2022 (1H22),” he told Dewan Negara today.

Yamani was replying to Senator Datuk Othman Aziz, who asked whether the government is confident that the country will meet its latest GDP target.

He noted that the economic growth was supported by more aggressive economic and social activities, encouraging domestic and external demand following the country’s transition to the endemic phase, the reopening of international borders, growing labour market and investment projects.

“The government’s consistent policy support, particularly through initiatives under Budget 2022 expansion with vigorous measures since the beginning of the year is expected to contribute to improved economic growth this year,” he said.

Meanwhile, the service and manufacturing sectors remain the leading sector of economic activity as the sectors contribute to over 80% of Malaysia’s economy.

“In the 1H22, the service sector continued to increase by 9.2% compared to 4.9% in 1H21,” he added.

The growth was driven by the performance of the transport and storage subsectors, wholesale and retail trade, food and beverage, as well as accommodation on the back of increased household demand and tourism-related activities.