Malaysia sees steady economic recovery; e-commerce and 5G part of key drivers

Continued economic recovery and the restart of corporate operations will lead to an improvement in domestic economic activity

Minister of Finance Datuk Seri Tengku Zafrul Abdul Aziz said Malaysia’s economy is far stronger than Sri Lanka’s, reports Malay Mail. Malaysia has never been declared bankrupt by the International Monetary Fund (IMF); rather, it consistently expresses confidence in the country’s economic prospects.

“In April this year, the IMF has expressed confidence that the country’s gross domestic product (GDP) for 2022 will grow at a rate of 5.75 percent,” he said.

Malaysia’s economy continues to expand despite rising inflation, according to Free Malaysia Today. Research suggested that the country’s growth projection remains at six percent, which is led by the reopening of the economy and the lack of strict COVID-19 regulations.

The data revealed that the coincident index was at 5.3 percent YoY in April, which was the fastest growth in almost a year. Continued economic recovery and the restart of corporate operations will lead to an improvement in domestic economic activity.

More: Malaysia turns to Middle Eastern millennial and Gen Z tourists for tourism revival

Exports surged by 30.5 percent YoY in May 2022, which can be attributed to higher re-exports and more shipments to nearby nations.

Due to accelerating domestic economic development and high commodity prices, import growth accelerated even further to 37.3 percent in May 2022.

Apart from these, digital transformation and e-commerce are also key drivers of Malaysia’s economy. 

The Malaysian Reserve reported that, compared to 46 percent before the COVID-19 pandemic, more than 88 percent of Malaysians now shop online.

Malaysia had 29.6 million internet users as of January 2022. Due to the advantages that e-commerce has to offer, currently, more than 65 percent of Malaysian customers use online shopping as their major purchasing method.

In light of this, Malaysia’s Prime Minister Datuk Seri Ismail Sabri Yaakob, according to The Borneo Post, expressed optimism that the rollout of 5G will increase the country’s economic competitiveness as well as levels of industry productivity and value creation.

The Property Report editors wrote this article. For more information, email: [email protected].