Malaysia’s GDP to experience 6% growth: OECD
The country’s real GDP increased by 3.1 percent in 2021, with industrial production contributing the most to growth
When Malaysia’s King Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah delivered the royal address at the opening session of the fifth term of the 14th parliament, he shared that he saw significant economic improvement in 2021.
He followed this up with, “[In 2022,] let us continue to strengthen our strategies and resilience in dealing with the challenges of COVID-19. The nation’s economic recovery should be accelerated so that the country does not fall behind.”
The Star reported that Prime Minister Datuk Seri Ismail Sabri Yaakob said that Malaysia’s positive economic performance in 2021 shows that the country was projected to achieve the targets set for this year.
“Many assume that we have failed to revive the economy. In fact, we have already succeeded in reviving the economy. In terms of foreign direct investment (FDI), we have also recorded an increase in 2021, which is more than MYR50 billion (USD11.9 billion) compared to MYR14.6 billion (USD3.5 billion) in 2020,” he added.
Today, Malaysia’s economy is experiencing a steady recovery, as the Organisation for Economic Cooperation and Development (OECD) expects the country’s GDP to increase by 6 percent this year and 5.5 percent next year.
This follows the Ministry of Finance’s forecast of a 5.5 percent to 6.5 percent growth, according to the New Straits Times. It is, however, lower than the projections of the International Monetary Fund and of the World Bank, which are 5.75 percent and 5.8 percent, respectively.
Ultimately, the country’s real GDP increased by 3.1 percent in 2021, with industrial production contributing the most to growth.
The OECD noted that while growth is on the horizon, it will still depend on how the country will contain the pandemic amid the emergence of the Omicron variant.
More: Malaysia to transition into endemic phase starting 1 April
“While the resurgence of COVID-19 cases and the potential re-imposition of nationwide containment measures are expected to weigh on growth in 2022, several factors should mitigate their impact. These include continued government support for businesses in essential economic sectors, a higher degree of adaptability to remote work, and higher levels of automation and digitalisation,” the organisation added.
The Property Report editors wrote this article. For more information, email: [email protected].
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