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Malaysia may see strong GDP recovery in 4Q2021

Photo Credit: The Edge Markets

Malaysia can look forward to strong economic recovery in the fourth quarter this year if the Government’s actions to contain the virus are proven to be effective in bringing down the number of COVID – 19 cases.

Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the Malaysian economy was on a solid recovery trajectory before May 2021 with a much improved real gross domestic product (GDP) growth performance in the first quarter and a strong rebound in a number of economic indicators.

“Unfortunately, the increase in Covid-19 cases, and subsequent implementation of lockdown measures, has had an impact on Malaysia’s economic recovery. At the moment, our officials are crunching the numbers to assess the impact of the lockdown that began on June 1 on the Malaysian economy,” Mustapa said in his official address during the launch of the World Bank’s “Malaysia Economic Monitor: Weathering the Surge” report today.

“If the Government’s measures, including rapid vaccination and lockdowns, accompanied by strict observance of standard operating procedures (SOPs) are successful in reducing the number of cases, Malaysia can look forward to strong economic recovery in the fourth quarter of this year,” he added.

Noting that the rate of vaccinations is critical in reducing the number of infections and in reviving the country’s economy, he said the government has done a lot better in ramping up the vaccination roll out recently.

He also pointed out that the economic recovery will be aided by the National Recovery Plan as it provided a clear strategy for the country to emerge from the COVID – 19 pandemic.

“It (National Recovery Plan) also provides certainty to Malaysian workers and businesses, as it outlines clear timelines regarding the gradual opening of the Malaysian economy,” he added.

On top of that, Mustapa revealed that the Government is in the final stages of fine-tuning the 12th Malaysia Plan.

According to him, the plan will outline a number of fundamental reforms over the next five years to rebuild Malaysia from the pandemic, and to ensure the country is on track in achieving a prosperous inclusive and sustainable future.

Edited by Lam Jian Wyn
– The Edge Markets