The multiplier effects of the RM150 billion Pemulih economic package will uplift Malaysia’s gross domestic product (GDP) by two percentage points this year, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said.
Tengku Zafrul, however, said the government would revise downward the GDP forecast from the earlier projection of between six and 7.5%.
Last week, World Bank cut its GDP growth projection for Malaysia for the second time to 4.5% in 2021 from six per cent estimated in March and 6.7% in December 2020.
This was after taking into account a flare-up in COVID – 19 infections and slower – than – expected vaccine rollout.
“The Finance Ministry and Bank Negara Malaysia are studying the cost of having the current Movement Control Order (MCO) under Phase 1, Phase 2, Phase 3, and Phase 4 and should it mitigate the impact to GDP with the introduction of Pemulih.
“Yes, we expect the GDP forecast to be revised downward given the current MCO. But the good thing is, as we move towards Phase 2, 3, and 4, more sectors will be opened and should affect the economy slowly towards the third and fourth quarter of the year,” he told reporters at a virtual briefing on Pemulih today.
Tengku Zafrul said the official announcement on the new GDP projection would be made in mid – August.
He added that besides that, the national fiscal deficit was expected to rise given the lower GDP projection than what was forecast earlier.
- New Straits Times