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aws全区号(www.2km.me)_Economists: Malaysia poised for strong recovery

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Malaysia GDP Growthd

KUALA LUMPUR: Economists are optimistic that Malaysia’s economy is poised for a strong recovery in 2022.

However, they emphasised that much will depend on how the country manages its level of Covid-19 infections.

Sunway University economics professor Dr Yeah Kim Leng said there are now more palpable sentiments and greater confidence that the economic recovery will be more durable and sustainable in 2022.

“This is a natural progression of the country transitioning to Phase 4 of the National Recovery Plan, where all sectors of the economy are allowed to operate, movement restrictions lifted and gatherings allowed with prescribed public health protocols or operating procedures.

“Barring a recurrence of the nationwide movement restriction orders, which is less likely given that the population is almost fully vaccinated, the expected recovery in domestic consumption and investment activities, coupled with the ongoing export-led expansion, are expected to sustain a gross domestic product (GDP) growth of 6% in 2022,” he told StarBiz.

Besides the base effect, Yeah said the stronger domestic and external demand will contribute to positive growth.Sunway University economics professor Dr Yeah Kim Leng said there are now more palpable sentiments and greater confidence that the economic recovery will be more durable and sustainable in 2022.

“However, the national income will only be slightly higher than pre-pandemic levels in 2019,” he added.

Meanwhile, Malaysia University of Science and Technology professor Geoffrey Williams said growth will be dependent on how the country handles the Covid-19 situation.

“I think the biggest risk is an overreaction to the Omicron variant and a stricter approach to enforcement, or further travel restrictions and even lockdowns.”

He noted that some countries such as the UK have begun tightening restrictions.

“This is dangerous in economic terms. The hope is that we do not see that here in Malaysia.

“Other factors such as the political environment are normal issues. But if Covid-19 restrictions affect international trade, this can hold back exports as a growth driver for Malaysia.”

Malaysia’s external trade continued its stellar performance in November 2021, with a year-on-year expansion of 34.9% to RM205.5bil, breaching the RM200bil mark for the second time in a row.Malaysia University of Science and Technology professor Dr Geoffrey Williams.

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