World Bank’s downward revision for Malaysia's GDP expected - Azmin

 

The World Bank’s downward revision of Malaysia’s gross domestic product (GDP) to 4.5 percent for 2021 was expected, said International Trade and Industry Minister Azmin Ali.

The World Bank recently lowered its GDP growth projection for Malaysia for a second time to 4.5 percent for 2021 - from 6.0 percent estimated in March and 6.7 percent in December 2020 - after taking into account the rise in Covid-19 infections and a slower-than-expected vaccine rollout.

Azmin said Prime Minister Muhyiddin Yassin would announce later today the introduction of new initiatives and incentives that would help mitigate the economic slowdown.

“We raised the GDP issue this morning during the Economic Action Council (meeting), we took note of the new revision by the World Bank to revisit and review our growth for 2021.

“(It had been previously) forecast at 6.0 percent but now it has been revised down to 4.5 percent and certainly it has to do with the decision of the government to impose the movement control order 3.0 (MCO 3.0).

“We have no other options, we have to take a bold decision to strike a balance between lives and livelihoods and that is the decision that we have taken, but it has an economic impact,” he told reporters after visiting a vaccination centre at the Setia City Convention Centre.

Azmin said the government’s various stimulus packages amounting to RM380 billion had softened the impact of lockdown, resulting in some positive indicators in the first quarter of 2021.

He also indicated that the government has been refining several economic packages to help businesses, especially small and medium enterprises (SMEs) and micro SMEs.

- Bernama