No economic downturn despite global uncertainties - Finance Ministry

 

PARLIAMENT | The Finance Ministry stressed that Malaysia will not experience economic turmoil this year although the country is faced with global economic uncertainties.

Deputy Finance Minister II Steven Sim said the technical definition of an economic recession is when a country experiences two consecutive quarters of economic contraction.

“This year, the government expects the country’s economy to expand around 4.5 percent. This is in line with what the International Monetary Fund (IMF) and World Bank projected which is 4.4 percent and 4.0 percent respectively.

“The government will continue to strengthen the economic growth and equitable development for the people as well as making Malaysia a more attractive investment destination,” he said during an oral answer session in the Dewan Rakyat today.

This can be done through facilitating investment processes, creating more high innovative startup companies and generating more job opportunities with fair income, he explained.

Sim said this in reply to a question from Wan Hassan Mohd Ramli (Perikatan Nasional-Dungun) on the measures the government is taking to address the economic downturn issues in 2023 to minimise the impact on Malaysians.

Subsidies, cash aid

To tackle the effects of rising prices of basic necessities, Sim said the government continues to implement subsidies and cash aid such as Rahmah Cash Contribution and various incentives with a total allocation of RM64 billion.

Apart from that, he said the government has also implemented the Menu Rahmah and Jualan Rahmah programmes under the Rahmah umbrella initiative, besides continuing the setting of the price ceiling programme as well as standardising the prices of specific basic necessities.

Deputy Finance Minister II Steven Sim

To rebuild the micro, small and medium enterprises (MSME) during the post-pandemic period, Sim said the government has provided incentive funds, tax deduction, loans and financing guarantees with an allocation of over RM40 billion.

Through the empowerment of the MSME sector directly, the country can develop its economy and indirectly create high-income jobs that are fair for the people, he added.

Besides subsidy allocation, he said the government has also started to implement targeted subsidies in electricity bills for 10 percent of the top consumers.

- Bernama