KUALA LUMPUR, March 15 — The Ministry of Finance (MoF) 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 Chee Keong 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 per cent. This is in line with that projected by the International Monetary Fund (IMF) and World Bank, which projected Malaysia’s economic growth this year at 4.4 per cent and 4.0 per cent 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 by facilitating investment processes, creating more high innovative startup companies and generating more job opportunities with fair income,” he said during an oral answer session in the Dewan Rakyat today.
Sim was responding to a question from Dungun MP Wan Hassan Mohd Ramli on the measures taken by the government to address the economic downturn issues in 2023, to minimise the impact on Malaysians.
To tackle the effects of rising prices of basic necessities, he said the Unity 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, 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.
To rebuild the micro, small-and-medium enterprises (MSME) during the post-pandemic period, Sim said the government has provided incentive funds, tax deductions, 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.
Asides from subsidy allocations, he said the government has also started to implement targeted subsidies in electricity bills for 10 per cent of the top consumers.
— Bernama
