Malaysian economic forecast to expand 5.75% this year

The International Monetary Fund (IMF) has projected Malaysia’s economy to grow to about 5.75% this year from 3.1% in 2021 on the back of the government’s impressive vaccine rollout and swift implementation of economic policy support measures. According to the preliminary findings of an IMF team, the pent-up domestic demand and continued strong external demand will also help drive the projected growth in 2022. The IMF team recommended additional near-term targeted fiscal support towards vulnerable and hard-hit segments of the economy and productive investments. The findings also included that the accommodative monetary policy stance is appropriate and the financial sector support measures should continue to be more targeted.