Finance Minister Tengku Zafrul Says Malaysian Economy Will Improve In 2021

The 2021 national budget, focused on revitalising the economy, will be tabled in Parliament on 6 November.

Cover image via Business Today

According to Finance Minister Datuk Seri Tengku Zafrul Aziz, the Malaysian economy will see an improvement in 2021

On 4 July, Tengku Zafrul was featured on the TV3 programme 'Money Matters'.

He said, "The World Bank, International Monetary Fund (IMF), rating agencies, and analysis are projecting that Malaysia will pot a strong growth next year."

He also mentioned that the national budget will be tabled in Parliament on 6 November.

"The main focus will be to drive new sources of growth and future-proofing Malaysia, because 2021 will be the year where we want to sustain the growth that we hope to achieve in the third quarter and fourth quarter of this year. The national budget must be there to accommodate and facilitate this growth," he explained.

Besides that, he also said that the government is planning to continue with mega projects, given their potential contribution to the country's gross domestic product (GDP)

The projects include the Light Rail Transit Line 3, Mass Rapid Transit 2, East Coast Rail Link, and the National Fiberisation and Connectivity Plan, as reported by Bernama.

Tengku Zafrul also assured that the country needed to spend and invest to stimulate the economy, and these mega projects would add 1% to the country's GDP.

He cited the Prihatin Rakyat Economic Stimulus Package (PRIHATIN) and the National Economic Recovery Plan (PENJANA) for adding at least 3% to the GDP.

"Good thing about PRIHATIN and PENJANA is that the measures are very much 'one-off' and temporary. That fiscal injection of about RM45 billion will not appear again in next year's budget," he said.

"So mathematically, our borrowings will go down and GDP will grow next year. Once companies do better, the government's tax revenue will be better."

Following the gradual opening of the Malaysian economy, Tengku Zafrul assured that the country is on track to achieve a V-shape recovery

Astro Awani reported that the Finance Minister said, "Bank Negara Malaysia expects Malaysia's GDP growth to be between -2.0 to 0.5% this year."

"Next year, the consensus is at 5% GDP growth for Malaysia. To me, that is a positive sign that our economy will improve."

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