Malaysia to grow 6 percent in 2022: MIDF Research

Kuala Lumpur (VNA) – The Malaysian Industrial Development Finance Berhad (MIDF) Research has foreseen the country’s gross domestic product (GDP) to grow 6 percent in 2022 from 3.1 percent in 2021, mainly driven by the economy’s further reopening, including a lift of ban on international travels.

As reported by the local news agency Bernama, the research firm said with a high vaccination rate, there is less need for the government to tighten COVD-19 restrictions given the ability of the healthcare system to withstand the recent resurgence in COVID-19 infections.

Therefore, it expects the momentum of growth will continue to strengthen this year, backed by growing domestic spending, improving labour market and increased business activities. "Sustained growth in external demand will also support Malaysia’s trade and production activities this year," it said in its Monthly Economic Review issued on February 28 as quoted by Bernama.

The MIDF Research has also viewed prolonged disruption in the global supply chain, rising commodity prices and higher import costs to be among downside risks to growth outlook.

Meanwhile, it noted that Malaysia's total trade stood at 203 billion RM (48.39 billion USD) in the first month of 2022, increasing 24.8 percent annually, driven by sustained growth in both exports and imports. In addition, the country’s January headline inflation recorded a four-month low, dragged by lower price growth of non-food./.