Malaysian economy forecast to grow at slower pace in 2022

In Kuala Lumpur, Malaysia (Photo: Xinhua)

Kuala Lumpur (VNA) – Malaysia’s economy is likely to expand at a slower rate this year as the country gradually recovers from the policies and measures implemented during the lockdowns, said Prof. Geoffrey Williams from the Malaysia University of Science and Technology (MUST).

At the 2022 Malaysia Economic and Strategic Outlook Forum, Williams said that while the country would see economic growth, the figures would not be as optimistic as predicted by international forecasters due to a variety of factors, including the lockdown policies.

According to the professor, the country's gross domestic product will grow by around 3.5 per cent because the lockdown policies have affected all aspects of the domestic economy, with the median wages falling.

He also expected inflation to be around 1.6 percent. It may rise slowly, but it will be below 2 percent by the end of 2022.

On the impact of Budget 2022, Williams emphasised the importance of establishing an independent fiscal institution in the country to help understand the impact of budgetary discussions from a forensic perspective, which would report directly to both the parliament and the people./.