What Recession in Malaysia? All signs are pointing for a recovery in 2023 as the new Prime Minister, Finance Minister, and Cabinet steers the economy in the right direction through his Budget 2023.
Prime Minister Datuk Seri Anwar Ibrahim is set to soar the nation to greater heights as Malaysia is on a solid footing to attract quality investments that can provide jobs and increase the national income. As Malaysia progresses under the new leadership, growing economic strength will help to cushion the impact of global economic headwinds.
The new Malaysian leader's Budget for 2023 can shield Malaysia's fragile recovery amid concerns over a global moving up again. Anwar is confident Malaysians will continue to contribute to the country's economic growth, and the Malaysia MADANI concept is the thrust that will set the pace for economic growth. As businesses progress, Malaysia needs to explore new fields and implement fiscal and financial policies that strike a reasonable balance between short-term pain and long-term gain.
Anwar is taking the opportunity to ensure all our growth engines keep firing. Anwar's formula to counter any recession is to see beyond 2023 with new reforms and other economic measures, which include:
- Reduction in prestigious infrastructure projects
- Monetary and fiscal tightening
- Institutional reforms in GLCs
- New transparent procurement processes
- Resolving cost of living issues
- Strengthening the Ringgit
- Removing monopolies and cartels
- Restructuring electricity tariffs for businesses and B40
- Gradual removal of subsidies
- SMEs driving the economy through more exports
- Promoting Malaysia to attract more investment
- Strengthen the state's industrial ecosystem
- Ensuring food security by expanding the agriculture sector
- Introduction of quality education
- Improving national healthcare
- More incentives for the lower income group to buy houses
- Better economic digital connectivity
- Human Resource development of Malaysian talent
"I am optimistic Malaysia would not face a recession," said International Trade and Industry Minister Tengku Zafrul Abdul Aziz. "Bank Negara, the International Monetary Fund, and the World Bank have projected Malaysia will continue achieving positive economic growth in the 3% to 5% range," he told Bernama during his recent visit to Penang. The definition of a recession is two successive quarters of negative GDP (gross domestic product) growth.
"Malaysia is forecasting a four per cent growth in 2023. Our (growth) numbers are looking good, inflation is at four per cent, and the unemployment rate is at 3.6 per cent," said, adding that Malaysia is expected to register a gross domestic product (GDP) growth of 8.0-9.0 per cent in 2022. "For the first nine months of 2022, the nation's economy expanded by 9.3 per cent, he said, adding that the country registered a 14.2 per cent GDP growth in the third quarter of 2022 amid robust domestic and external demand as well as an improved labour market."
The minister said the Unity Government, led by Prime Minister Anwar, is very much committed to the nation's participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect on 29th November 2022 in Malaysia.
M. Krishnamoorthy is a media coach, associate professor, and journalist who worked and freelanced with Bernama, NST, The Star, and Malaysiakini. He also freelances as a fixer/coordinator for CNN, BBC, German and Australian Television networks and the New York Times. As an undercover journalist, he has highlighted society's concerns going undercover as a beggar, security guard, blind man, disabled salesman and Member of Parliament.
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