Economy expected to strengthen in Q2, 2023 budget will further build resilience, says Tengku Zafrul
Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said the economy is gradually improving and has started to grow based on various indicators for May 2022. – Photo by Yusof Mat Isa
Saturday Jul 09, 2022 2:42 PM MYT
KUALA LUMPUR, July 9 – The country’s economy is expected to continue to strengthen in the second quarter (Q2) of this year after encouraging gross domestic product growth of 5% in the first quarter, including continued improvement in wholesale trade and retail, according to Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.
He noted that the economy is gradually improving and has started to grow based on various indicators for May 2022.
To accelerate the momentum of the recovery, the Ministry of Finance has launched engagement sessions with the aim of establishing measures that take into account the needs of various stakeholders, he said.
“The 2023 budget will focus on structural reforms and building economic resilience. With its theme “Strengthening Recovery, Facilitating Reforms Towards the Sustainability of Keluarga Malaysia’s Economic Resilience and Wellbeing”, the government will continue to focus on the wellbeing of people, businesses and the economy. he said in a statement today. .
Based on the latest developments, he said, the country is expected to achieve the projected growth of 5.3-6.3% for 2022, in line with projections by the International Monetary Fund (5.75% growth) and the World Bank (5.5% growth). hundred).
Among the indicators for May 2022 that point to the improvement in the country’s economy is the drop in the number of unemployed to 637,700 from 649,300 the previous month, with the national unemployment rate remaining at 3.9%.
He also noted that the labor market recovery continued to stabilize in May 2022 alongside rising demand for goods and services.
“It has also given more opportunities for businesses to generate revenue again, as evidenced by recent retail and wholesale figures,” he said.
The finance minister also said the industrial production index for May was up 4.1% year-on-year (yoy), driven by electrical and electronic products which rose 15.5%.
“This matched manufacturing sales amounting to RM142 billion (in May), a year-on-year increase of 15.7 percent,” Tengku Zafrul said.
The country’s trade performance also remained resilient and maintained its growth momentum. Trade rose 33.6 percent year-on-year to RM228.4 billion in May, the 16th month of double-digit growth (since February 2021), he noted.
Additionally, he said, data from May 2022 shows wholesale and retail trade recorded the highest sales since 2013, growing 19.9% year-on-year to 129.8 billion. from RM.
“It shows a recovery in domestic demand that continues to strengthen,” he added. — Bernama