Based on the 2022 economic performance the government expects the country to experience a growth of 4.5 per cent and as such Malaysia would not experience economic turmoil in 2023.
Deputy Finance Minister, Datuk Seri Ahmad Maslan said, the International Monetary Fund (IMF) and the World Bank have also projected that the country’s economic growth will be at 4.4 per cent and 4 per cent respectively.
“The government’s expectation is in line with the forecast of economic growth and global trade which is projected to be slower this year.
“Despite facing the global uncertainty, I wish to stress that Malaysia will not experience economic turmoil in 2023, InsyAllah (God willing),” Ahmad said at Dewan Rakyat today (Monday).
The deputy minister was responding to a question from Datuk Idris Ahmad (Perikatan Nasional-Bagan Serai) who asked the government’s plan in facing economic turmoil and whether it is ready to provide incentives and assistance.
Ahmad added the technical definition of economic turmoil or recession is when a country recorded two consecutive quarters of negative growth.
He also said, facilitating investment processes, creating more highly innovative start-ups and more job opportunities with commensurate wages will be the continuous efforts of the Unity Government to make Malaysia more attractive investment destination.
Ahmad also mentioned that RM64 billion had been allocated for subsidies, aids and incentives that includes Rahmah Cash Contribution (Sumbangan Tunai Rahmah) and Menu Rahmah.
“The government has also helped to revive MSMEs post COVID-19 by reducing the MSMEs tax rate on taxable income for the first RM150, 000 from 17 per cent to 15 percent.
“The M40 group has also been assisted by the government via reduction of tax rate by two percentage points for taxable income between RM35, 000 and RM100, 000.
“The disposable income of the M40 group is expected to increase up to RM1, 300 per year with the reduction of tax,” he said. –Malaysia World News