Image credit: Malay Mail
KUALA LUMPUR: Malaysia remains on the right trajectory for further economic recovery, boosted by the surge in external demand supported by electrical and electronics (E&E), petroleum, rubber products, palm oil and chemical products, the Ministry of International Trade and Industry (Miti) said.
It said this was based on the Bank Negara Malaysia (BNM) report on the country’s second quarter of 2021 (Q2 2021) gross domestic product (GDP) which grew 16.1% year-on-year against 0.5% contraction in Q1 2021 with the manufacturing sector stood as the main contributor, recording a growth of 26.6% in Q2 2021 against 6.6% in Q1 2021.
“This is achieved on account of our steadfast commitment to ensure that we effectively weather the challenges of the pandemic and emerge stronger and more resilient,” it said in a statement today.
Miti said that in terms of investment performance, a 17.4% jump in private investment in Q2 2021, totalling RM59.3 billion, against the corresponding period last year proved a positive reflection of enhancement in capital expenditure in the services and manufacturing sectors, which is crucial for the preservation of jobs and creation of new job opportunities.
On foreign direct investment, the ministry said the government will continue to attract more high-value investments in technology and innovation to position Malaysia as an alternative supply chain hub in Asia.
“As a result of vigorous and strategically planned trade and investment missions undertaken during the period of January to June 2021, Malaysia secured a total committed investment of RM35.97 billion with the creation of 28,000 job opportunities as well as potential exports value of RM3.4 billion.
“Furthermore, the establishment of the One-Stop-Centre for Business Travelers to ease the movement of investors during the pandemic has facilitated 43 projects with potential investment value of RM115.8 billion,” it said.
Miti said export performance in 2021 is forecast to post further growth with the manufacturing sector ramping up production capacity to meet expansion in external demand.
It said the performance of the E&E, rubber glove and medical device sectors is expected to be given a further boost on account of continued robust demand for these products arising from the Covid-19 pandemic.
“The government has taken swift and decisive action to ensure that we maintain economic stability and growth as well as manage the country’s largest public health crisis,” Miti said.
It added that the government reiterated its commitment to partner with industries and business communities towards building a robust economy and ensuring the continued well-being and prosperity of the rakyat.
Source: https://www.thesundaily.my/business/miti-malaysia-remains-on-right-trajectory-for-further-economic-recovery-GA8211910