• BNM projects 2022 GDP growth to be between 5.3% and 6.3%

• Growth prospects depend on domestic recovery

• Growth outlook also underpin by targeted policy supports

• Private consumption to anchor growth in 2022

• Public investment to rebound 9.6% in 2022

• Investment activity to rebound, driven by better demand conditions

• Exports of goods and services to expand 4.8% on sustained external demand

• Current account to remain in surplus

• Headline inflation to average +2.2% - +3.2%; core CPI +2.0% to +3.0%

• Current account surplus to widen to 4.2% - 4.7% of GDP

• Malaysian economy is expected to improve further

Negara Malaysia (BNM) expects the Malaysian economy to grow between 5.3% to 6.3% in 2022, following a growth of 3.1% in 2021, underpinned by continued external demand and return of domestic demand.

BNM said that the domestic economy would be underpinned by continued expansion in global demand and improvement in domestic economic activity. The improvement in domestic demand would translate into a rebound in domestic activities mainly in services sectors that contribute the biggest portion of Gross Domestic Product (GDP). The growth also would be supported by external demand, the absence of pandemic-related measures, the reopening of international borders, and a further improvement in labor market conditions.

The comprehensive and complementary policy support will continue to reinforce the economy through both fiscal and monetary stimulus. The accommodative policy support will be the main tool to provide ample liquidity and financial support to the economic agents which eventually improve the broad base income. Apart from that, Bank Negara said the COVID-19 developments remain key in influencing Malaysia’s growth trajectory in 2022, as well as the ongoing geopolitical conflicts and elevated cost and price pressures.

Source: BIMB Securities Research - 31 Mar 2022