KUALA LUMPUR, 17 August – Malaysian Finance Minister Tengku Zafrul Abdul Aziz said the country’s economic growth will be facing a challenge in this year’s fourth quarter due to the Russian invasion of Ukraine and China’s zero-tolerance policy on COVID-19.
The Minister said in an interview with American broadcaster CNBC the challenge comes from the fact that China is Malaysia’s biggest trading partner and disruptions to supply chains and trade will “dampen some of the growth expectations in the fourth quarter of this year for Malaysia.”
“I’m still very optimistic that we will get to the forecast GDP number of between 5.3 and 6.3 per cent… Probably at the top end of that 6.3 per cent,” he said, referring to the gross domestic product,” he added.
“Domestic consumption has gone strong, much stronger than we expected,” he added.
Tengku Zafrul added that while the impetus of growth for July to September should be strong, this, he said, could be the result of a negative base effect from the same period in the previous year.
Malaysia’s nominal GDP rose by 8.9 per cent in the second quarter of 2022 compared to the previous quarter, with the real GDP closer to 3.5 per cent.