KUALA LUMPUR: The Malaysian economy is on the right track despite facing the risk of a recession in the United States (US), said Finance Minister II Datuk Seri Amir Hamzah Azizan.
"The real economy is the most important. That is why we look at the gross domestic product (GDP), and Malaysia is indeed strong.
"We are on the right track and will continue to grow," he said to reporters after officiating the Retirement Fund Inc.'s (KWAP) Inspire 2024 Conference today.
He was responding to questions about the potential impact of a US recession on the national economy.
Amir Hamzah said the projection by the Department of Statistics Malaysia (DoSM) that the country's economy would grow by 5.0 per cent in the first half of 2024 is at the highest level compared to the Ministry of Finance's expectation of 4.0 per cent - 5.0 per cent.
"That is why the ringgit has strengthened, not only because the US wants to cut interest rates but also because of the good policies developed by the government.
"We are seeing a lot of positive developments. Confidence levels are also increasing," he explained.
He also described the fall of the global stock markets yesterday following overcorrection as temporary, with Bursa Malaysia's performance staging a recovery today.
"It happened across the world because several events happened, such as the slightly higher projection of the US unemployment rate, causing a drop in confidence.
"There is also an expectation that the US will cut interest rates. We see that there are trading positions taken, hence the market is down because of the settlement that took place," he explained.
At 12.19 pm today, the FTSE Bursa Malaysia KLCI (FBM KLCI) surged 30.85 points to 1,567.33 from 1,536.48 at the close on Monday.