Malaysia's GDP to grow up to 4.2pct this year

PUTRAJAYA: Malaysia’s gross domestic product (GDP) is expected to grow between 3.2 per cent and 4.2 per cent this year, bogged down by the impact of the coronavirus outbreak.

Interim Prime Minister Tun Dr. Mahathir Mohamad believes a RM20 billion economic stimulus package unveiled today would enable the economy to achieve the highest point of the range. 

“In formulating the stimulus package, the government exercised prudence with respect to its fiscal position. 

“As a result, our fiscal deficit is estimated to slightly increase to 3.4 per cent of GDP compared to the original target of 3.2 per cent,” Dr Mahathir said at a press conference after announcing the stimulus package here.

He said the package would not be able to be delivered by the government alone.

“Therefore, the government calls on the private sector to play their part in ensuring the stimulus package is successful,” he added.

In 2003, Malaysia experienced a similar situation with the outbreak of the Severe Acute Respiratory Syndrome that began in East Asia, which had seen tourist arrivals plunging regionally. 

That played a role in bringing Malaysia’s GDP growth down from 7.1 per cent in the third quarter of 2002 to 4.6 per cent in the same quarter a year later. 

“However, as a result of the comprehensive economic stimulus package, the Malaysian economy recovered to 6.5 per cent in fourth quarter of 2003. Insya-ALLAH, the 2020 economic stimulus package will be as successful,” he added.

Dr. Mahathir also called on the rakyat to remain steadfast, brave and diligent in prevailing over the current challenges and emerge even stronger after this episode.

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