Malaysia’s International Trade & Industry (MITI) issued a statement to the media that although the country’s economic growth this year is expected to be moderate, they are optimistic the country will not go into recession.
Bank Negara Malaysia, the International Monetary Fund and the World Bank have projected the country will continue achieving positive economic growth in the range of 3 to 5 percent which is deemed as satisfactory.
The definition of a recession is two successive quarters of negative GDP growth which independent economists concurred with the ministry that it is unlikely to happen as Malaysia’s economic fundamentals remain strong.
Malaysia’s total trade last year surpassed the RM2trillion mark for the second consecutive year at RM2.8 trillion and with exports reaching RM1.6 trillion. This exceeded the 12th Malaysia Plan projections.
Although this year’s economic growth is projected to be lower, efforts are being beefed up to boost the various sectors of the economy and the ministry is focusing on assisting businesses to achieve higher economic growth especially SMEs.
Although the economic outlook still remains good, Malaysians are being advised to tighten their belts as these are leaner times and they are also being advised not to be complacent but to be prudent and wise in managing their household finances.