Malaysia’s outlook in 2022: Five risks to watch

Since the economic reopening, the general mood and sentiment have turned positive as consumers are allowed to travel interstate and this has aided domestic-tourism. People mobility and traffic indicators have been showing signs of revival despite concerns about the Omicron variant.

TWO years into the Covid-19 pandemic, the Malaysian economy is now coming out of its trough after shrinking 4.5% in the third quarter of 2021. It is on a path to recovery in 2022, supported by the reopening of economic and social sectors.

The worst floods in decades in some states have tempered the recovery in late December 2021 and early 2022. We estimate real GDP to grow by 5.2% in 2022, an improvement from the estimated 3.4% in 2021.