Floods reduce economic sector production by RM4bil-RM8bil

KUALA LUMPUR: The Finance Ministry (MoF) said the Northeast Monsoon 2021/2022 flood disaster that hit the country in December last year has caused an estimated RM4 billion-RM8 billion reduction in the economic sector’s production value.

Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said although the disaster had a major impact on economic activities, particularly in the affected areas, the country's gross domestic product (GDP) growth forecast remained between three per cent and four per cent for the whole of 2021.

Speaking at the special sitting in the Dewan Rakyat here today, he said the government had taken into account key indicators which showed encouraging signs of recovery.

"The recovery momentum is expected to continue throughout the year, with our economy expected to continue to grow between 5.5 per cent and 6.5 per cent, in line with the projections of the International Monetary Fund (IMF) and the World Bank," he said.

The Special Parliamentary Sitting on Flood Relief Management discussed matters related to the national interest, namely the floods, post-flood, coordination of aid distribution to Malaysian families and long-term flood disaster management planning.

Tengku Zafrul also highlighted that the IMF and World Bank are targeting economic growth of between six per cent and 5.8 per cent for Malaysia.

"The main drivers of Malaysia's growth include the reopening of more economic and social sectors following the nationwide transition to the fourth phase of the national recovery plan," he added. - Bernama