Zafrul: No recession expected

Cheerful: Tengku Zafrul (third from right) having a light moment with Customs officers during his visit to Avago Technologies at Batu Kawan, Penang. — Bernama

GEORGE TOWN: Malaysia’s total trade last year surpassed the RM2trillion mark for the second consecutive year at RM2.8 trillion, with exports reaching RM1.6 trillion, says Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The International Trade and Industry Minister said this exceeded 12th Malaysia Plan projections – and with imports reaching nearly RM1.3 trillion.

Tengku Zafrul also said although the country’s economic growth this year was projected to be moderate compared with 2022, he was optimistic that Malaysia would not face a recession.

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“On the issue of recession, I am optimistic there will not be (one). The definition of a recession is two successive quarters of negative GDP (gross domestic product) growth.

“Bank Negara, the International Monetary Fund, and the World Bank have projected Malaysia will continue achieving positive economic growth in the 3% to 5% range.

“I don’t think we are going to face a recession. However, compared with the growth achieved in 2022, there will be some moderation.

“We need to take this opportunity to ensure all of our growth engines keep firing, especially in trade and investment,” he told Bernama during his recent visit to Penang.

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During his two-day visit, Tengku Zafrul said he met with top state officials and industry players to discuss efforts to strengthen the state’s industrial ecosystem as it was a leading investment destination for the electrical and electronics (E&E) and medical technology sectors.

“We need to attract high-quality investments that can provide jobs and increase the national income.

“We also want this FDI (foreign direct investment) to be translated into DDI (domestic direct investment).

“If possible, we want to develop small and medium enterprises that can provide services and become suppliers to multinational corporations operating here.

“Penang is the best example for this, where there are multinational companies working with small firms until these are able to grow and be listed on the stock exchange,” he said.