Ahmad: Malaysia maintaining 4%-5% GDP forecast

KUALA LUMPUR: Malaysia is maintaining its gross domestic product (GDP) forecast of 4% to 5% in 2023, says Deputy Finance Minister I Datuk Seri Ahmad Maslan.

“We appreciate and respect the World Bank’s statement, as it was based on its analysis. But we will keep our forecast at around 4% to 5%, as there has been no change in terms of the projections or if there’s any big growth expected this year,” he said.

Ahmad said this on the sidelines after launching the Malaysia-China Entrepreneur Macro Health Forum and Grand Sian Celebrity Charity Gala Night here yesterday.

The World Bank had lowered its forecast for Malaysia’s GDP growth to a moderate 3.9% in 2023, down from the previous estimate of 4.3% in April 2023.

On Tuesday, World Bank lead economist for Malaysia, Apurva Sanghi, attributed the downward projection to the base effects of high growth last year and weak external demand, reflected in the export numbers for the first two quarters.

He said the outlook for 2024 remains positive, with a forecast growth rate of 4.3%, attributed to the recovery in tourism, improved global economic conditions and the impact of base effects.

Meanwhile, Ahmad said the government’s coffers could accommodate the rice subsidy announced by the Prime Minister on Monday.

He said the ministry would prepare the funds so that issues with the increase in the price of imported white rice and a rise in demand for local white rice could be resolved soon.

“The Prime Minister has announced four intervention measures to help the people and groups cope with rice supply and demand.

“This includes channelling subsidies of between RM350mil and RM400mil for government premises, such as military camps and police and school dormitories, to use imported rice, as a measure to increase local white rice supply in the market,” said Ahmad.

He said some questioned the funding source for these initiatives, “but we have savings from previous projects and increased revenue collections from the Inland Revenue Board and Customs Department to implement these measures.”