KUALA LUMPUR (May 25): Malaysia can achieve its 2021 gross domestic product (GDP) growth target of between 6% and 7.5% if the Covid-19 health crisis can be stabilised after the eventual lifting of the Movement Control Order (MCO 3.0).
Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the availability of vaccines and a comprehensive vaccination rollout for Malaysians would have a positive impact on the country’s economy.
“So, if we assume that the percentage of Malaysians vaccinated goes according to schedule or can be accelerated, while the Covid-19 situation can be placed under control, then we will be able to see a positive decline in infections.
“And this will definitely have a positive impact on the position of the Malaysian economy,” he told a press conference that delves into the country’s economic indicators: Leading, Coincident and Lagging Indexes for March 2021 here today.
The Leading Index (IP) surged 17.3% in March 2021, much higher than an increase of 8.2% in January and 8.6% in February.
Mustapa said the good performance was in line with the country’s GDP growth of 6% in March 2021.
He said this growth momentum would be affected if the government decided to implement full-scale movement restrictions from May 25 to June 7, 2021.
“Full-pledged movement restrictions will cause the unemployment rate to rise sharply, the number of poor households will increase, the performance of small and large companies will be affected, and the fiscal position will be in a more challenging condition,” he said.
Mustapa said during an engagement with industry representatives, micro, small and medium enterprises, and hawker associations on May 22 and 23, 2021, most of them agreed with the government’s decision to implement MCO 3.0.
