MALAYSIA’S economy is expected to rebound next year as activities in the manufacturing, services and agriculture sectors have picked up, Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed said. 

He said the oil and gas sector has also performed slightly better over the last few months. 

“For 2022, we are a bit bullish about prospects as trade and investment have done well. So overall, I want to say that looking at supply side, whether it is manufacturing or agriculture or mining, there are evidence of pick-up and all these indicators are pointing to a good recovery next year,” he said after the Advocacy Talks: Economic Planning Unit (EPU) briefing on the 12th Malaysia Plan to Eurocham Malaysia in Kuala Lumpur today. 

“We are cautiously optimistic and this is relevant in the context of domestic consumption and investment. We foresee a revival in domestic investment, and in domestic consumption as well.”

However, he said for as long as international borders are closed, it would be quite difficult to have full economic recovery, but Malaysia remained optimistic with its gross domestic product growth projection of 5.5 to 6.5% for 2022.

“Of course, the borders are gradually opening with Singapore as it is an important partner for Malaysia. We hope it will progress well and we are also talking to Indonesia and Thailand as well,” he said. 

Earlier in his keynote address, Mustapa reiterated that under the 12MP, Malaysia aspired to be a high-income country and have a better quality of life by 2025. 

In order to be a high-income nation, he said Malaysia needs to attract higher quality investment, and talent is key in making the nation a more attractive investment destination.

“So to be high-income nation, next we need to create more high-quality investment and provide quality human capital. We want to create a very comfortable environment for our friends from overseas,” he said. 

“We want to be sure that your stay here, experience here is hassle-free. We want to facilitate your investment. Of course, we have issues sometimes but the Malaysian government is open to discussing openly and frankly with our colleagues from Europe and many other parts of the world.”

Mustapa said Malaysia has been partnering with some institutions in Europe such as Technical and Vocational Education and Training (TVET) to bring in better quality technical people to Malaysia. 

He said there is a need for Malaysia to supply adequate quality human capital and one of the approaches it is taking under the 12MP is to transform the TVET sector to put it in a better position to cater for the needs of industries, particularly manufacturing. 

He said Malaysia is committed to doing a lot more to create a more conducive environment for the growth of manufacturing, advanced electrical and electronics and various other sectors of the economy. – Bernama, December 13, 2021.