MALAYSIA is not expected to experience economic turmoil in 2023 amid an anticipated global slowdown, Deputy Finance Minister Ahmad Maslan said today.

He said that the government expects the country’s economy to grow around 4.5%.

“Even the International Monetary Fund and the World Bank also project Malaysia’s 2023 economic growth rate to be at 4.4% and 4% respectively. 

“This expectation is in line with the projected slower global economic and trade growth this year. 

“Based on this status, despite facing the challenge of global uncertainty, I would like to emphasise that Malaysia, God willing, will not experience economic turmoil in 2023,” the Pontian MP said in the Dewan Rakyat today. 

In October last year, the International Monetary Fund forecast an economic growth rate of 4.4% for Malaysia, meanwhile World Bank projected the growth to be at 4%, following a stronger-than-expected recovery of 7.8% last year.

Ahmad was responding to Idris Ahmad (Bagan Serai-PN) who asked about the government’s plan in facing economic challenges in 2023. 

He said the government will continue to prioritise the country’s economic growth and fair development for the people by making Malaysia a more attractive investment destination and this will be done by simplifying investment processes. 

“This will create more highly innovative start-ups and more jobs with decent income,” he said. 

The deputy finance minister added that the government has allocated up to RM64 billion in subsidies, aids and incentives to help the people. 

“This is done through the Rahmah cash aid costing almost RM8 billion, which is expected to benefit some 9 million people with a maximum aid value up to RM3,100. 

“Under the Rahmah umbrella concept, the government also helps reduce subsistence costs through the Rahmah Menu programme as well as Rahmah sales that offer prices that are 30% cheaper than market prices,” he said. 

Ahmad said the government is also providing various grants, incentives, loan facilities and financing guarantees with an allocation of close to RM40 billion this year for micro, small and medium enterprises (MSMEs).

He further said the MSME tax rate on taxable income for first RM150,000 has been reduced to 15% from 17% for assessment year 2023.

He said the government also announced a 2% cut in individual tax for the RM35,000 to RM100,000 taxable income band, which could save an individual from the M40 group up to RM1,300 a year. – March 6, 2023.