MOF: Efforts Underway to Strengthen Nation Towards Reform Stage | Daily Express Online

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MOF: Efforts Underway to Strengthen Nation Towards Reform Stage

Posted on: Saturday August 14, 2021

By: Bernama

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Kuala Lumpur: Efforts are underway to strengthen the nation’s strategic levers to move to the reform stage, which includes the new approach taken by the Ministry of Finance to improve the country’s annual budget process to make it more transparent and inclusive, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said. He said that among other things, the ministry will issue a pre-budget statement that sets out the themes and focus areas of the 2022 budget, namely boosting economic recovery, rebuilding the country’s resilience and catalyzing reforms. “Going forward, with the launch of the Fourth Industrial Revolution (4IR) National Policy, digitalization and technological adoption will be a national priority to strengthen Malaysia’s long-term economic prospects and resilience, in line with the Malaysian digital economy plan, ”he said. in a statement in conjunction with the release of second quarter gross domestic product data by Bank Negara Malaysia (BNM).

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Tengku Zafrul said that this also goes hand in hand with the ongoing structural reforms of the government in the medium term through the implementation, among others, of the National Investment Aspirations (NIA) framework, as well as the Perkukuh Pelaburan Rakyat initiative. In addition, the 12th Malaysian Plan (2021-2025) will provide a model for sustainable growth, aimed at strengthening socio-economic inclusion and environmental sustainability. “All of these policy initiatives are also aligned with the country’s long-term development policy, the Shared Prosperity Vision 2030.” The finance minister noted that the outlook for the third quarter of 2021 is expected to be quite difficult, given the improved two-week MCO taxation in most areas of the Klang Valley in July as well as the extended Phase 1. of the national recovery plan. (PNR) in several states that contribute significantly to the country’s gross domestic product. Nonetheless, the impact would be cushioned by the ease of restrictions for those fully immunized as well as for states that have successfully transitioned to phases 2 and 3.

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“The outlook for the fourth quarter (Q4 2021) should improve, underlined by a gradual recovery after the reopening of more economic and social sectors as more people are vaccinated. “It will also reduce the burden on the health care system by reducing admissions to hospitals and intensive care,” he said. Developing further, he said that other factors that will boost Malaysia’s economic recovery include improving external demand from major trading partners, recovering commodity prices as well as implementing projects to high impact multiplier infrastructure. These factors will support Malaysia’s economic fundamentals, which remain resilient even in these difficult times, underpinned by the growing sophistication, depth and diversity of the Malaysian economy where the services and manufacturing sectors account for over 80% of the economy. economy. Manufacturing and exports are expected to benefit from the current strong global demand for electrical and electronic (E&E) products, hydrocarbons such as crude oil and natural gas, and personal protective equipment. “With all of these factors combined, GDP growth for 2021 is expected to be between 3.0% and 4.0%, as announced by the BNM earlier on Friday.” In conclusion, he said the government’s current priority is to protect lives from the threat of Covid-19 and ensure that the country’s economic growth prospects remain strong in the medium to long term, guided by the PNR and underpinned by the principles of prudent financial management. “The government will continue to respond strategically, proactively and decisively in this difficult Covid-19 environment, while minimizing the ongoing economic repercussions of the crisis. ”


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