Continued economic recovery trend shows success of govt policies - PM Muhyiddin

With the implementation of the National Recovery Plan (NRP) and the accelerated National COVID-19 Immunisation Programme, the Malaysian economy was expected to recover gradually, he said.

"Today, we have announced that Malaysia's economy expanded by 16.1 per cent in the second quarter (Q2) of 2021," he said in a special televised address today.

Earlier, in announcing the country's latest economic performance, Bank Negara Malaysia said the reopening of the economy would support a gradual recovery in the fourth quarter of this year.

The central bank added that the recovery was expected to accelerate further in 2022, supported by a gradual normalisation of economic activities as well as positive spillovers from continued improvement in external demand.

Muhyiddin said the growth in Q2 2021 was supported by Budget 2021 as well as the government's stimulus and assistance packages.

"The financial and capital markets also demonstrated strong resiliency in Q2 2021. The target of fully vaccinating 50 per cent of the total adult population by end-August will enable the country to resume economic and social activities more broadly to drive the national economic recovery.

"I strongly believe we will heal this nation together and bring back its glory," he said.

Meanwhile, the prime minister said that in upholding the whole-of-government and whole-of-society principles in combatting the COVID-19 pandemic, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz had held engagement sessions with opposition parties' leadership to obtain input and recommendations to improve the NRP.

"In that regard, the Finance Ministry has studied and agreed to several recommendations and input that were made.

"In line with the recommendations received, the government will table, for Parliament approval, a RM45 billion increase in the ceiling for the COVID-19 Fund from RM65 billion to RM110 billion, as approved by Parliament last year," he added.

Muhyiddin said that to support business sustainability and economic recovery, the additional funds provided for the COVID-19 Fund would be used to help incentivise the hiring of workers as well as raise financing for the small and medium enterprises, especially for them to seize opportunities following the reopening of the economy in line with the implementation of the NRP.