Malaysia remains on right trajectory for further economic recovery - MITI

KUALA LUMPUR: Malaysia remains on the right trajectory for further economic recovery boosted by the surge in external demand supported by electrical and electronics (EE), petroleum, rubber products, palm oil and chemical products, the Ministry of International Trade and Industry (MITI) said.

It said this was based on the Bank Negara Malaysia (BNM) report on the country's second quarter of 2021 (Q2 2021) gross domestic product (GDP) which grew 16.1 per cent year-on-year against 0.5 per cent contraction in Q1 2021 with the manufacturing sector stood as the main contributor, recording a growth of 26.6 per cent in Q2 2021 against 6.6 per cent in Q1 2021.

"This is achieved on account of our steadfast commitment to ensure that we effectively weather the challenges of the pandemic and emerge stronger and more resilient," it said in a statement today.

It said in terms of investment performance, a 17.4 per cent jump in private investment in Q2 2021, totalling RM59.3 billion, against the corresponding period last year proved a positive reflection of enhancement in capital expenditure in the services and manufacturing sectors, which is crucial for the preservation of jobs and creation of new job opportunities.

On foreign direct investment, it said the government would continue to attract more high-value investments in technology and innovation to position Malaysia as an alternative supply chain hub in Asia.

"As a result of vigorous and strategically planned trade and investment missions undertaken during the period of January to June 2021, Malaysia secured a total committed investment of RM35.97 billion with the creation of 28,000 job opportunities as well as potential exports value of RM3.4 billion.

"Furthermore, the establishment of the One-Stop-Centre for Business Travelers to ease the movement of investors during the pandemic has facilitated 43 projects with potential investment value of RM115.8 billion," it said.

MITI said export performance in 2021 is forecasted for further growth with the manufacturing sector ramping up production capacity to meet expansion in external demand.

"The government has taken swift and decisive action to ensure that we maintain economic stability and growth as well as manage the country's largest public health crisis," it said.

It added that the government reiterated its commitment to partner with industries and business communities towards building a robust economy and ensuring the continued wellbeing and prosperity of the rakyat.

-- BERNAMA