The perfect storm is hitting the economy from all directions.
The current state of the global economy is concerning. Inflation is increasing and the global economy is experiencing tightening monetary and fiscal policy in response to rising commodity and food prices.
Prolonged geopolitical tensions, including the Russia-Ukraine war and the South China Sea and Taiwan disputes, are leading to constant supply chain disruptions.
The gap for equitable distribution of wealth has widened throughout the pandemic – the impact on social polarisation stemmed from the Covid-19 pandemic is not over.
Malaysia is still resilient and competitive.
Malaysia’s current standing is in a better footing at present. GDP growth has increased for 3 consecutive quarters, with an anticipation to meet and even exceed the official 2022 GDP projection.
The Government and Ministry of Finance strive to be responsive to the short term needs of people and business, while being responsible in building resilience.
Reformist policies are continuously being crafted to address structural issues. This includes expanding social safety net frameworks; reforming investment policies through the development of the National Investment Aspirations; and strategically positioning the country to maintain a growth trajectory despite ongoing supply chain reorganisation.
Think outside the box to weather the perfect storm.
We need to strengthen the ASEAN network to build resilience against rising global geopolitical tensions. Such a network will result in a strong ASEAN-wide supply chain which ensures the public’s food and energy security.
To prevent the economic pains of a weakening currency, nations of the world should create a viable International Monetary Cooperation Mechanism. Today’s currency system neglects the unique needs of smaller economies. All nations should cultivate a sense of responsibility and justice towards global economic growth.
Malaysia remains committed to aligning economic development with the global ESG trend. Aside from reforms in financing, decarbonisation market reforms such as the implementation of a carbon pricing mechanism and a climate change bill should be in the pipeline.