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ANNUAL REPORT 2021 39
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

2022 - Getting Back on Track Despite the global situation however, the Malaysian economy has stayed resilient
and grew by 5.0% in the first quarter of 2022 (4Q 2021: 3.6%). This positive
The Russian and Ukraine war has put a growth is attributed to a variety of positive factors, including the relaxation
severe dent in the recoveries of many of containment measures, recovery in the job market, expansion in external
nations globally, with the war contributing to demand and continued policy support, with the unemployment rate declining
worldwide inflation and the rapid increase further to 4.1% (4Q 2021: 4.3%).
of food and fuel prices. As a result of this
ongoing war, global growth is projected Source: Russia-Ukraine war may have ‘direct muted impact’ on M’sian economy, says think
tank | The Star
to slow from an 5.5% in 2021 to 3.6% in 2022.
Having one of the faster vaccination programmes in the region, 81.9% of
World Economic Outlook April 2022/Growth Projections
Malaysia’s total population has been fully vaccinated, while 68.2% of the adult
population has taken a booster dose as of 5th May 2022. In addition, 43.3% of
World the children population aged 5 to 12 have completed at least one dose, with
25% completing two doses.
5.5 3.6 3.6
Source: CORONAVIRUS – The situation in Malaysia | Flanders Trade

As society slowly returns to normalcy amidst this endemic phase and the
relaxation of COVID-19 regulations, the improvements in current economic
conditions saw the coincident index accelerating to 5.5% year-on-year - the
fastest growth rate since May 2021, when the economy also temporarily
reopened before another lockdown.
2021 2022 2023
Source: MIDF Research: Malaysia’s economy to benefit from border reopening | Malay Mail
Emerging and Developing Asia
In 2022, the domestic economy is expected to remain on its recovery path
7.3 5.4 5.6
supported by the continued expansion in global demand and higher private
sector expenditure, improving labour market conditions and ongoing policy
support. With Malaysia transitioning into the endemic phase since 1 April 2022,
continuation of significant investment projects in both private and public sectors
are expected to also support growth.

The economic growth moving forward will also be supported by the Malaysian
Budget 2022 and the 12th Malaysian Plan (12MP). The Malaysian budget
2021 2022 2023 2022 tabled end of October 2021 with its theme ‘Keluarga Malaysia, Makmur
Sejahtera’ (A Prosperous Malaysian Family) will focus on speeding up the
Source: World Economic Outlook, April 2022: economic recovery, rebuilding up national resilience and catalysing reform as
War Sets Back The Global Recovery
well as driving socio-economic recovery activities and the national development
agenda. These initiatives are consistent with the strategic direction outlined
earlier in the 12MP which aims to achieve a Prosperous, Inclusive and Sustainable
Malaysia.
With the announcement of Budget 2022, the Government expected the GDP
growth to be between 5.5% and 6.5% in 2022, higher than 4.5%-5.5% forecasted
previously in September 2021, following reopening of more economic and social
sectors.