Malaysia`s GDP could grow between 5.5-6.5pc in 2022 says MIDF Research

2021.11.23 14:55:39

MIDF head of research Imran Yassin Md Yusof said this could inadvertently spur the local job market as consumers would be eager to reinvigorate their 이미지 확대

MIDF head of research Imran Yassin Md Yusof said this could inadvertently spur the local job market as consumers would be eager to reinvigorate their "splurging" domestically.

KUALA LUMPUR: Malaysia`s gross domestic product (GDP) could grow between 5.5 per cent and 6.5 per cent in 2022 due to pent up demand arising from the opening of the local economy.

MIDF head of research Imran Yassin Md Yusof said this could inadvertently spur the local job market as consumers would be eager to reinvigorate their `splurging` domestically.

"The economy was adversely affected by various lockdown periods this year, reflecting a 4.5 per cent contraction in the third quarter (Q3).

"Since the government has allowed most of the businesses to reopen, consumers would want to go out and spend," he said during a panellist session at Permodalan Nasional Bhd (PNB) Minggu Saham Digital (MSD) 2021 on Friday.

Imran said the local economy is on a better footing as most businesses began to resume their activities by adhering to standard operating procedures (SOPs).

"We expect the fourth-quarter GDP to increase and economic activities to be better due to pent up demand," he said.

However, Imran remained cautious on the economic outlook next year, attributing to potential inflation in the United States (US) and the resurgence of the new Covid variant and the weakening of the property sector in China.

"If it goes high than expected, the Federal Reserve might need to raise the interest rate, then we have to follow suit and financing cost will be higher," he said.

MIDF head of development finance division Azizi Mustafa said small-medium enterprises (SMEs) would need to review their business strategies to remain relevant post-pandemic.

"We are entering the recovery phase for the health and economy. Therefore, SMEs should reflect on whether their business strategies and product offerings are still relevant.

"They also need to review their sales and marketing strategies as well as supply chain," he said.

Azizi said SMEs would have to adapt to the new norm and think forward while capitalising on opportunities to change their business strategies and plan to make them more relevant to weather future shocks.

"Digitalisation and transformation have to be in phases and not merely to jump on the bandwagon. Business owners have to plan properly for the short-mid to long-term to avoid wasting resources and capital," he said, adding that it has to suit their objectives to get their investment returns.

Azizi said business strategies would be dependent on supply and demand sides – whether to grow or scale down.

"If there is opportunity to grow business, they should look at the demand side such as the electronic and medical devices.

"If business is not that good, they should reboot the businesses to sustain. However, it is not wise to start growing the business despite a lower profit rate environment," he added.

Meanwhile, MIDF head of digitalisation, Khairi Shahrin Arief Baki said novice investors should start small and know their investment objective before investing.

"Investment is about long-term planning, and they need to understand these fundamentals. They have to act now and must lay the foundation," he said.

He said investors should also be aware of fraudulent activities and remain vigilant before investing.

"They (investors) need to check on Bank Negara Malaysia and the Securities Commission websites to authenticate investment schemes, which are highly regulated and registered under these regulators," he added.

https://www.nst.com.my/business/2021/11/747613/malaysias-gdp-could-grow-between-55-65pc-2022-says-midf-research

By New Straits Times

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