Malaysia’s economy sees best growth in 22 years

The public and analysts don’t all agree with the level of optimism amid risks and difficult daily life of many, but central bank says no 2023 recession due to strong economic progress

Full-year growth came in at 8.7 per cent in 2022, almost triple the previous year, and the quickest pace since the 8.9 per cent expansion in 2000

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People dine at a restaurant near the Petronas Twin Towers in Kuala Lumpur, Malaysia. The nation is seeing strong economic growth, although not everyone is feeling the effect. File photo: Reuters

Published: 8:30pm, 10 Feb 2023

Malaysia’s central bank on Friday said the economy would not fall into a recession this year, announcing stronger-than-expected growth in 2022 as the country finds a stronger footing to edge out of the pandemic-induced economic crisis of recent years.

Some analysts are warning against too much optimism, noting that domestic demand remained muted and there were risks for its important electronics industry arising from lay-offs and overall poor sentiment surrounding the global tech sector.

Full-year growth came in at 8.7 per cent in 2022, according to data compiled by the Department of Statistics Malaysia, nearly triple the 3.1 per cent recorded the previous year and the quickest pace since the 8.9 per cent expansion in 2000.

Bank Negara Malaysia (BNM), the central bank, had earlier forecast full-year growth to come within the range of 6.5-7 per cent.

Central bank Governor Nor Shamsiah Mohd Yunus said a recession was not expected in 2023 as the global economy has continued to grow despite earlier expectations of a worldwide slump due to the combined effects of the Ukraine war, global supply chain disruptions and red-hot inflation over the past year.

“We are going to see continued recovery in the labour market, and employment and income will continue to grow,” she told a press conference.