IN a statement today, Economic Minister Rafizi Ramli said the Government is taking all the precautions necessary to prepare the country against the economic disruption that is expected in 2023.
“So far, the unity government’s decisions over the last month have all been geared toward protecting and assisting, particularly small businesses and those in need,” he said.
The government has spared SMEs and other small businesses from the increase in electricity tariffs, he said.
“Similarly, if you look at the gas tariff announced last week, there is a slight decrease depending on whether SMEs use the gas supply or not.
“So far, the government’s approach has been to maintain as much of our government’s ability and help SMEs as possible,” added Rafizi.
He assured that with the economic uncertainties and global disturbances, the government will always prioritise the common people, and the steps taken are in this direction.
Analysts are saying Malaysia’s Gross Domestic Product growth will also ease from +8% in 2022 to +4.2% this year. Growth in the first three quarters of last year has been remarkable and was facilitated by the reopening of the economy and the better-than-expected post-pandemic recovery in domestic economic activities.
But in 2023, it will be the negative global economic prospects that will have an impact on Malaysia’s economic growth.
To that end, Rafizi said the current development of COVID-19 in China, which is approaching a pandemic, is being closely monitored by the Ministry of Economy.
Rafizi further added the spread of the new variant of the COVID-19 virus in the country will definitely affect the world because China is the second largest economy in the world.
According to Rafizi, Malaysia is a trading country, so of course everything that happens in the world will have an effect on us.
“China is the second largest economy in the world, and of course we have to pay close attention to the development of the COVID-19 situation there because, if you look at the last two years, many things that happened in China have had an impact on the whole world, including Malaysia.
“Including the sudden increase in the price of certain goods because most of the manufacturing activities go in and out of China. If the COVID situation in China has an effect on that country, then it has an effect on us.” — Jan 1, 2022
