KUALA LUMPUR, Aug 6 — The Malaysian economy is on the right track despite the risk of a recession in the United States, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
“The real economy is the most important. That is why we look at the gross domestic product, and Malaysia is indeed strong.
“We are on the right track and will continue to grow,” he said to reporters after officiating the Retirement Fund (Incorporated) Inspire 2024 Conference today.
He was responding to questions about the potential impact of a United States recession on the national economy.
Amir Hamzah said a projection by the Statistics Department that the country’s economy will grow by 5 per cent in the first half of 2024 is higher than the Finance Ministry’s expectation of a 4 to 5 per cent growth.
“That is why the ringgit has strengthened, not only because the United States wants to cut interest rates, but because of good policies developed by the government.
“We are seeing a lot of positive developments. Confidence levels are also increasing,” he explained.
He described the fall of the global stock markets yesterday after overcorrection as temporary, with Bursa Malaysia staging a recovery today.
“It happened across the world as several events happened, such as the slightly higher projection of the US unemployment rate, causing a drop in confidence.
“There is also an expectation that the US will cut interest rates. We see there are trading positions taken. The market is down because of the settlement that took place,” he explained.
At 12.19pm today, the FTSE Bursa Malaysia KLCI surged 30.85 points to 1,567.33 from 1,536.48 at the close yesterday.
— Bernama
