KUALA LUMPUR, Aug. 12 (Xinhua) -- The Organization for Economic Cooperation and Development (OECD) on Thursday projected Malaysia's economy to grow by 4.3 percent in 2021 and 6.1 percent in 2022.
OECD said in its third economic survey of Malaysia that the Malaysian economy is on the road to recovery from COVID-19, although risks remain from the ongoing crisis.
"Malaysia was experiencing solid growth prior to the pandemic. With sales of electronic and health-related goods bouncing back, and policy support propping up domestic demand, the survey projects Malaysia's gross domestic product growth to rebound to 4.3 percent in 2021 and 6.1 percent in 2022, following a drop in economic activity of 5.6 percent in 2020," it said.
It also said that continued reforms to improve the business environment further and accelerate digitalization are required for Malaysia to return to pre-pandemic growth rates.
It noted that high unemployment in the wake of the crisis poses a challenge to Malaysia, along with weak productivity growth.
"In the short-term, accelerating the vaccination program is crucial. Policy support for people and firms should continue until the recovery is well-established."
"Malaysia should then resume its pre-pandemic efforts to boost productivity by easing regulatory and administrative burdens and accelerating firms' adoption of digital technologies," it said.
Over the medium-term, it said, a fiscal consolidation strategy will be vital to reduce public debt and prepare for growing health and economic costs from Malaysia's ageing population. Enditem
