Floods reduce economic sector output by RM4 billion

KUALA LUMPUR: The Ministry of Finance (MoF) has said that the 2021/2022 northeast monsoon flood disaster that hit the country in December last year caused an estimated reduction of RM4-8 billion in the production value of the economic sector.

Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that although the disaster had a major impact on economic activities, especially in the affected areas, the country’s gross domestic product (GDP) growth forecast remained between 3% and 4% for the whole of 2021. .

Speaking at the Dewan Rakyat Special Session here today, he said the government had taken on board key indicators which showed encouraging signs of recovery.

“The momentum of recovery is expected to continue throughout the year, with our economy expected to continue growing between 5.5% and 6.5%, in line with International Monetary Fund (IMF) and World Bank projections,” did he declare. .

The Special Parliamentary Session on Flood Relief Management addressed issues related to the national interest, namely floods, post-flood, coordination of aid distribution to Malaysian families and the long-term flood management planning.

Tengku Zafrul also pointed out that the IMF and the World Bank target economic growth of between 6% and 5.8% for Malaysia.

“Malaysia’s main growth drivers include the reopening of more economic and social sectors following the nation’s transition to the fourth phase of the national stimulus package,” he added. — Bernama