Ministry of Finance: Floods reduced economic sector output from RM4b to RM8b

KUALA LUMPUR (January 20): The Ministry of Finance (MoF) said the northeast monsoon flood disaster that hit the country in December last year resulted in an estimated reduction of 4-8 billion of RM of 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 2021.

Speaking at the Dewan Rakyat special session here on Thursday (January 20), he said the government had taken on board key indicators that 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 national transition to the fourth phase of the national stimulus package,” he added.

For more articles on Parliament, click here.