Malaysia: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Malaysia

Volume/Issue: Volume 2022 Issue 126

Publication date: April 2022

ISBN: 9798400206696

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Exports and Imports , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , International - Economics , inflation expectation , transitory inflation pricing , staff statement , authorities project headline inflation , Ukraine-Russia conflict , COVID-19 , Anti-money laundering and combating the financing of terrorism (AML/CFT) , Tax refunds , Global

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Summary

Malaysia’s economy is showing signs of a gradual yet steady recovery thanks to the authorities’ impressive vaccine rollout, swift and coordinated implementation of multi-pronged support measures. The recovery nevertheless remains uneven and the output gap sizeable, with significant downside risks. Going forward, the authorities should calibrate macroeconomic policies to the pace of the recovery, while preserving policy space given pandemic-related uncertainties, and simultaneously accelerate structural reforms.