Malaysia: 2023 Article IV Consultation-Press Release and Staff Report

Author: International Monetary Fund. Asia and Pacific Dept

Volume/Issue: Volume 2023 Issue 185

Publication date: June 2023

ISBN: 9798400243820

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Topics covered in this book

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Exports and Imports , Inflation , Money and Monetary Policy , Public Finance , Business and Economics - Statistics , International - Economics , inflation expectation , PPI weight , balance of payments position , coverage ratio , Malaysia's obligation , asset forfeiture regime , Inflation , Global

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Summary

Malaysia registered a strong economic recovery in 2022, backed by its well diversified economy, sound policy frameworks, and commodity exporter status. While monetary policy started a gradual post-pandemic normalization, record costly spending on fuel subsidies broadly kept inflationary pressures suppressed in 2022. Meanwhile, the new national unity government has signaled its commitment to the reform priorities outlined in the Twelfth Malaysia Plan (12MP) and the 2023 Budget to propel the economy toward net-zero greenhouse gas emissions and high-income status.