World bank economist: Malaysia’s economy doing well
The Malaysian economy is doing reasonably well in the face of global challenges, according to World Bank Group lead economist for Malaysia, Apurva Sanghi. Analysing Malaysia’s economy from three lenses – macro, meso, and micro – he said the World Bank is forecasting Malaysia’s economy to grow 5.5 percent this year. This, Apurva said, is higher than the global growth of 2.9 percent and regional growth of 4.4 percent “Malaysia is doing reasonably well, even with the impact of the pandemic compounded by the war in Ukraine, Chinese lockdowns, rising interest rates and fears of stagflation – low growth, high inflation – as we are surrounded by uncertainty,” he said. Apurva was speaking in “The Nation” programme on Bernama TV yesterday. He also noted that consumer spending is gradually recovering, as is job creation. On the meso lens, he said according to a World Bank survey, businesses in Malaysia are gradually increasing sales to pre-Covid-19 levels, thanks to the government’s assistance during the pandemic.
“The optimism stems from the pent-up demand, opening up of the economy and higher commodity prices,” Apurva explained.
He went on to say that high commodity prices benefit Malaysia because the country exports commodities such as palm oil, liquefied natural gas and petroleum, which account for 80 percent of all commodities.
“Second, if you look at the geopolitical landscape, there’s a bit of trade divergence going on.
“(With) great tensions between the United States (US) and China, and due to security-related issues, the US is sort of diverging in trade, and some of it is coming to East Asia, as well as Malaysia.
“This is especially beneficial to Malaysia’s semiconductor industry,” he added.
Singapore to releases $1.5b support package
Singapore is committing S$1.5 billion on inflation relief for businesses and households, as global prices climb faster than earlier projected and are likely to stay high. The support package, announced by Deputy Prime Minister Lawrence Wong on Tuesday, will be funded from Singapore
’s better-than-expected fiscal position in FY2021, the Ministry of Finance (MOF) has said. There will be no drawdown on the nation’s past reserves. “The situation is highly fluid and the government will continue to monitor it closely and adjust our measures and programmes as necessary,” said Wong, who is also Finance Minister. That’s as he warned at a press briefing that “we are dealing with multiple crises at the same time” – namely, the Covid-19 pandemic, a global economic slowdown, and inflation. With energy prices possibly elevated into the second half of the year, certain small businesses will now get government funding of up to 70 percent for energy-efficient equipment. The new Energy Efficient Grant is aimed at the food services, food manufacturing, and retail sectors.
China’s XI vows ‘more forceful’ tools to achieve this year’s economic targets
Chinese President Xi Jinping made a rare statement Wednesday about his country’s aims to achieve its economic goals for the year. Investment analysts have cut their forecasts for China’s GDP growth to well below the official target after stringent Covid controls restricted business activity in the last few months. Government stimulus has been relatively muted so far. “We will step up macroeconomic policy adjustment, and adopt more forceful measures to deliver the economic and social development goals for the whole year and minimize the impact of COVID-19,” Xi said Wednesday, according to an English-language state media readout. He did not share details on what kind of measures would be used to support growth. Rather than “more forceful,” Chinese text of the speech published by state media described forthcoming measures as “more effective,” according to a CNBC translation.
| Economy Of China In Statistics | ||||
|---|---|---|---|---|
| Details | Last | Previous | Value | Date |
| GDP Growth Rate | 1.3 | 1.5 | percent | 22-Mar |
| GDP Annual Growth Rate | 4.8 | 4 | percent | 22-Mar |
| Unemployment Rate | 5.9 | 6.1 | percent | 22-May |
| Inflation Rate | 2.1 | 2.1 | percent | 22-May |
| Inflation Rate Mom | -0.2 | 0.4 | percent | 22-May |
| Interest Rate | 3.7 | 3.7 | percent | 22-Jun |
| Cash Reserve Ratio | 11.25 | 11.25 | percent | 22-Jun |
| Balance of Trade | 78.76 | 51.12 | USD Billion | 22-May |
| Current Account | 895 | 1184 | USD HML | 22-Mar |
| Current Account to GDP | 1.8 | 1.9 | percent of GDP | 21-Dec |
| Government Debt to GDP | 66.8 | 57.1 | percent of GDP | 20-Dec |
| Government Budget | -3.7 | -2.8 | percent of GDP | 20-Dec |
Dead rivers: the cost of Bangladesh’s garment-driven economic boom
Bangladeshi ferryman Kalu Molla began working on the Buriganga river before the patchwork of slums on its banks gave way to garment factories — and before its waters turned pitch black.
The 52-year-old has constant cough, allergies and skin rashes, and doctors have told him the vile-smelling sludge that has also wiped out marine life in one of Dhaka’s main waterways is to blame.
“Doctors told me to leave this job and leave the river. But how is that possible?” Molla told AFP near his home on the industrial outskirts of the capital Dhaka. “Ferrying people is my bread and butter.”
In the half-century since a devastating independence war left its people facing starvation, Bangladesh has emerged as an often unheralded economic success story.
The South Asian country of 169 million has overtaken its neighbour India in per capita income and will soon graduate from the United Nations’ list of the world’s least developed countries.
Economy to grow 7.5pc in fy23: India
India’s real gross domestic product (GDP) is set to grow 7.5 percent in the current fiscal year (FY23) and this will make it the fastest-growing major economy in the world, Prime Minister Narendra Modi said on Thursday, while virtually addressing the BRICS Business Forum. This is the first time a real GDP growth projection has been given for the year by the government in the ongoing current financial year. The Union Budget gives out the nominal GDP figure, and the government usually goes by the Reserve Bank of India’s real GDP projection, which stands at 7.2 percent for FY23. The PM’s forecast is in line with the World Bank’s forecast but lower than the International Monetary Fund’s much more bullish projection of 8.2 percent. “We are expecting growth of 7.5 percent this year, which will make us the fastest-growing major economy,” the prime minister told the BRICS Business Forum. “The role of the BRICS nations is more important than ever before in the post-Covid world,” he said. BRICS stands for the international grouping of emerging economies Brazil, Russia, India, China, and South Africa. The prime minister also said his government has brought about transformative changes to enable technology-led growth, in sectors such as space, new economy, green energy, and data. Modi said that even during the Covid pandemic, steps were taken by the Centre to improve the ease of doing business by reducing the compliance burden on companies. He invited businesses from BRICS nations to invest in India’s $1.5-trillion National Infrastructure Pipeline.
Indonesia’s economic growth may decelerate to 4.6pc
The World Bank saw the possibility that Indonesia’s economic growth rate could slow down to 4.6 percent this year, affected by unstable global conditions. For 2023, the World Bank predicts Indonesia’s growth could be stuck at a level of 4.7 percent. “The global economic environment could create a downward pressure in that projection,” the World Bank’s chief economist for Indonesia and Timor-Leste, Habib Rab, said Wednesday, June 22. Despite the grim forecast, the international financial institution also gave its projection for the best scenario. The World Bank estimates that the Indonesian economy can also grow 5.1 percent in 2022 and 5.3 percent in 2023. Habib Rab said that a widespread decline in global economic growth could lead to plunging demand for commodity exports, triggering production cuts and higher prices. This condition forces fiscal reallocation from spending that supports economic growth to untargeted subsidies. “It could also mean higher borrowing costs and lower investment,” he said. Habib estimated Indonesia’s inflation rate will also increase, reaching up to 3.6 percent in 2022. He said that rising world oil prices will affect consumer price inflation in Indonesia. However, the effect can be controlled by providing energy subsidies or by an appreciation of the rupiah exchange rate.
Sri Lanka’s economy has ‘completely collapsed
Sri Lanka’s economy has “completely collapsed,” Prime Minister Ranil Wickremesinghe said Wednesday, as the crisis-hit nation faces an increasingly dire situation that has left millions struggling with fuel, electricity and food shortages.
“Our economy has faced a complete collapse,” Wickremesinghe told Sri Lanka’s Parliament, adding the government was seeking help from its global partners and the International Monetary Fund (IMF) to stabilize the economy.
But Wickremesinghe warned the island nation of 22 million was “facing a far more serious situation” beyond the shortages.
Sri Lanka is in the midst of its worst financial crisis in seven decades, after its foreign exchange reserves plummeted to record lows, with dollars running out to pay for essential imports including food, medicine and fuel.
In recent weeks, the government has taken drastic measures to cope with the crisis, including implementing a four-day work week for public sector workers to allow them time to grow their own crops. However, the measures are doing little to ease the struggles faced by many in the country.
In several major cities, including the commercial capital, Colombo, hundreds continue to queue for hours to buy fuel, sometimes clashing with police and the military as they wait.
Trains have reduced in frequency, forcing travelers to squeeze into compartments and even sit precariously on top of them as they commute to work.
Patients are unable to travel to hospitals due to the fuel shortage and food prices are soaring. Rice, a staple in the South Asian nation, has disappeared from shelves in many shops and supermarkets.