Budget 2022 – Seizing The Right Moment

The recent data point suggests Malaysia will stand to benefit from the global recovery.

- Dr Mohd Afzanizam Abdul Rashid

The Budget 2022 came in at a time when the economic condition is gradually improving. The recent data point suggests Malaysia will stand to benefit from the global recovery. This was reflected in the 24.7 percent growth in total exports during August which surpassed the consensus estimates of 14.6 percent. Similarly, the Purchasing Managers Index (PMI) rose to 52.2 points during October after remaining in contraction since June this year. The budget is set to be the key catalyst for growth. The total allocation of RM332.1 billion is the highest figure in history of budget. Therefore, the impulse from the fiscal policy would be able to give the right boost to the aggregate demand, bolstering the GDP growth for 2022 which is aimed at between 5.5 – 6.5 percent from an estimated growth of 3 to 4 percent this year. While we are so fixated on staging a fast and swift recovery, the journey has always not been particularly straight forward. Series of choices and options have to be weighed in and as what the economics 101 have taught us, there will be an opportunity cost along the way. That is foregoing the benefits as a results of choosing the present course of action.