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4:42pm 29/10/2021
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Budget 2022 allocation of RM332.1bn the largest ever

KUALA LUMPUR, Oct 29 (Bernama) – The following are the highlights of the Economic Outlook, Fiscal Outlook and Federal Government Revenue estimates of 2022:

– Malaysia’s economy expected to strengthen between 5.5 per cent and 6.5 per cent in 2022, supported by significant improvement in global trade, stabilized commodity prices, containment of the pandemic, and gradual improvement in consumer and business sentiments;

– The services sector to expand 7.0 per cent in 2022 (2021: 2.6 per cent), manufacturing sector to grow 4.7 per cent (2021:8.1 per cent), and agriculture sector improve 3.8 per cent (2021: 0.8 per cent);

– Mining sector is seen contracting -0.3 per cent (2021: 1.5 per cent) and construction sector to rebound to 11.5 per cent (2021:-0.8 per cent);

– Domestic demand and private consumption to expand by 6.6 per cent and 7.3 per cent respectively in 2022;

– Inflation rate is seen at 2.1 per cent in 2022, following better economic prospects and stable crude oil prices;

– Budget 2022 allocation amounting to RM332.10 billion emerges as the largest ever for the country, surpassing Budget 2021 of RM322.54 billion;

– The Federal Government’s revenue to increase 5.9 per cent in 2022 to RM234 billion, in line with better economic prospects;

– Fiscal deficit to moderate to 6.0 per cent of GDP in 2022. In the 2021-2023 Medium-Term Fiscal Framework, the government projected the fiscal consolidation to average 4.5 per cent to GDP over the three-year period;

– Crude oil price expected to be at US$45-US$55 per barrel and crude oil production at 580,000 barrels per day; and

– A sum of RM23 billion will be allocated for the COVID-19 Fund in 2022, the final year for the fund.

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