KUALA LUMPUR: In 2022, the Malaysian economy is expected to strengthen between 5.5% and 6.5%.

       In its Economic Report 2022, the Finance Ministry said this expansion will be supported by significant improvement in global trade, stabilised commodity prices, containment of pandemic and gradual improvement in consumer and business sentiments.

       The Malaysian economy expanded by 7.1% in the first half of 2021.

       Growth is expected to continue in the second half of the year, particularly in the fourth quarter, as more economic and social sectors operate at full capacity.

       The expected growth trajectory aligns with the successful vaccination programme under the National COVID-19 Immunisation Programme (PICK) and various stimulus and assistance packages to support the people and revitalise the economy.

       Overall economic growth is expected to expand between 3% and 4% in 2021.

       Continuation of the packages to combat the COVID-19 will have spillover effects and boost the economy in 2022.

       As economic and social activities are allowed to operate, the services sector is expected to expand by 7% in 2022.

       The finance and insurance subsector is projected to grow by 5.5%, mainly backed by the finance segment, following the continued economic recovery and resumption of investment activities.

       The manufacturing sector is expected to expand by 4.7% in 2022, attributed to the steady performance of both export and domestic oriented industries.

       The agriculture sector is forecast to expand by 3.9%, mainly supported by the commodity segment.

       The mining sector is forecast to decline marginally by 0.3%, due to lower crude oil and condensates production, following the scheduled shutdown of oil and gas plants and facilities for maintenance.

       The construction sector is projected to turn around by 11.5% in 2022 on account of better performance in all its subsectors.