KUALA LUMPUR: The government’s fiscal policy will continue to provide support to ensure sustainable economic recovery even as more sectors open up under the National Recovery Plan (NRP).

       In the latest Laksana report released yesterday, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the implementation of ongoing economic stimulus measures by the Finance Ministry (MoF) will support Malaysia’s economic growth, which is expected to remain strong at 6.0% based on International Monetary Fund (IMF) projections, and 5.8% according to the World Bank.

       The MoF also expects more promising prospects for economic recovery in the near future, supported by the systematic reopening of various economic sectors including social activities such as dining in restaurants and tourism.

       “In addition, recovery in the labour market also showed a decline in the unemployment rate to 4.8% in July 2021 from a high of 5.3% in May 2020, and an increase in manufacturing sector sales by 0.6% to RM119.8bil in July 2021 from a 33% contraction in April 2020.”

       Foreign trade also increased with export activity growing by 18.4% to RM95.6bil in August 2021 while import activity increased by 12.5% to RM74.2bil.

       The report highlighted that the wage subsidy assistance (PSU) under the Kita PRIHATIN Package was extended for an additional three months to existing employers who receive PSU while the PSU assistance for six months was provided to all applications between Oct 1, 2020 and Dec 31, 2020.

       “As of Sept 24, 2021, a total of RM1.386bil has been disbursed to 80,491 employers to continue, operate and retain employment for 708,109 employees. Additionally, as of Sept 24, the total number of applications (by SMEs for soft loans by Bank Negara) approved by local banks and accepted by SMEs is RM12.46bil, which will benefit 26,197 SMEs.”