Economic Outlook 2023

As Malaysia seeks to further the economic recovery in a post-pandemic phase, the Malaysian economy is expected to moderate its Gross Domestic Product (“GDP”) between 4 to 5 percent (from 6.5 percent to 7 percent in 2022) through the services and manufacturing sectors.

Malaysia´s Budget 2023 has allocated a total expenditure of RM372.3 billion, compared to RM332 billion in Budget 2022. Out of the total expenditure allocation of RM372.3 billion, RM272.3 billion are calculated for Operating Expenditure, RM95 billion for Development Expenditure and RM5 billion for the COVID-19 Fund. The increase is due to the Government revenue collection being projected to be reduced from RM285.2 billion in year 2022 to RM272.6 billion in year 2023.

The headline inflation rate is expected to reach between 2.8 to 3.3 percent while the unemployment rate is expected to reach between 3.5 to 3.7 percent in 2023.

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