Malaysia's economy growing strongly, room to raise rates: finance minister

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The economy gained speed in the first quarter of this year, as the country dropped most virus restrictions.

DAVOS : Malaysia’s economy is growing strongly thanks to the rise in commodity prices and central bankers"still have room” to tighten monetary policy to tackle accelerating inflation if needed, according to Finance Minister Zafrul Aziz .

"We think we are on the right track,” Zafrul told Bloomberg Television’s Haslinda Amin at the World Economic Forum in Davos, Switzerland. Malaysia’s high vaccination rate, coupled with the global pivot toward living with the virus, nudged the government to reopen its international borders in April. That’s buoyed optimism the country’s recovery has reached firmer footing, with Bank Negara Malaysia estimating the economy to quicken anywhere between 5.3% and 6.3% in 2022 from a year ago.

The government also scrapped approved permit requirements for import of food items including wheat, poultry and milk, to augment domestic supplies.

 

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