KUALA LUMPUR: Opposition leader Datuk Seri Hamzah Zainuddin (PN-Larut) lacks understanding of economic growth, says Economy Minister Rafizi Ramli.
During Question Time in Parliament on Tuesday (Feb 14) morning, Hamzah said there appeared to be an error in Rafizi's statement.
Rafizi had said that although Malaysia registered gross domestic product (GDP) growth of 8.7% last year, the quarter-by-quarter growth recorded a steady decline.
He said the implementation of economic plans had to take into account growth in the four quarters of last year, as it would show if the economy was increasing or decreasing.
“I’m grateful because the entire country and the world gets to see how the Opposition leader fails to understand the concept of economic growth,” said Rafizi.
He explained that the 8.7% referred to annual growth of the size of the economy from 2021 to 2022.
“In 2021, there were lockdowns and the economy was shut down. That is why spending and the economy were far lower compared to 2022,” said Rafizi.
“This is the official figure announced by Bank Negara Malaysia and the Statistics Department.
“It is not me who needs to correct the data, but the Opposition leader must correct his understanding regarding economic growth,” said Rafizi.
In response, Hamzah explained that he was referring to an earlier answer by Rafizi, who appeared to be downplaying the 8.7% economic growth that was recorded thanks to initiatives by the previous Perikatan Nasional government.
“We should not deny the fact that the growth was planned by the previous government.
“Rafizi wants to state that as if there is no growth, let’s not show there was economic decline. That is inaccurate,” said Hamzah.
In response, Rafizi repeated his explanation and said the 8.7% growth was due to cash injections by the public sector and from government funds, which had adversely affected the government’s financial position.
“We should not be content with 8.7% growth. The past four quarters (last year) have declined and in 2023, we will face slower economic growth,” said Rafizi.
The first quarter of last year recorded 3.8% growth, 3.5% in Q2, 1.9% in Q3 and subsequently -2.4% in Q4.
On Tuesday, Fitch Solutions Country Risk and Industry Research said Malaysia’s GDP growth was forecast at 4% this year, compared to 8.7% last year.
On a separate matter, Rafizi said Prime Minister Datuk Seri Anwar Ibrahim will announce appointments to the Economic Action Council (EAC) soon.
