{
  "title": "IMF Staff Completes 2022 Article IV Mission with Malaysia",
  "publication": "IMF News, February 13, 2022",
  "sourceUrl": "https://www.imf.org/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia",
  "canonical": "https://www.imf.org/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia",
  "overlayPath": "/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia/index.md",
  "summary": "IMF team led by Mr. Lamin Leigh conducted virtual discussions for the 2022 Article IV Consultation with Malaysia during January 24-February 9, 2022.",
  "publishDate": "2022-02-13",
  "sections": [
    {
      "heading": "Mission overview and timing",
      "content": "- IMF team led by Mr. Lamin Leigh conducted virtual discussions for the 2022 Article IV Consultation with Malaysia during January 24-February 9, 2022.\n- End-of-Mission press release dated February 13, 2022; IMF team expected to present Staff Report to the Executive Board in April 2022.\n- Statement clarifies views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board."
    },
    {
      "heading": "Macroeconomic performance and outlook",
      "content": "- Real GDP growth in 2021: 3.1 percent.\n- Growth projection for 2022: about 5 ¾ percent.\n- Inflation projection: about 2½ percent.\n- Recovery characterization:\n  - Set for a gradual recovery.\n  - Uneven recovery with sizeable economic slack.\n  - Output likely to remain well below potential.\n  - Downside risks include possible re-intensification of the pandemic with vaccine-resistant variants.\n- Sectoral dynamics:\n  - Export-oriented manufacturing sector underpinned growth.\n  - Agriculture and contact-intensive sectors remained hard hit.\n  - Pent-up domestic demand and continued strong external demand expected to drive 2022 growth."
    },
    {
      "heading": "Fiscal policy findings and recommendations",
      "content": "- Near-term:\n  - Recommend additional near-term targeted fiscal support towards vulnerable and hard-hit segments of the economy and productive investments.\n  - Near-term support should be nimble and increasingly targeted to buttress recovery, minimize economic scarring, protect vulnerable populations, and scale up productive investments in line with authorities’ spending priorities.\n- Medium-term:\n  - Authorities’ commitment to medium-term fiscal consolidation is welcome.\n  - Recommend a credible, specific, growth-friendly, and clearly communicated consolidation strategy once recovery is entrenched to rebuild fiscal buffers, preserve fiscal sustainability, and reduce fiscal risks.\n  - Consolidation should be underpinned by budgetary reforms and supported by robust fiscal governance practices."
    },
    {
      "heading": "Monetary and financial sector recommendations",
      "content": "- Monetary policy:\n  - Current accommodative monetary policy stance is appropriate.\n  - Monetary policy should remain data dependent.\n  - Exchange rate flexibility should be the first line of defense against volatile capital flows.\n- Financial sector support:\n  - Financial sector support measures should continue to be more targeted and unwound as the recovery becomes entrenched.\n  - Close attention should be provided to financial stability risks as support measures are progressively unwound."
    },
    {
      "heading": "Structural reforms and policy priorities",
      "content": "- Recommend coordinated and targeted structural reform policies to:\n  - Address long-standing structural challenges.\n  - Limit economic scarring.\n  - Boost productivity.\n  - Address inequality.\n  - Enhance economic resilience and meet aspiration of a “Prosperous, Inclusive and Sustainable Malaysia.”\n- IMF team supports the thrust of the Twelfth Malaysia Plan, including:\n  - Boosting the digital economy.\n  - Elevating the level of education.\n  - Enhancing broad-based productivity drivers.\n  - Accelerating governance and anti-corruption reforms.\n  - Reinvigorating the tourism sector.\n  - Adopting comprehensive climate change policies."
    },
    {
      "heading": "Communication and next steps",
      "content": "- IMF team thanked officials of the Government of Malaysia and Bank Negara Malaysia, other public institutions, private sector, and civil society for discussions.\n- IMF team will prepare a Staff Report and expects to present it to the Executive Board of the IMF in April 2022.\n\nIMF Staff Completes 2022 Article IV Mission with Malaysia — Press Release No. 22/34 (February 13, 2022).\n\n---\n\n\n References\n\n- Malaysia and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia/index.md)",
    "[Structured JSON version](/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia/index.json)",
    "[Bundle manifest](/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia/bundle-manifest.json)",
    "Published: February 13, 2022",
    "IMF team led by Mr. Lamin Leigh conducted virtual discussions for the 2022 Article IV Consultation with Malaysia during January 24-February 9, 2022.",
    "End-of-Mission press release dated February 13, 2022; IMF team expected to present Staff Report to the Executive Board in April 2022.",
    "Statement clarifies views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.",
    "Real GDP growth in 2021: 3.1 percent.",
    "Growth projection for 2022: about 5 ¾ percent.",
    "Inflation projection: about 2½ percent.",
    "Recovery characterization:",
    "Sectoral dynamics:",
    "Near-term:",
    "Medium-term:",
    "Monetary policy:",
    "Financial sector support:",
    "Recommend coordinated and targeted structural reform policies to:",
    "IMF team supports the thrust of the Twelfth Malaysia Plan, including:",
    "IMF team thanked officials of the Government of Malaysia and Bank Negara Malaysia, other public institutions, private sector, and civil society for discussions.",
    "IMF team will prepare a Staff Report and expects to present it to the Executive Board of the IMF in April 2022.",
    "[Malaysia and the IMF](http://www.imf.org/external/country/MYS/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia/index.md",
    "json": "/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia/index.json",
    "bundleManifest": "/en/news/articles/2022/02/11/pr2234-imf-staff-completes-2022-article-iv-mission-with-malaysia/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T00:58:24.092Z"
}