Budget 2021 : Economy and industries expected to see recovery

Malaysia’s economy is expected to expand between 6.5 percent to 7.5 percent along with expected improvement in global trade.

According to the Ministry Of Finance (MoF), various sectors are also expected to observe recovery. The construction sector is anticipated to recover by 13.9 percent in 2021 due to acceleration of major infrastructure project as well as affordable housing projects.

Additionally the agriculture sector will see a turnaround by 4.7 percent next year. This will be supported by high production of palm oil and rubber.

The mining sector on the other hand is expected to see a 4.1 percent rebound supported by recovery of global demand for crude oil and liquefied gas .

The Ministry further believes that the service sector is projected to bounce back by 7 percent after contracting by 3.7 percent. However, domestic demand is expected to contract by 3 percent this year with both private and public sector spending to decline by 3.2 percent and 2.1 percent respectively.

Furthermore, the Ministry has forecasted for the manufacturing sector to expand by 7 percent next year. This will be supported by improvement in both the export and domestic fueled industries.

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