BNM governor Nor Shamsiah Mohd Yunus said Malaysia was well-positioned to gain from the bounceback in global growth and trade, as witnessed in 2021.

She told Bernama that strong external demand for electrical and electronic (E&E) products and commodities, particularly from Malaysia’s key trading partners, including China, the US and the regional economies, would contribute to further expansion in export-oriented sectors.

“More importantly, the broad-based improvement in overall income, employment conditions and consumer sentiments would provide a lift to household spending,” she said, noting that the central bank would be announcing its latest assessment on the economy in March.

Nor Shamsiah said the continuation of major investment projects in key economic sectors, such as in E&E manufacturing and digital investments, would lead to growth further.

Nevertheless, the risk to the outlook for 2022 remained, arising from a weaker-than-expected global growth, worsening supply chain disruptions and the emergence of severe and vaccine-resistant Covid-19 variants of concern.

She also said headline inflation was likely to remain moderate in 2022 as the base effect from fuel inflation dissipated, while core inflation was expected to be modest with the upward pressure contained by the continued slack in the economy and labour market.

“Overall, the inflation outlook continues to be subject to global commodity price developments and risks from prolonged supply-related disruptions,” she said.