“The new forecast is expected to be announced in mid-August, together with a widened deficit figure,” he told a news conference here today.

Previously, the government had projected the 2021 GDP growth to be between 6% and 7.5%.

“We are now studying the cost of the current movement control order under Phases 1, 2, 3 and 4 of the national recovery plan.

“Phase 4 may have a mitigating impact on the GDP with the introduction of the national people’s well-being and economic recovery package (Pemulih),” he said.

Tengku Zafrul said the government was positive that the implementation of Pemulih, which was unveiled by Prime Minister Muhyiddin Yassin yesterday, could lift up the GDP by 2%.

On the direct fiscal injection of RM10 billion under Pemulih, he said the funds came from an increase in government revenue, partly from higher dividends from statutory bodies and government-linked companies, optimisation of expenditure, and an increase in borrowings.