The former finance minister warned Prime Minister Ismail Sabri Yaakob that such optimistic projections had not only failed to pull the country out of a recession but led to the country missing many economic targets.

Earlier today, finance minister Tengku Zafrul Aziz said the government had maintained the country’s economic growth forecast for 2022 in the range of 5.5-6.5%.

He said the figure was also in line with the International Monetary Fund (IMF) and World Bank’s projections of 5.7% and 5.8% respectively.

“The continued momentum of the country’s economic recovery is clearly visible with a GDP growth of 3.1% for 2021,” Tengku Zafrul said, adding that the country had attracted RM50 billion in foreign direct investment (FDI).

However, Lim said the GDP growth rate of 3.1% was “disappointing” when compared to the 7.5% rate forecast by the previous Perikatan Nasional-led (PN) government.

“This was especially so when taking into account the eight economic stimulus packages of RM530 billion on top of the 2021 Budget,” he added.

Lim, who is DAP secretary-general, also pointed out that by not reversing the 5.6% GDP contraction in 2020, Malaysia’s economy was actually smaller in 2021 than in 2019.

“The economic performance in 2022 and handling of the new Omicron variant will be a litmus test for the prime minister as to whether he is committed to addressing the economic woes.

“Or would he prefer indulging in unrealistic projections to generate a ‘feel-good factor’ ahead of the Johor state elections,” he said in a statement.

Lim went on to predict that the budget deficit for 2021 was likely to increase to over 7% instead of being reduced to 5.4%.

“To avoid 2022 becoming another lost year of missed economic targets, the prime minister must undertake institutional reforms and resolve the shortage of workers faced by many businesses.

“He must also keep inflation in check and monitor the prices of food and raw materials,” Lim added.