International Webinar 2022 - Recession Proof business Strategies for 2023 – Part 7

Bank Negara Malaysia (BNM) Governor Tan Sri Nor Shamsiah Mohd Yunus has warned that Malaysia will experience a challenging economic climate in 2023, as deteriorating supply chains, geopolitoy uncertainties, and market turmoil could hurt growth (BNM, 2022). Both internal and external risks remain, the country is not heading for a recession in 2023.


Malaysia's central bank slashed its key interest rate to the lowest level in 10 years on 03 March 2022 to mitigate the effects of the coronavirus on exports and tourism. The central bank's monetary policy committee said the coronavirus outbreak would weigh on Malaysia's economy, especially in the first quarter, and add further pressure to full-year economic growth as the Southeast Asian nation continues to grapple with weakness in commodity-related sectors.


This is Bank Negara Malaysia's second rate cut this year and comes a week after the political turmoil that saw Muhyiddin Yassin appointed prime minister following the resignation of Mahathir Mohamad. The central bank cut interest rates by a surprise 25 basis points in January, as a pre-emptive move to shore up prospects for economic growth. This step follows the interest rate cut by the Australian central bank which on 03 March 2022 also cut its benchmark interest rate to a record low. Last month, Bank Negara Malaysia reported fourth-quarter economic growth of 3.6%, the country's weakest quarterly pace since the global financial crisis. Meanwhile, throughout 2019 Malaysia's economy grew 4.3%, below the lower limit estimated by the central bank.


Malaysia will not be spared from the forecast global economic slowdown in 2023, as the world's three major economic drivers – Europe, China and the US – are expected to grow at a slower rate next year than this year. Therefore, the state must be prepared to do what needs to be done to mitigate the anticipated impact of the world economic slowdown. If this is ignored, it is not impossible that it will cause serious problems in the future.


Bank Negara Malaysia governor Nor Shamsiah Mohd Yunus said at the time that there was "a lot of room" to adjust interest rates, as analysts see continued pressure on global supply chains and tourism from the coronavirus outbreak. This is a warning to all parties to be more anticipatory in dealing with this situation.



The above material was presented by a presenter from Malaysia in an international webinar held by STEKOM University in collaboration with Universities from Malaysia, PRC and various other parties. The title of the presentation brought by the presenter from Malaysia was "Recession-proof business strategies 2023: Malaysia's Economy Perspective." The presenter's name is Hafizah Abdul Rahim who is a senior lecturer and research fellow at the center of excellence for social innovation and sustainability, faculty of business and communication at Universiti Malaysia Perlis.


This international webinar activity is part of the implementation of STEKOM University's commitment to increase various international activities. This was done in order to realize the vision to become an international-class university. Various international activities carried out by STEKOM University continue from year to year. There are international activities that are sustainable and there are also some international activities that are not sustainable. All types of international activities are accommodated and regulated by the International department of STEKOM University.