The minister of finance Lim Guan Eng declared that the economic situation will be improved within this year with a low inflation rate of two percent.
The inflation rate this year will vary according to global uncertainties but domestically, the country’s economy is expected to bounce back.
Lim Guan Eng stated the exports of the country exceeded RM1 trillion last year, this means that the domestic economy of the state is stable and will be getting better.
Lim Guan Eng also said if the global uncertainties were to go up this would cause a rise in the inflation rate by 2 percent, but if the global uncertainties can be resolved this, would lead to a reduction in the inflation rate, he stated in a press conference after announcing his joint Chinese New Year open house event with the Penang Chinese Chamber of Commerce.
Commenting on this matter, he said the stock market will be rising that will happen if Trump settles with China but if the trade war goes up, it will be a different story.
The minister of finance added the inflation rate was 1 percent last year, the lowest in nine years. He compared the low 1 percent inflation rate to the 3.7 percent inflation rate in 2017.
Lim Guan Eng admitted that there was a rise in prices under SST but it couldn’t be compared with the GST.