Against the background of the gradual easing of the impact of the pandemic，Malaysian economy demonstrated moderate and uneven recovery in 2021. In the first six months，the economy has grown by 7.1%，with a strong start at the beginning of the year and a significant rebound in the second quarter. However，the economy contracted by 4.5% due to tightened pandemic control rules in the third quarter. It recovered again in the fourth quarter，reversing the downward trend and achieved an annual overall growth of 3.1%. Thanks to the combined effects of bailout policies and the relaxation of the control measures，household income and consumption rebounded and led to increase in market demand. All industries achieved positive growth to varying degrees，in particular，the manufacturing industry. Stronger external demand also drove significant growth in imports and exports，with the latter rising 26% to RM1.2 trillion，a record high. Specifically，export of electronics，refined petroleum，palm oil and chemical products received a boost. Private consumption and investment regained strength while corporate investment remained sluggish. As a means to ensure public wellbeing，government continued to invest in public goods and service provision. Monetary policy continued to be accommodative and inflation remained moderate. Current account stayed in surplus，and external debt risks were mild. With the improvement of vaccination coverage，the pandemic seemed to have been brought under control and the government’s restrictions on the movement of people have gradually lifted. As a result，labor market experienced gradually recovery. Domestic consumption and external demand are expected to continue to improve in 2022. While uncertainties and downside risks associated with the pandemic and international affairs remain，the outlook of Malaysian economy in 2022 is generally optimistic.