Report: Focusing efforts on developing a better financial sector

KUALA LUMPUR: As Malaysia's economic growth is projected to remain steady at between five and six% next year, underpinned by resilient domestic demand and higher exports, the government will continue to focus its efforts on the development of a progressive, sustainable and inclusive financial sector.
The Ministry of Finance said this was to support the country's transformation towards a high value-added and high-income economy by 2020.
"As guided by the Financial Sector Blueprint, this will include further increasing the capacity of financial institutions and financial markets to provide value-enhancing products and services," the ministry said in its 2014-2015 Economic Report released today.
The report is issued in conjunction with the tabling of the 2015 Budget in Parliament today by Prime Minister Datuk Seri Najib Abdul Razak, who is also Finance Minister.
The blueprint also calls for the development of a comprehensive regulatory framework to facilitate greater diversification of Islamic banking businesses and products and operationalising the Financial Services Talent Council to ensure the financial sector has a sustainable pool of high quality talent to meet future needs.
In addition, it aims to further strengthen Malaysia's regional and international financial linkages through, among others, operationalising the Asean Banking Integration Framework.
On global developments, the ministry said emerging and developing economies were projected to continue to drive global growth next year as advanced economies recovered at an uneven pace.
It said while the spillover and contagion effects from the United States' continuous monetary policy normalisation might impact emerging and developing economies, Malaysia was well prepared to cushion the effects.
"A more resilient domestic financial system, following the decade of reforms, will be able to moderate the impact, while continuing to support the expanding economic activities," it added. – Bernama