KUALA LUMPUR: Bank Negara Malaysia (BNM) is closely monitoring global developments and will ensure sufficient liquidity in the domestic foreign exchange market to manage any spillover effects that might result from heightened volatility in world financial markets, said governor Datuk Seri Abdul Rasheed Ghaffour.
“As we are all aware, the global environment has been fraught with uncertainty this year. Geopolitical developments, changes in monetary policy by global central banks and, more recently, the just-concluded US elections, have led to heightened volatility in global financial markets. Despite this, the narrowing of interest rate differentials between Malaysia and advanced economies is positive for the ringgit,” he said in his opening remarks at the launch of the InvestMalaysia portal today.
Abdul Rasheed stressed that what remains constant is that the domestic landscape remains on firm footing, owing to the country’s solid economic prospects and fundamentals. “The sound economic fundamentals and the highly diversified economic structure have created a highly fertile environment for growth, which will also lend enduring support to the ringgit,” he said.
Abdul Rasheed stated that Malaysia has delivered and continues to deliver resilient growth performance. “Averaging 4.3% since 2011, our growth is higher relative to regional economies and rating peers; and this speaks for sound macroeconomic management.”
He said the combination of exciting reforms and solid fundamentals gives him great confidence that there is high promise in the domestic investment landscape.
“Undeniably, our status as a small, open economy leaves us exposed to risks emanating from global factors, especially in uncertain times like today. It is to our great advantage that we are facing these challenges from a position of strength,” he added.
Abdul Rasheed said BNM will play its part and do what is needed to ensure both monetary and financial stability and that the financial market environment is conducive for sustainable investment and economic activities to take place.
“In addition, as detailed in the Financial Sector Blueprint 2022-2026, initiatives are being undertaken for the financial sector to support the transformation of the wider economy.”
Meanwhile, the government launched the InvestMalaysia portal (www.investmalaysia.gov.my) as a one-stop gateway for investors to obtain information on Malaysia.
Finance Minister II Datuk Seri Amir Hamzah Azizan. who officiated at the event at Sasana Kijang, said the InvestMalaysia portal aims to address the gap of finding that final bit of information about investing in Malaysia.
“What we have built is a platform where you enter with questions and exit with answers, or at the very least being pointed to the right direction to find the right information. Together, the Investor Relations Office and the InvestMalaysia portal will act as navigators for portfolio investors looking to participate in our market.”
In a statement, the central bank said Malaysia has always been open and welcomes quality investments.
It said the launch of the InvestMalaysia portal is anticipated to enhance investor relations practices and stimulate inflows of high-quality portfolio investments into the country. “These inflows would contribute towards deepening our financial markets and lift economic growth, and help us achieve the Madani Economic aspiration to advance Malaysia towards high-income status.”
