Finance Minister: Malaysia continues to focus on strengthening economic fundamentals and structural reforms

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz at The Cooler Earth Sustainability Summit 2022 on September 20, 2022. — Bernama pic

Saturday, October 1, 2022 21:20 MYT

KUALA LUMPUR, Oct. 1 — The government will continue to focus on strengthening economic fundamentals and structural reforms to ensure the country’s economy remains stable after the ringgit weakens against the dollar. increase.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said there was no quick and easy way to resolve the ringgit’s weakness relative to the rising US dollar, as stated by the World Bank.

As a small and open economy, Malaysia cannot be immune to the challenges facing the whole world, he said in a statement released today, particularly related to the position and current situation of the ringgit. and in response to various reports, concerns and questions submitted to his ministry.

Among other things, the government will ensure that the current account remains in constant surplus, driven by ever-increasing exports, and that the country does not experience twin deficits, he said.

“The current account balance remains positive this year, totaling RM3bn in Q1 and RM4.4bn in Q2,” he said.

Furthermore, U Tengku Zafrul said the government will continue fiscal reform measures, including enactment of the Fiscal Responsibility Law, towards the end of 2022.

“The government will also diversify the country’s economic structure and activities, with particular emphasis on sustainability and environmental, social and governance (ESG) aspects, as well as sectors focused on the digital economy,” he said. He added that these create employment opportunities. You can offer people higher salaries.

Equally important, he said, is the continued functioning of the country’s financial system and stock market.

To date, there has been no disruption to financial intermediation and lending activity continues to run smoothly, he said.

“Business activities continue to have access to funding from banking institutions and capital markets. Meanwhile, the stock market continues to show net inflows of RM6.7 billion from foreign investors and RM2.3 billion from private investors,” it said. he added.

Tengku Zafrul believes that Bank Negara’s flexible and dynamic ringgit exchange policy or fundamentals, sufficient and strong foreign exchange reserves, multi-sectoral equity markets, the country’s strong banking sector and solid funding will enable Malaysia’s capital It said it will continue to be more resilient to spills and external shocks. He is an institutional investor.

“Going forward, the government is committed to ensuring the protection of the well-being of all Malaysians, whether they are households, individuals or businesses. I’m starting,” he said.

The country is not facing a financial or economic crisis as its Gross Domestic Product (GDP) contracted like it did in 1998, 2009 and 2020, stressed U Tengku Zafrul, adding that the government will reduce GDP growth this year. will outperform that, he added. His original forecast between 5.3% and 6.3%.

He also said the government’s aggressive measures announced, including the allocation of some RM80 billion in subsidies, including price controls on various essential commodities, will continue to protect the public from the impact of rising prices caused by external factors. rice field. government control.

U Tengku Zafrul said the government will also continue people-friendly projects with a high multiplier effect, such as housing improvements. Flood Mitigation; Water, Electricity, Internet, 5G Infrastructure. Public transportation options such as Mass Rapid Transit 3 (MRT3) and the Pan-Borneo Highway are also available. — Bernama

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