“The do­mes­tic bank­ing as­sets of RM2.4 tril­lion and the cap­i­tal mar­ket’s RM2.38 tril­lion will pro­vide sup­port to the econ­omy.”

New Straits Times - - Business -


Sec­ond Fi­nance Min­is­ter

KUALA LUMPUR: The strength of the fi­nan­cial sys­tem and cap­i­tal mar­ket will help Malaysia cope with any for­eign fund out­flows, said Sec­ond Fi­nance Min­is­ter Datuk Seri Jo­hari Ab­dul Ghani.

The do­mes­tic bank­ing as­sets, at RM2.4 tril­lion, to­gether with the cap­i­tal mar­ket’s RM2.38 tril­lion, in­clud­ing RM1.3 tril­lion of the eq­uity mar­ket, would pro­vide sup­port to the econ­omy, he said.

“Our bank­ing as­sets and cap­i­tal mar­ket will be able to sus­tain money flow­ing out of the coun­try. This is the strength of our fun­da­men­tals,” said Jo­hari af­ter pre­sent­ing a lun­cheon talk on “Malaysia’s Econ­omy: Chal­lenges and the Way For­ward”, here, yes­ter­day.

Malaysia’s eco­nomic re­silience against cap­i­tal flight was tested when some RM32 bil­lion worth of for­eign funds were taken out in the first quar­ter, he said.

Since then, the lo­cal eq­uity mar­ket has con­tin­ued to en­joy steady for­eign cap­i­tal in­flows in the sec­ond quar­ter on the back of im­proved cor­po­rate earn­ings as ex­ports and eco­nomic growth re­bounded strongly, said Ke­nanga In­vest­ment Bank Bhd.

“The do­mes­tic eq­ui­ties saw a sec­ond con­sec­u­tive quar­ter of net for­eign fund in­flows of RM4.4 bil­lion,” it said in a re­port yes­ter­day.

Jo­hari re­it­er­ated that be­ing a highly open econ­omy, Malaysia was in a stronger po­si­tion to per­se­vere through chal­lenges.

They in­clude the slow­down in the Chi­nese econ­omy, lin­ger­ing geopo­lit­i­cal un­cer­tain­ties such as the cri­sis in the Mid­dle East as well as un­cer­tain­ties in the United States’s in­ter­est rate pol­icy nor­mal­i­sa­tion.

“Malaysia has over sev­eral decades demon­strated time and time again the abil­ity to emerge stronger from com­mod­ity price shocks, fi­nan­cial crises and spillovers from dis­rup­tions in other parts of the world.”

He said Malaysia’s next growth phase was about en­hanc­ing pro­duc­tiv­ity and in­clu­sive­ness.

Hence, the gov­ern­ment has un­der­taken strate­gic ini­tia­tives such as em­bark­ing on in­fra­struc­ture projects and pro­mot­ing dig­i­tal econ­omy.

He said on­go­ing in­fra­struc­ture projects such as the Mass Rapid Tran­sit, Light Rail Tran­sit , Kuala Lumpur-Sin­ga­pore high-speed rail and Pan-Bor­neo High­way would not only stim­u­late eco­nomic ac­tiv­i­ties, but pro­mote a greater sense of in­clu­sive­ness.

As for the In­ter­net of Things, or what has now been coined as the “Fourth In­dus­trial Rev­o­lu­tion”, it was now more im­per­a­tive for the gov­ern­ment to catch up or risk fall­ing be­hind this evo­lu­tion sweep­ing through global mar­kets, he said.


Sec­ond Fi­nance Min­is­ter Datuk Seri Jo­hari Ab­dul Ghani (fourth from right) with (from left) As­tro Awani ex­ec­u­tive editor Ka­marul Bahrin Haron, Ber­nama chair­man Datuk Seri Az­man Ujang, New Straits Times Press (M) Bhd ex­ec­u­tive news editor Mu­zli Mo­hamad Zin, Nanyang Siang Pau joint-editor Foo Tick Fat, Malaysian Press In­sti­tute (MPI) chief ex­ec­u­tive of­fi­cer Datuk Chamil Wariya, MPI sec­re­tary and Har­ian Metro group editor Datuk Mustapa Omar, Kumpu­lan Si­nar ex­ec­u­tive ed­i­to­rial ad­viser Datuk Ab­dul Jalil Ali and Utu­san Me­layu (Malaysia) Bhd as­sis­tant editor-in-chief Datuk Mohd Zaini Has­san.

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