Bank Negara holds engagement sessions with stakeholders

KUALA LUMPUR: Bank Negara Malaysia has organised several engagement sessions with various stakeholders since March 20, following the release of its key reports.

They are the Annual Report 2023, Economic and Monetary Review 2023 and Financial Stability Review for the Second Half of 2023.

The central bank said among the issues discussed were growth, inflation, the ringgit and structural reforms.

The engagements sought to share Bank Negara’s assessment of Malaysia’s economy and financial sector as well as gain feedback from stakeholders.

“These engagements involved ministries, agencies, diplomatic corps, the banking, insurance, takaful and payment industries, economists, banking analysts, fund managers, businesses including small and medium enterprises and the media,” it said.

GRowth And infLAtion

Bank Negara said stakeholders discussed the outlook for growth and inflation this year, including possible actions by the Monetary Policy Committee (MPC).

It said the monetary policy would continue to be forward-looking.

“The positive growth trajectory and moderate inflation this year present a window of opportunity for the implementation of structural reforms.†

“A more targeted approach towards fuel subsidies is critical to help mitigate the impact on the cost of living,” it said.

the RinGGit

Bank Negara said the discussions focused on the bank’s assessment of the currency’s performance and the tools that could be used to provide support, including whether it would consider raising the Overnight Policy Rate (OPR).

Bank Negara reiterated that the OPR was not a tool to manage the exchange rate.

Instead, the central bank has and will continue to take concerted measures to manage short-term pressure on the ringgit.

Bank Negara also clarified that Malaysia’s international reserves were adequate to finance 5.4 months of imports of goods and services and was 1.0 time the total short-term external debt as of March 15.

STRUCTURAL REFORMS

Bank Negara said most key stakeholders were interested in understanding the mechanism, sequence and timing of the implementation of structural reforms.

“The government is clear about its reform agenda, including strategic reforms outlined in key policy documents such as the National Investment Aspirations, New Industry Master Plan 2023 and the Energy Transition Roadmap.

“Key stakeholders also agreed on the importance of implementing effective structural reforms and the subsequent impact on economic growth and the ringgit,” it added.