RM2.9 billion balance of payments in 3Q — BNM

KUALA LUMPUR: Malaysia’s overall balance of payments registered a surplus of RM2.9 billion in the third quarter (3Q) of 2017 from RM2.7 billion in 2Q while errors andomissions,whichincludeDthe revaluation changes on reserves, amountedtominusRM8.5billionor minus 1.9 per cent of total trade.

In a statement yesterday, Bank Negara Malaysia (BNM) said the financial account registered a net outflow of RM1.2 billion in the third quarter of 2017 (3Q17) compared to the second quarter 2017 which recorded net inflow of RM7.3 billion.

Thecentralbanksaidthiswason the back of higher inflows of longterm foreign direct investments (FDIs) and the sustained foreign inflows into domestic portfolio assets were offset by portfolio investments abroad by residents and outflows arising from banks’ liquidity and treasury management operations.

“The direct investment account turned around to register a net inflowofRM6.2billion,asFDIinflows more than offset outflows of direct investments abroad (DIA) during the quarter.

“FDIs rose to RM11.2 billion due mainly to higher injections of equity capital and reinvestment of earnings from parent companies, whileFDIinflowswerechannelled mainly into the real estate activitiessub-sector,followedbythemining and manufacturing sectors,” it said. — Bernama