‘Reforms needed to ensure resilience’

KUALA LUMPUR: There is a need for structural reforms in the economy to ensure it remains resilient and better able to absorb shocks from global and domestic disruptions.

Bank Negara Malaysia governor Datuk Nor Shamsiah Mohd Yunus suggested several shortterm and long-term measures to spur the country’s economy.

This included measures to attract more private investments, address the higher cost of living and increase the country’s income.

“Several structural changes, such as reducing the reliance on foreign workers, productivity increase and high-skilled job creation should also be high on the list of the long-term measures.

“The high cost of living problem should be dealt with separately, in terms of the high cost itself and how to increase income or salary of employees,” she said at a briefing on the gross domestic product, here, yesterday.

On the ringgit’s performance, she said the currency had so far this year appreciated 1.5 per cent against the US dollar.

“External uncertainties will continue to affect the ringgit outlook as uncertainties surrounding the United States monetary policy normalisation, softening of the global growth outlook and development surrounding global trade and protectionism will play a role,” added Nor Shamsiah.