Malaysia hasn’t borrowed from development banks in two decades

MALAYSIA has gained tremendously from the financing services provided by the multilateral development banks (MDB) in the early years of the nation’s infrastructure, industrial and economic development.

As the country’s capital market became more dynamic and to reduce exposure to foreign exchange risks, Malaysia has not been borrowing from the MDBS over the past two decades.

Nevertheless, the country continues to benefit from its membership with the MDBS through various facilities.

An MDB is an international financial institution commissioned by countries with the aim of encouraging economic development, particularly in poorer nations.

One of the benefits is the reimbursable advisory services provided by the World Bank Group (WBG) on a vast range of areas, including sustainable development, competitiveness and economic management.

Through the WBG’S local presence since 2015, Malaysia has been able to gain direct access to the WBG’S pool of knowledge and expertise to enhance its capacity as the country moves towards a developed and high-income economy.

The WBG also provides analysis on policy challenges and recent economic developments of the country through the publication of the bi-annual Malaysia Economic Monitor (MEM).

The MEM published in June 2019 entitled “Re-energising the Public Service” focuses on the vital role the publc service plays, in line with the government’s reform agenda.

Membership in the International Monetary Fund (IMF) has benefited the country through annual surveillance activities, mandated through Article IV of the Articles of Agreement, which involves an assessment of the nation’s economic and financial developments.

IMF also provides technical assistance in various areas, including public finance management, debt management and taxation.