Malaysia must focus on ensuring resilience, competitiveness of economy
16 Jun 2015
Source: THE STAR ONLINE
KUALA LUMPUR: Malaysia must focus on ensuring the resilience and competitiveness of the economy and financial system amid a volatile global environment, said Bank Negara deputy governor Dr Sukhdave Singh.
He said the country would, over time, become even more integrated with the global economy and financial system in order to grow as well as prosper.
“We need the global market and we need foreign investments,” he said in his keynote address at the Financial Markets Price Outlook Conference 2015 in Kuala Lumpur on Tuesday.
The text of his speech was released to the media on the same day.
Over the longer term, the contributions of the external sector would need to expand to support a healthy and sustainable economy, Sukhdave said.
He said in order to achieve this, Malaysia needed to continue focusing on strengthening economic relationships with other countries.
“The Asean Economic Community is one opportunity for us to do so.
“The Trans-Pacific Partnership Agreement that is currently being negotiated by 12 countries, including Malaysia, is another,” he said.
Earlier, Sukhdave said, the volatility in the global financial markets would continue to create a challenging environment for both policymakers and participants in the country’s financial markets.
Meantime, all the major economies which were showing positive growth for the first time, would provide support to growth of the Malaysian economy, he said.
“However, until global growth can become self-reinforcing, the weak nature of external demand will remain a challenge,” he said.
Sukhdave said there were two trends with respect to the global economy and financial markets that were relevant in terms of their impact on Malaysia.
“First, there is better growth in the advanced economies (AEs) but the growth remains weak and uneven, while the emerging markets’ economies are continuing to experience growth but that growth is now slower.
“Second, the monetary policies of the AEs remain very easy and are not likely to change significantly in the near term,” he said. - Bernama