Malaysia central bank to ensure stability amid global volatility, governor says
2024.11.07 05:19
KUALA LUMPUR (Reuters) – Narrowing interest rate differentials between Malaysia and major economies is good for Malaysia’s ringgit, despite greater volatility in global markets following the U.S. election, Malaysia’s central bank chief said on Thursday.
Abdul Rasheed Ghaffour said Bank Negara Malaysia would do what was required to maintain a financial market environment conducive for investment and economic activity.
“The central bank will play its part and do what is needed to ensure both monetary and financial stability,” Abdul Rasheed said at an event to launch a new investment portal for Malaysia.
“We are closely monitoring global developments and stand ready to manage any spillover to domestic markets, including by ensuring sufficient liquidity in the domestic foreign exchange market.”
Malaysia’s central bank kept its key policy rate unchanged at 3.00% on Wednesday in its final meeting of the year, as widely expected, reflecting a positive economic outlook and steady inflation, while warning of potential currency volatility.
Abdul Rasheed said the domestic landscape remained on a firm footing, owing to Malaysia’s solid economic prospects and fundamentals, which gave him confidence on the investment front.
Malaysia has received a slew of digital investments from major tech firms this past year, including Alphabet (NASDAQ:)’s Google, helping to propel its economy with growth beating market expectations in the last two quarters and the ringgit becoming one of Asia’s top performers.
At the same event on Thursday, Second Finance Minister Amir Hamzah Azizan said Malaysia would in the first quarter of 2025 announce a new investment incentives framework, which would also include new strategic investment funds.
