Banking & Finance

BNM to introduce Policies to preserve Economic, Financial Stability

Date: 14 February 2018; Type: Legal News; Source: Bernama

KUALA LUMPUR, Feb 14 (Bernama) - Malaysia will continue to introduce new policies, as new risks from external spillovers emerge, in order to preserve macroeconomic and financial stability, says Bank Negara Malaysia (BNM).

In its Quarterly Bulletin, released today, BNM said external spillovers would continue to affect emerging economies in ways that are both expected and unexpected.

"The state of ongoing uncertainties within global policies, economic, political and financial market developments will lead to periods of heightened volatility.

"In such a case, it is important for emerging economies to recognise their autonomy in the conduct of policies to address issues that are unique to the domestic environment, and policies can no longer be constrained to conventional tenets of policy making but instead, new and untested strategies should be considered," it said.

The central bank added that Malaysia implemented a policy strategy that focused mainly on financial market development but included bold 'market-correcting' and prudential measures to deal with the country's unique challenges.

"The policy combination in the series of measures introduced by the Financial Markets Committee (FMC) has been crucial to Malaysia's success in managing financial market volatility.

"As a result, domestic financial market conditions improved substantially," it said.

The FMC introduced measures to further liberalise the domestic financial market, including allowing for better market access, hedging flexibilities and the introduction of new financial market instruments.

Where a larger degree of firmness was required, such as in addressing the issues of offshore ringgit speculative activities, the FMC reinforced the non-facilitation of non-deliverable forward rule.

"Export conversion requirements were put in place to address the imbalances within the domestic foreign exchange market but with sufficient flexibilities accorded to domestic exporters," BNM said.

These measures helped reduce volatility in the ringgit exchange rate while speculative pressures also subsided.

Following this, outflows from short-term non-resident investors improved the composition of non-resident holdings in the domestic financial markets towards more stable and sustainable longer term investors.

The improved domestic financial market conditions, which also coincided with Malaysia's stronger-than-expected economic performance, facilitated the appreciation of the ringgit in 2017 to better reflect underlying fundamentals when global financial market conditions improved.

"More importantly, the orderly functioning of the domestic financial market has continued to support Malaysia's economic growth," BNM added.

MY Bernama

Asean LIP works with Bernama to bring you the latest Malaysian legal news. Bernama is the national news agency of Malaysia. You shall not reproduce the above/ attached materials in whole or in part without the prior written consent of the Publishers and/or Bernama. Neither the Publishers nor Bernama will be liable for any loss, injury, claim, liability, or damage caused directly, indirectly or incidentally to errors in or omissions from the above/ attached materials. The Publishers and Bernama also disclaim and exclude all liabilities in respect of anything done or omitted to be done in reliance upon the whole or any part of the above/attached materials. The access to, and the use of, Asean LIP and contents herein are subject to the Terms of Use.

Get ASEAN LAW ALERT

Legal updates by e-mail. It's Free.

INDUSTRY UPDATES

Exercise of Freedom must be in accordance to Federal Constitution - Eddin Syazlee

JOHOR BAHRU, Aug 14 (Bernama) - The exercise of individual’s right to freedom, be it freedom of religion or speech, must be done in accordance to the provisions in the Federal Constitution, says Deputy Communications and Multimedia Minister Eddin Syazlee Shith.

Read More

INDUSTRY UPDATES

International Malaysia Law Conference 2018

The 4-day International Malaysia Law Conference (“IMLC”) 2018, the flagship biennial event of the Malaysian Bar themed “Raising the Bar: Innovate. Integrate. Emulate.” is underway.

Read More

INDUSTRY UPDATES

IMLC 2018: Change of Government an impetus for strengthening the Rule of Law, says Sultan Nazrin Shah

KUALA LUMPUR, Aug 14 (Bernama) - The recent change of government in Malaysia has given a fresh impetus to strengthen the rule of law in the country, the Sultan of Perak, Sultan Nazrin Shah said today.

Read More

INDUSTRY UPDATES

1Mine urges Government to postpone SST

KUALA LUMPUR, Aug 14 (Bernama) - The government has been urged to postpone implementation of the Sales and Services Tax (SST) come Sept 1 until a directive on the newly passed tax law is clearly outlined.

Read More

INDUSTRY UPDATES

Seizure of Equanimity made according to Legal Procedures - Liew Vui Keong

KUALA LUMPUR, Aug 14 (Bernama) - Minister in the Prime Minister’s Department Datuk Liew Vui Keong told the Dewan Rakat today that the seizure of the superyatch Equanimity was made according to Malaysian procedures and laws.

Read More

INDUSTRY UPDATES

Petronas, Sabah, Negeri Sembilan receive Global Innovation Award

KUALA LUMPUR, Aug 14 (Bernama) - Petroliam Nasional Berhad (Petronas), Sabah Land and Survey Department, and the Negeri Sembilan government have been selected ahead of more than 100,000 companies worldwide to win a global technology award.

Read More

INDUSTRY UPDATES

Call to improve Healthcare System instead of Introducing Health Insurance Scheme

KUALA LUMPUR, Aug 13 (Bernama) - A healthcare advocate had urged the government to reconsider the proposal to introduce national health insurance scheme for the people by taking into considerations it's adverse financial impact in the long term.

Read More

INDUSTRY UPDATES

Najib files Appeal against Gag Order Refusal

KUALA LUMPUR, Aug 13 (Bernama) - Lawyers of former prime minister Datuk Seri Najib Tun Razak today filed an appeal against a High Court refusal to issue an order restraining the media and public from publishing statements on the merits of his case pending its disposal.

Read More

INDUSTRY UPDATES

Johor to consider implementing Open Tender System

ISKANDAR PUTERI, Aug 12 (Bernama) - The state government will consider implementing the open tender system for all projects in Johor to prevent monopolies, said Menteri Besar Datuk Osman Sapian.

Read More

INDUSTRY UPDATES

SMEs need to collaborate with IPTS to embrace Technologies

KUANTAN, Aug 13 (Bernama) - Small and medium enterprises (SMEs) need to collaborate with local institutions of higher learning (IPTs) to enable them to brace technologies in order to be more competitive in the face of the fourth industrial revolution (Industry 4.0).

Read More

INDUSTRY UPDATES

Mixed Reaction in Construction-Related Stocks following SST Announcement

KUALA LUMPUR, Aug 13 (Bernama) - The prices of construction-related stocks saw a mixed performance today following the Finance Ministry’s announcement on the tax exemption of some construction materials.

Read More

INDUSTRY UPDATES

GST Refunds should be settled before SST kicks in

KUALA LUMPUR, Aug 11 (Bernama) - The Finance Ministry has been urged to find a swift solution regarding the Goods and Goods and Services Tax (GST) refunds before the implementation of Sales and Services Tax (SST) this September.

Read More

INDUSTRY UPDATES

740 Violations detected in Food Premises under Sarawak Labour Ordinance

KUCHING, Aug 9 (Bernama) - The Sarawak Labour Department today conducted simultaneous operations throughout the state on 140 employees’ workplaces in food premises in which 740 violations were detected under the Labour Ordinance.

Read More

INDUSTRY UPDATES

Marriage Age Amendment, Stakeholders' views crucial

KOTA KINABALU, Aug 9 (Bernama) - The government will take into consideration the views of all stakeholders in the discussions to raise the marriage age limit in the country from 16 to 18 years before any decision is made, said Minister in the Prime Minister's Department Datuk V.K Liew.

Read More

INDUSTRY UPDATES

EPF and Grab sign MoU to promote i-Saraan among Ride-hailing Drivers

KUALA LUMPUR, Aug 9 (Bernama) - The Employees Provident Fund (EPF) and ride-hailing service provider, Grab Malaysia, signed a memorandum of understanding (MoU) to encourage the ride-hailing driver-partners community to participate in EPF’s voluntary retirement savings programme, Caruman Sukarela Insentif Persaraan (i-Saraan).

Read More