There Are Still Sweet Spots Amid The Gloom, Says AmBank Group CEO

KUALA LUMPUR, Feb 25 (Bernama) -- The Malaysian economy still has 'sweet spots' that discerning investors and businesses can tap into, considering attractive interest rates and the weak ringgit, despite a less than rossy economic outlook held by many, a prominent banker said. "Our nation has a complementary strategy of monetary and fiscal policies, such as attractive interest rates," AMMB Holdings Bhd Group Chief Executive Officer (CEO) and AmBank (M) Bhd CEO Sulaiman Mohd Tahir said. In a statement Thursday, he said Bank Negara Malaysia (Malaysia's Central Bank) reduced the statutory reserve requirement ratio from 4.0 per cent to 3.5 per cent last month. Additionally, the government has outlined measures under Budget 2016 to address the rising cost of living. "Combined with proactive business and investment policies, all these tangible measures are designed to support demand," he said. As investors look to other opportunities outside of China, Sulaiman said the improving economies in the Southeast Asian region are expected to draw positive attention. "Malaysia, with its fairly resilient economy, stands out," he said, adding that the property sector also has pockets of growth especially where participation from the private sector, corporates and foreign direct investment is strong. On a weaker ringgit, Sulaiman said Malaysia would probably witness an influx of Singapore residents and multinational corporations wanting to expand or relocate to Johor due to the lower cost of prime property. He said the tourism industry and tourism-related industries such as the food and beverage sector should also certainly see a boost in numbers. Moreover, the recent visa exemption for Chinese tourists announced in the recalibrated Budget 2016 could boost the industry further, he said. "We must appreciate the fact that Malaysia continues to be competitive in terms of infrastructure, cost, lending rates and a healthy labour market with a highly educated workforce -- relative to most of our competitors. "Despite the challenges, there are still opportunities out there, it is certainly not all gloom that awaits us this year," he said. -- BERNAMA