ID :
122003
Fri, 05/14/2010 - 08:44
Auther :
Shortlink :
https://oananews.org//node/122003
The shortlink copeid
NO THREAT OF CONTAGION FROM EUROPE'S DEBT CRISIS, SAYS MALAYSIAN CENTRAL BANK
KUALA LUMPUR, May 14 (Bernama) -- Malaysia does not see any serious threat of contagion from Europe's debt crisis with the country's strong economic fundamentals and low government debt level of two per cent of the gross domestic product (GDP).
"However, if it spreads to other developing economies and gets out of hand,
we need to reassess the situation," Bank Negara (central bank) Malaysia's
governor Dr Zeti Akhtar Aziz said during a media briefing here Thursday.
"Our banking system has limited exposure to the debts in Europe," she said.
According to Zeti, Malaysia will continue to see strong economic growth in
the coming quarters.
"Going forward, growth is expected to be sustained, supported by the
continued expansion in domestic and external demand," she said.
Malaysia recorded a 10.1 per cent growth in its first-quarter GDP, she said,
adding that the full-year forecast on GDP would be announced during the coming
budget.
Zeti said the monetary policy on interest rates remained supportive to
promote growth, with inflation likely to remain modest.
The overnight policy rate (OPR) was raised today by 25 basis points to 2.5
per cent towards further normalisation of monetary conditions.
The next policy decision will be in July this year.
As for the ringgit, Zeti said, exporters should not rely on the currency
exchange rate to be competitive.
The ringgit appreciation was not really a concern, she said, adding that it
had been on a declining trend for the past two years.
She also said that the ringgit and most regional currencies strengthened in
the first quarter due to trade, investment and portfolio inflows as well as
confidence in regional growth prospects.
Malaysia's financial sector, according to Zeti, remained resilient with the
net non-performing loan ratio at 1.8 per cent as at March 2010, the same level
as at December 2009.
She said the country's total external debt had also declined to RM218
billion (US$1=RM3.2) as at end-March 2010 from RM233.1 billion at end-December
last year.
"External debt declined to 30 per cent of gross national income as at
end-March 2010 from 35.2 per cent at end-December," she added.
Gross inflows of foreign direct investment amounted to RM4.6 billion in the
first quarter (fourth quarter 2009: RM10.1 billion), channelled mainly into the
manufacturing, services, and oil and gas sectors.
Net direct investment abroad by Malaysian companies was lower at RM2.3
billion (fourth quarter 2009: RM5.2 billion), arising from lower net extension
of inter-company loans to subsidiaries abroad and lower outflows of equity
capital.
Portfolio investments turned around to record a net inflow of RM3.9 billion
(fourth quarter 2009: RM2.6 billion), mainly into the domestic debt market.
-- BERNAMA
"However, if it spreads to other developing economies and gets out of hand,
we need to reassess the situation," Bank Negara (central bank) Malaysia's
governor Dr Zeti Akhtar Aziz said during a media briefing here Thursday.
"Our banking system has limited exposure to the debts in Europe," she said.
According to Zeti, Malaysia will continue to see strong economic growth in
the coming quarters.
"Going forward, growth is expected to be sustained, supported by the
continued expansion in domestic and external demand," she said.
Malaysia recorded a 10.1 per cent growth in its first-quarter GDP, she said,
adding that the full-year forecast on GDP would be announced during the coming
budget.
Zeti said the monetary policy on interest rates remained supportive to
promote growth, with inflation likely to remain modest.
The overnight policy rate (OPR) was raised today by 25 basis points to 2.5
per cent towards further normalisation of monetary conditions.
The next policy decision will be in July this year.
As for the ringgit, Zeti said, exporters should not rely on the currency
exchange rate to be competitive.
The ringgit appreciation was not really a concern, she said, adding that it
had been on a declining trend for the past two years.
She also said that the ringgit and most regional currencies strengthened in
the first quarter due to trade, investment and portfolio inflows as well as
confidence in regional growth prospects.
Malaysia's financial sector, according to Zeti, remained resilient with the
net non-performing loan ratio at 1.8 per cent as at March 2010, the same level
as at December 2009.
She said the country's total external debt had also declined to RM218
billion (US$1=RM3.2) as at end-March 2010 from RM233.1 billion at end-December
last year.
"External debt declined to 30 per cent of gross national income as at
end-March 2010 from 35.2 per cent at end-December," she added.
Gross inflows of foreign direct investment amounted to RM4.6 billion in the
first quarter (fourth quarter 2009: RM10.1 billion), channelled mainly into the
manufacturing, services, and oil and gas sectors.
Net direct investment abroad by Malaysian companies was lower at RM2.3
billion (fourth quarter 2009: RM5.2 billion), arising from lower net extension
of inter-company loans to subsidiaries abroad and lower outflows of equity
capital.
Portfolio investments turned around to record a net inflow of RM3.9 billion
(fourth quarter 2009: RM2.6 billion), mainly into the domestic debt market.
-- BERNAMA
