Malaysia In Strong Position To Face Large Capital Flows - Perak State Ruler

IPOH (Perak, Malaysia), April 12 (Bernama) -- Malaysia is in a strong position to face large capital flows as it is safeguarded by economic adjustments, financial buffers and a good framework, the Perak state Ruler, Sultan Nazrin Shah said. Expecting continuous cash flow fluctuations, he said Bank Negara Malaysia (Malaysia's Central Bank) would ensure that adequate domestic liquidity in the financial system for the orderly functioning of the financial market. "The strong economic foundation allows Malaysia to benefit from reforms and structural adjustment programmes implemented," he said when opening the 13th Perak State Assembly here Tuesday. While the country's exports support growth, he also attributed the country's strong position to diverse sources of growth, good external position as well as sufficient capital in the banking system and a well-developed capital market. With the country's growth expected to be between four and 4.5 per cent this year, Raja Nazrin called for careful evaluation of the global economic and financial developments, especially their implications to the country's growth prospect and inflation. "Domestic demand will continue to be the main driver of growth, supported in particular by the private sector. The external sector will continue to provide support to growth," he said. In the context of Perak, he commended the state government in managing its revenue and expenditure efficiently and maintained revenue surplus for six consecutive years since 2010. "Last year, Perak recorded a revenue surplus of US$1.95 million (RM7.59 million) compared with a deficit of US$12.9 million (RM50.06 million) in the 2015 Budget," he said. (US$1 = RM3.87) He said last year, the Malaysian Investment Development Authority approved investments worth RM3.9 billion in the manufacturing sector for Perak, of which foreign investment constituted RM3.4 billion and domestic investments RM527 million. The Sultan of Perak said mineral resources had been identified as potential revenue earners and Perak was the first state to launch a Mineral Development Masterplan which was aimed at improving mineral activities besides ensuring sustainable, responsible and environmentally-friendly development. Sultan Nazrin cited clay from Trong, which was being exported to the world's largest ceramic producer, and high-grade kaolin which was being exported to leading cosmetic manufacturers abroad. (photoBERNAMA) -- BERNAMA