MALAYSIA CAN BUFFER EXTERNAL SHOCKS, SAYS JOHARI
KUALA LUMPUR, Malaysia — Malaysia’s current capital market and financial asset portfolio, worth RM5.5 trillion, will be able to support the country’s economy and buffer any external shocks and fund outflows, said Second Finance Minister Johari Abdul Ghani.
Of the amount, the capital market was valued at RM3.1 trillion, comprising equities (RM1.8 trillion) and bonds (RM1.3 trillion) while the remaining RM2.4 trillion was in financial assets.
These are the fundamentals that we have. The strength of our financial system, capital market, banking system and assets would be able to sustain any outflow, he told reporters after a luncheon talk with media practitioners here today.
Johari cited that despite the outflow of RM32 billion in the first quarter of this year, Malaysia was still able to sustain economic growth.
He also said that Malaysia’s diversified economy, which no longer depended heavily on oil revenue, played a huge role in helping the country withstand external impact in the likes of prolonged volatility in world commodity prices coupled with the uncertainty in global financial markets as a result of changing policies in countries like the United States.
Being an open economy, you need to be prepared yourself. We have diversified our trade, economic structure; strengthen our financial system, government and human capital. These are all the basic fundamentals of the government, he said.
Johari added that solid infrastructure development in the country such as the Kuala Lumpur International Airport, Port of Tanjung Pelepas and the Mass Rapid Transit, have all contributed positively to the country’s good fundamentals.
The two major financial crisis of 1997/98 and 2008/2009, which saw Malaysia’s gross domestic product contract severely, had cemented strong support for the country to remain resilient, going forward.
Over a period of time, we learnt from our mistakes, he added.
Source: NAM NEWS NETWORK