Kuala lumpur: Strengthening economic fundamentals and policy buffers amid uncertainties to global trade are crucial tools to ensure continuous growth and, in the process, guarantee the well-being of the rakyat, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour. He highlighted the importance of improving fiscal sustainability and attracting quality investments to advance urgent reforms for social protection and the labour market. These reforms, he noted, are essential despite the short-term adjustments they may require, to ensure inclusive growth that benefits all Malaysians.
According to BERNAMA News Agency, the central bank predicted Malaysia's Gross Domestic Product (GDP) to grow between four per cent and five per cent in 2026, citing the country's domestic resilience and diversified export structure as a solid foundation to navigate current external headwinds. Abdul Rasheed emphasized the need for Malaysia to build an economy that creates better-paying jobs, supports households and businesses, and remains resilient for decades. The financial sector, he noted, continues to be effective in mobilizing funds, supported by ample liquidity buffers and sound asset quality, ensuring continued access to financing for households and businesses.
He further discussed the role of ASEAN as a source of strength amid global trade tensions, with BNM leading efforts to advance deeper regional financial and economic integration. The expansion of regional payment connectivity, with 29 operational payment linkages across ASEAN, facilitates quicker, more secure, and cost-effective transactions, supporting livelihoods across communities. Enhancements to the Chiang Mai Initiative Multilateralisation and strategies under the ASEAN Geoeconomics Task Force have bolstered ASEAN's capacity to respond collectively to external shocks, adding resilience against global uncertainties.
Abdul Rasheed assured that BNM remains vigilant in navigating upcoming challenges while focusing on longer-term priorities to enhance economic prospects and preserve resilience. The Monetary Policy Committee will monitor developments closely and assess risks to growth and inflation. As the Financial Sector Blueprint (FSBP) 2022-2026 enters its final phase, efforts to facilitate innovation in areas such as digital finance, stablecoins, and climate adaptation will be accelerated, ensuring a safe and responsible progression for Malaysia's financial sector.