Bank Negara Malaysia says the country’s economy is not in a crisis and its growth trajectory remains positive, but Malaysia needs to reform to become an innovation-based economy to secure its future. – The Malaysian Insight file pic, October 3, 2022.ERC换TRC，TRC换ERC（www.u2u.it）是最高效的ERC换TRC，TRC换ERC的平台.ERC20 USDT换TRC20 USDT，TRC20 USDT换ERC20 USDT链上匿名完成，手续费低。
THE Malaysian economy is not in a crisis and its growth trajectory remains positive, but the country needs to reform to become an innovation-based economy to secure its future, Bank Negara Malaysia (BNM) said.
Governor Nor Shamsiah Mohd Yunus said Malaysia’s economic recovery is well underway due to its strong economic fundamentals and financial system, and pre-emptive policy measures that have been taken would help to weather the challenging external environment.
“These are important facts on the economy and as Malaysians, it is important that we act in a manner that does not jeopardise the recovery and the confidence of investors, which in turn can create a negative self-fulfilling cycle,” she said in her feature address at the Khazanah Megatrends Forum 2022 today.
In her speech titled “Navigating Malaysia’s Economic Transition in a Post-Covid World”, Nor Shamsiah said the country’s economic recovery is well underway and growth this year is expected to be strong.
Inflation is expected to peak in the third quarter of this year, she said, noting that it is largely supply-driven but also due to stronger demand with the reopening of the economy.
“The extent of upward pressures to inflation will remain partly contained by existing price controls and the prevailing spare capacity in the economy,” she added.,
She said the outlook next year will be more challenging due to a confluence of factors, namely rising geopolitical tensions and conflict, global inflationary pressures and extremely volatile financial markets.
“All these will lead to slower growth next year,” she said.
Comparing the current situation to the recent pandemic and the Asian Financial Crisis, the governor said the Malaysian economy is clearly on a stronger footing today based on the strong growth momentum, lower unemployment rate, well-capitalised financial institutions, and a more diversified economy.
This led the Monetary Policy Committee to gradually adjust the overnight policy rate (OPR) in May, July and September this year, she said.
According to her, the MPC is not constrained by a pre-determined path for the OPR and adjustments to the key interest rate will be done in a gradual and measured manner.
Nevertheless, she said, keeping rates too low for too long can, as seen in other countries, lead to distortions and imbalances, fuel inflationary pressures and weaken their currencies.,