Moderate global economic expansion in Q3 2016 - BNM

He said the economy sees moderate growth fueled by private consumption demand and support from net exports.

Further contributors include the increase in servicing, manufacturing and construction sectors of 6.1 per cent, 4.2 per cent and 7.9 per cent, respectively, he added.

Muhammad said inflation rate moderated to 1.3 per cent and the unemployment rate sits at a steady 3.5 per cent.

Meanwhile, the current household debt is reported at 88.7 per cent and the current government debt at 52.2 per cent.

Commenting on the current depreciation of the ringgit, Muhammad said it was driven by speculation and lack of investor confidence in the global market. In a statement today, he said “The ringgit must be supported by underlined transactions of the banks on a daily basis to ensure pricing is done correctly.”

He said this will entail a certain guideline for banks to ensure the market is not dictated by events that are irrelevant to the Malaysian economy.

Furthermore, as he discussed the possible impact of the recent US presidential election, Muhammad said, “To make an assessment now is too early but the Malaysian economy should be resilient to absorb any forthcoming shock in the market.”

As the US policy becomes more apparent, necessary changes will be made to accommodate it, he added.

He said the Malaysian economy has always welcomed open trade policies and will continue to encourage the industry to strive for increased globalization.