KUALA LUMPUR:The country’s monetary and financial position remained resilient throughout the onslaught of the COVID-19 pandemic and supportive of economic recovery, said the Ministry of Finance (MoF).
The accommodative monetary policy cushioned the adverse economic effects of the COVID-19 containment measures and provided additional stimulus to sustain the pace of economic recovery, the ministry said in its Economic Outlook 2021 report released today.
The MoF expects the monetary operation to be supported by the vibrant money and foreign exchange markets, as well as intermediation activities.
On monetary developments, it said Bank Negara Malaysia has cumulatively reduced the overnight policy rate (OPR) by 125 basis points (bps) during the first seven months of 2020 to a historic low of 1.75 per cent.
The interest rate in the banking system was also lowered in line with the OPR adjustment.
MoF expects the banking sector to remain robust and orderly, underpinned by ample liquidity and strong capital buffers.
“The capital market will continue be resilient, driven by well-developed infrastructure and instruments.
“Nevertheless, concerns over the momentum of global economic recovery due to the pandemic, continued United States-China trade tensions, weak commodity prices and volatile global financial markets may affect financial and capital market performance,” it said.
Between January and July 2020, domestic banks remained strong in spite of the challenging environment, supported by the orderly financial markets and sustained confidence in the banking sector.
During the period, lending activities had slowed down, reflecting the cautious sentiment on the global and domestic growth outlook, with loan approvals and disbursements falling by 22 per cent and 7.3 per cent to RM185.5 billion and RM657.1 billion, respectively.
Loan approvals to businesses decreased by 12.5 per cent to RM80.7 billion as at end-July 2020, while loan approvals to households declined by 30 per cent to RM88.9 billion.
The overall household debt increased by 4.0 per cent to RM1.27 trillion, accounting for 87.5 per cent of gross domestic product (GDP) as at end-June 2020.
MoF said the increase was mainly due to the sharp contraction in GDP during the first half of 2020, with the bulk of the debt comprising loans for the purchase of residential properties (55.9 per cent).
-- BERNAMA
Bernama
Fri Nov 06 2020
Bank Negara Malaysia has cumulatively reduced the overnight policy rate (OPR) by 125 basis points (bps) during the first seven months of 2020 to a historic low of 1.75 per cent. - file pic
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.