Malaysia undertakes structural reforms to safeguard economy
Abdul Rasheed said Malaysia’s foresight had enabled the country to weather these shocks, such as the ravaging COVID-19 pandemic five years ago and impending challenges brought on by the US's imposition of tariffs.
Malaysia's Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour (Photo: Bernama)
Kuala Lumpur (VNA)𒆙 - Governor of Bank Negara Malaysia (BNM) Datuk Seri Abdul Rasheed Ghaffour emphasised the importance of ongoing structural reforms in protecting the Malaysian economy against global shocks.
He said Malaysia’s foresight had enabled the country to weather these shocks, such as the ravaging COVID-19 pandemic five years ago and impending challenges brought on by the US's imposition of tariffs.
The official said Malaysia’s endeavours to push for social equity and fiscal sustainability had also reinforced the economy and elevated it to a position of strength, including preparing a future-ready workforce and enhancing social protection systems.
Malaysia’s foresight in undertaking financial and economic reforms over the decades, he added, has helped strengthen the nation’s economic fundamentals, enabling the country to weather uncertainties.
Abdul Rasheed emphasised that the government’s commitment to reform, particularly through rebuilding fiscal space, is important for the government to support the economy effectively during challenging periods. Key to this, he said, are policies to attract high-quality investments that increase economic complexity, create high-value jobs, extend domestic linkages, develop economic clusters and improve inclusivity.
As evidence, Malaysia recorded a historic high of approved investments amounting to 378.5 billion MYR (nearly 90 billion USD) in 2024, he said.
Beyond creating new, higher-paying jobs, the central bank's governor said Malaysia needs to create a more agile and future-ready workforce through labour market reforms, while enhancing the nation’s social protection systems.
He said that targeted roll-outs of measures, alongside supportive measures, can help ease the transition./.
Treasury secretary-general Datuk Johan Mahmood Merican said the country's fiscal consolidation efforts are bearing fruit, with the budget deficit narrowing from 5.5% of GDP in 2022 to 4.1% last year and further targeted to reach 3.8% in 2025.
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