Structural reforms continue to underpin Malaysia's resilience, says Bank Negara Governor
KUALA LUMPUR: Structural reforms continue to underpin Malaysia's resilience, strengthening fiscal discipline, attracting high-quality investment and expanding economic opportunities, said Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour today.
He said progress in strategic areas such as energy transition, digital infrastructure, and high-value manufacturing is laying the foundation for a more inclusive and competitive economy.
"These reforms are important, not just for growth but also for currency stability. This is especially vital in today's environment, where shocks are more frequent, and volatility is increasingly becoming a norm,' he said in his opening address at the MyFintech Week 2025 here today.
Abdul Rasheed said the ringgit, like many emerging market currencies, has felt the weight of these uncertainties from time to time.
"Yet this year, we have seen some encouraging signs where the tailwind from reforms has, in part, led to renewed investor interest and provided support to the ringgit,' he added.
As of market closing yesterday, Abdul Rasheed said the domestic currency has appreciated by 5.55 per cent against the US dollar and 1.8 per cent against Malaysia's major trading partners.
"Our sound economic fundamentals and coordinated efforts to promote balanced and orderly currency flows will continue to support the ringgit," he said, adding that the central bank had revised the economic outlook forecast to a range of between 4.0 per cent and 4.8 per cent this year, reflecting heightened uncertainties on global trade.
He noted that the economic outlook remained supported by resilient domestic demand and sustained investment in infrastructure for strategic sectors under the national development plans.
Meanwhile, inflation is projected to remain moderate, with headline inflation expected to average between 1.5 per cent and 2.3 per cent in 2025.
"This revision in projection reflects the continued easing in cost and a steady demand outlook. In this environment, the impact of domestic policy measures is expected to remain contained,' Abdul Rasheed said. - Bernama
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