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22 Oct 2019 | International Reserves of Bank Negara Malaysia as at 15 October 2019 | https://www.bnm.gov.my/-/reserve-15102019 | null | null |
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International Reserves of Bank Negara Malaysia as at 15 October 2019
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International Reserves of Bank Negara Malaysia as at 15 October 2019
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The international reserves of Bank Negara Malaysia amounted to USD103.3 billion as at 15 October 2019.The reserves position is sufficient to finance 7.6 months of retained imports and is 1.1 times total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (15 October 2019)
Bank Negara Malaysia
22 October 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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18 Oct 2019 | Engagement with SME Community in Langkawi | https://www.bnm.gov.my/-/engagement-with-sme-community-in-langkawi | null | null |
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Engagement with SME Community in Langkawi
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Engagement with SME Community in Langkawi
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18 Oct 2019
In a bid to enhance engagement with SMEs in Langkawi, Bank Negara Malaysia (BNM) today held a dialogue session with financial institutions, state government officials and the local business community.
The dialogue sought to gain understanding and feedback on financing related issues faced by the island's local businesses including perceptions on access to financing. BNM took the opportunity to brief SMEs and raise awareness on the Bank's latest initiatives for small and medium enterprises (SMEs). The dialogue was chaired by Assistant Governor Adnan Zaylani Mohamad Zahid on 18 October 2019.
The dialogue session received positive response from the SMEs and business community shared their views on the current business challenges. Representatives from 17 SMEs Associations and Business Chambers attended and contributed to a lively session.
Amongst the main issues highlighted by SMEs include lack of awareness and understanding on financing schemes available for SMEs particularly microfinance, uncertainty of business (whereby revenues hinge on seasonal tourism activity), initiatives to enhance borrowers' eligibility following unsuccessful financing applications and issues on rescheduling and restructuring of credit facilities. The taxi associations also provided feedback on the cost of insurance which does not commensurate with the business risks in Langkawi. BNM took note of the feedback and will collaborate with the insurance industry to look at the matter.
BNM also elaborated on the recently announced measures that can further improve the SME financing eco-system such as Khidmat Nasihat Pembiayaan (MyKNP) and the newly expanded scope of Small Debt Resolution Scheme (SDRS).
SMEs seeking advisory and assistance in raising their eligibility for financing can now utilise Khidmat Nasihat Pembiayaan (MyKNP) - a collaborative effort between BNM, Credit Guarantee Corporation Malaysia Berhad (CGC) and Agensi Kaunseling dan Pengurusan Kredit (AKPK). MyKNP aims to improve financing applicants' experience, including providing greater understanding of the factors affecting their financing applications. Applicants who have been unsuccessful in securing SMEs or home financing can reach out to MyKNP for assistance (http://myknp.com.my).
To assist SMEs facing loan repayment difficulties, SDRS is a scheme that allows space for SMEs to focus on revival plans for their businesses. SMEs are able to restructure and reschedule their existing facilities with the financial institutions or seek redress under the SDRS.
SDRS is a platform for financial institutions and SMEs to work out possible debt rehabilitation solutions amicably and collectively without resorting to legal recourse.
The eligibility criteria for SDRS has recently been expanded to also include SMEs which have ceased operations yet still have the ability from other sources of income to repay their debt obligations with other sources. This serves as an out-of-court assistance and intervention to the SMEs. For further information on SDRS or other SMEs please contact BNMTELELINK at 1-300-88-5465 (LINK).
SMEs are strongly encouraged to maintain proper conduct of business current accounts as this can strongly support their financing applications to financial institutions. SMEs may also benefit from the Skim Pembiayaan Mikro where they can apply for financing without collateral for up to RM50,000 from 10 participating financial institutions. Small or micro enterprises should formalise or register their businesses with Suruhanjaya Syarikat Malaysia in order to be eligible for the financing schemes including "Tabung BNM untuk PKS".
Bank Negara Malaysia
18 October 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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10 Oct 2019 | Engagement with SME Community in Sandakan | https://www.bnm.gov.my/-/engagement-with-sme-community-in-sandakan | null | null |
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Engagement with SME Community in Sandakan
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Engagement with SME Community in Sandakan
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Thursday, 10 October 2019
10 Oct 2019
Bank Negara Malaysia (BNM) today, held a dialogue session with key representatives from associations of small and medium enterprises (SMEs) and business chambers in Sandakan, Sabah. The dialogue, chaired by Assistant Governor Adnan Zaylani Mohamad Zahid, was held in conjunction with Karnival Kewangan Sandakan which will take place on 12 and 13 October 2019 at Harbour Mall, Sandakan.
The dialogue session received positive response from the SMEs and business chambers in Sandakan. At the dialogue, the Sandakan business community shared their views on the current business challenges. Amongst the issues highlighted by SMEs were in obtaining business licenses from the local authorities, lack of financial and business management capabilities among the SMEs as well as awareness on the availability of capacity building programmes and financing schemes for SMEs. In addressing the demand for capacity building, the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) and a few other financial institutions have agreed to collaborate with the SME associations to educate and upskill their members.
Some local businesses also requested financial institutions to be more flexible in dealing with SME customers in the current challenging business environment. While acknowledging these, BNM also explained recent measures that accorded such flexibilities that enabled SMEs to restructure and reschedule existing facilities. SMEs were also encouraged to maintain active conduct of business current accounts which could support their financing applications to financial institutions. SMEs may also benefit from the Skim Pembiayaan Mikro where they can apply for financing without collateral for up to RM50,000 from 10 participating financial institutions.
Assistant Governor Adnan Zaylani emphasised that apart from banks, SMEs have options to source financing from development financial institutions, Credit Guarantee Corporation Malaysia Berhad (CGC) and alternative finance providers such as Peer-to-Peer Financing and Equity Crowdfunding platforms which are regulated by the Securities Commission Malaysia.
SMEs may also seek financial advisory, assistance and redress at first sign of difficulties. SMEs can obtain information regarding BNM’s Fund for SMEs as well as avenues for financial advisory and redress such as the Small Debt Resolution Scheme (SDRS). For more information, please visit our website at www.bnm.gov.my.
In addition, SMEs can utilise Khidmat Nasihat Pembiayaan (MyKNP) which is a joint collaboration by BNM, CGC and Agensi Kaunseling dan Pengurusan Kredit, with the support of the financial industry. MyKNP aims to improve financing applicants' experience, including providing greater understanding of the factors affecting their financing applications as well as help in raising their eligibility for future financing. Applicants who have been unsuccessful in securing SME or home financing can reach out to MyKNP for assistance (myknp.com.my).
BNM will continue to collaborate with the Sabah state government and the financial industry to extend the reach and depth of financial services to the local community and businesses. Moving forward, BNM will hold similar dialogues to bridge the financial sector and local communities to ensure an efficient and effective ecosystem for SMEs.
Bank Negara Malaysia
10 October 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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07 Oct 2019 | International Reserves of Bank Negara Malaysia as at 30 September 2019 | https://www.bnm.gov.my/-/reserve-30092019 | null | null |
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International Reserves of Bank Negara Malaysia as at 30 September 2019
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International Reserves of Bank Negara Malaysia as at 30 September 2019
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The international reserves of Bank Negara Malaysia amounted to USD103.0 billion as at 30 September 2019. The reserves level has taken into account the quarterly adjustment for foreign exchange revaluation changes. The reserves position is sufficient to finance 7.6 months of retained imports and is 1.1 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (30 September 2019)
Bank Negara Malaysia
7 October 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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30 Sep 2019 | Detailed Disclosure of International Reserves as at end-August 2019 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-august-2019 | null | null |
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Detailed Disclosure of International Reserves as at end-August 2019
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Detailed Disclosure of International Reserves as at end-August 2019
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30 Sep 2019
In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD103,489.2 million, while other foreign currency assets amounted to USD62.0 million as at end-August 2019. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from maturity of the foreign currency Bank Negara Interbank Bills, amount to USD5,724.3 million. The short forward positions amounted to USD13,673.8 million as at end-August 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to USD2,477.1 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD336.7 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-August 2019, Malaysia’s reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
30 September 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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30 Sep 2019 | Monetary and Financial Developments in August 2019 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-august-2019 | https://www.bnm.gov.my/documents/20124/93678/i_en.pdf | null |
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Monetary and Financial Developments in August 2019
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Monetary and Financial Developments in August 2019
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This document is in Portable Document File (PDF) format.
In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
If you already have the software, read the document. [PDF, 225KB]
See also: Monthly Highlights and Statistics August 2019
Bank Negara Malaysia
30 September 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
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-2
2
F
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-2
2
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A
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2
M
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-2
2
J
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-2
2
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2
2
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-2
2
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-2
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2
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-2
3
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2
3
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3
M
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-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
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2
J
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3
A
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2
3
M
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2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
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3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
27 Sep 2019 | Bilateral Meeting between Bank Negara Malaysia and Bank Indonesia | https://www.bnm.gov.my/-/bilateral-meeting-between-bank-negara-malaysia-and-bank-indonesia | null | null |
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27 Sep 2019
At the Bank Negara Malaysia (BNM) and Bank Indonesia (BI) bilateral meeting held in Kuala Lumpur today, Governor Perry Warjiyo and Governor Nor Shamsiah Yunus signed the following agreements to further strengthen bilateral monetary and financial cooperation between the central banks:
Local currency bilateral swap agreement (LCBSA), which will enable both central banks to access foreign currency liquidity from each other if needed; and
Memorandum of Understanding (MoU) to forge closer cooperation on innovation in payments and digital financial services, as well as surveillance on anti-money laundering and counter financing of terrorism (AML/CFT).
The LCBSA allows for the exchange of local currencies between the central banks of up to RM8 billion or IDR28 trillion (around USD 2 billion). This will complement efforts to support the wider usage of local currencies to facilitate cross-border economic activity between Malaysia and Indonesia. The effective period of the arrangement is three years and it can be extended by mutual agreement of the central banks.
Moving in tandem with the increasing interdependence of technological advancements in financial services, the MoU reaffirmed the commitment of both central banks in supporting the development of payment systems and digital financial innovation as part of initiatives to advance financial development and integration between the two countries. The meeting also discussed recent economic and financial developments, including in the areas of Islamic finance, social financing and financial market development.
At the end of the meeting, the central banks expressed their commitment in strengthening cooperation between both nations to further enhance financial sector development in achieving sustainable economic progress.
Governor Bank Negara Malaysia Nor Shamsiah Yunus and Governor Bank Indonesia Perry Warjiyo signing the Memorandum of Understanding (MoU) at a bilateral meeting between both central banks, held in Kuala Lumpur.
Bank Negara Malaysia
27 September 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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27 Sep 2019 | Inaugural Meeting of Joint Committee on Climate Change | https://www.bnm.gov.my/-/inaugural-meeting-of-joint-committee-on-climate-change | null | null |
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Inaugural Meeting of Joint Committee on Climate Change
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Inaugural Meeting of Joint Committee on Climate Change
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27 Sep 2019
Bank Negara Malaysia (“Bank”) today announces the formation of the Joint Committee on Climate Change (JC3). The JC3 is intended to pursue collaborative actions for building climate resilience within the Malaysia financial sector.
The JC3 is co-chaired by Deputy Governor Jessica Chew Cheng Lian from the Bank and Deputy Chief Executive Datuk Zainal Izlan Zainal Abidin from Securities Commission Malaysia (SC). Members comprise senior officials from Bursa Malaysia and 19 industry players. The JC3 will be guided by three key mandates –
building capacity through sharing of knowledge, expertise and best practices in assessing and managing climate-related risks;
identifying issues, challenges and priorities facing the financial sector in managing the transition towards a low carbon economy; and
facilitating collaboration between stakeholders in advancing coordinated solutions to address arising challenges and issues.
On 27 September 2019, the JC3 held its inaugural meeting following the successful conclusion of the Regional Conference on Climate Change which took place from 25 to 27 September 2019. The JC3 recognised the urgent need to accelerate responses towards ensuring a smooth and orderly transition to a low-carbon economy. This includes managing exposures to climate risks and facilitating businesses to transition towards sustainable practices. To take this forward, the meeting agreed to form four sub-committees focusing on:
risk management;
governance and disclosure;
product and innovation; and
engagement and capacity building.Bank Negara Malaysia
27 September 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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20 Sep 2019 | International Reserves of Bank Negara Malaysia as at 13 September 2019 | https://www.bnm.gov.my/-/reserve-13092019 | null | null |
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International Reserves of Bank Negara Malaysia as at 13 September 2019
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International Reserves of Bank Negara Malaysia as at 13 September 2019
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20 Sep 2019
The international reserves of Bank Negara Malaysia amounted to USD103.5 billion as at 13 September 2019. The reserves position is sufficient to finance 7.6 months of retained imports and is 1.1 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (13 September 2019)
Bank Negara Malaysia
20 September 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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18 Sep 2019 | Bank Negara Malaysia Financial Stability Review - First Half 2019 | https://www.bnm.gov.my/-/bank-negara-malaysia-financial-stability-review-first-half-2019 | https://www.bnm.gov.my/documents/20124/65309/en_table_a1.pdf, https://www.bnm.gov.my/documents/20124/65309/en_fs_01.pdf | null |
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Bank Negara Malaysia Financial Stability Review - First Half 2019
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Bank Negara Malaysia Financial Stability Review - First Half 2019
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18 Sep 2019
Domestic financial stability remained intact in the first half of 2019, amid continued challenges in the external and domestic environment. On the global front, financial vulnerabilities remained elevated on concerns of slower global growth and rising geopolitical tensions which contributed to increased volatility in financial asset and commodity prices. The ongoing trade tensions have also weighed on external demand and regional growth prospects. These developments, coupled with concerns over the review of Malaysian government securities in two global benchmark indices, saw periods of increased volatility in the domestic financial markets. Risks to domestic financial stability however continued to be largely contained, supported by relatively resilient domestic economic growth, orderly market conditions and sound financial institutions.
Domestic financial markets remained orderly despite domestic and external headwinds
Despite increased volatility in financial markets due to both global and domestic developments, orderly conditions were preserved. Strong domestic institutional investors, including financial institutions, have continued to provide an important source of stability to the domestic markets during periods of heavy portfolio outflows. This in turn has supported stable domestic funding conditions for businesses and households. Active risk management and hedging strategies by banks continued to contain market risk exposures at manageable levels, well within prudent internal loss limits. This in part reflects greater caution observed by banks amid prevailing uncertainties during the first half of 2019. Similarly, insurance and takaful operators also continued to actively manage their investments in line with their liability structures.
Overall household debt level continued to be elevated
The overall household debt level remained elevated at 82.2% of GDP, with loans for the purchase of residential properties continuing to be the key driver of debt growth. Aggregate household financial assets continued to expand at a faster pace than that of debt, sustaining household financial asset buffers at 2.2 times of debt. Although most households continue to be able to comfortably service their debt, pockets of risks remain. Higher incidents of default have been observed among housing loan borrowers that are more exposed to income variability. Although the share of household debt held by borrowers earning less than RM3,000 per month has continued to decline over the years, the leverage of these borrowers has risen steadily largely due to housing loans which have been made more accessible under various loan assistance schemes introduced in recent years. This borrower group remains susceptible to financial distress given their limited financial buffers to weather potential shocks. Risks to financial stability, however, remain largely contained given the low exposures of banks to higher-risk borrowers as banks continued to maintain sound lending practices. The implementation of the National Strategy for Financial Literacy 2019 – 2023 and the proposed enactment of the Consumer Credit Act are expected to further strengthen household resilience and mitigate future risks.
Firm demand sustained for affordable housing
House prices continued to expand at a more moderate pace amid sustained demand for affordable properties. Total unsold units have however risen further, mainly driven by properties priced above the maximum affordable house prices in individual states. This contrasts with a strong recovery in housing transactions for units priced below RM500,000 recorded in the first quarter. While the mismatch between housing supply and demand is likely to take some time to resolve, firm demand for affordable housing is expected to mitigate risks of a sharp and broad-based decline in house prices.
Oversupply conditions in the commercial property market continued to persist
In the non-residential segment, the incoming supply of new office space and shopping complexes (OSSC) remains significantly higher than recent average annual demand. This is likely to further compound already elevated levels of vacancy rates for prime office and retail space, and prime retail space per capita in major cities. Banks remained cautious in lending to this segment, with low exposures that continue to be largely performing. Based on the Bank’s sensitivity analysis, banks have sufficient capital buffers to withstand severe losses under adverse stress scenarios in the broad property market which incorporate potential spillovers to other economic sectors that are highly dependent on the performance of the property sector.
Quality of business borrowings sustained despite more challenging business conditions
The financial position of non-financial corporates (NFCs) weakened slightly during the first half of 2019 amid continued challenging business conditions. The median leverage of NFCs increased marginally to 24.9%, as firms in the telecommunication, aviation and utilities sectors were partly affected by adjustments to new financial reporting standards. Lower earnings were also reported by firms in the plantation, transportation, and building and construction materials sectors. Notwithstanding this, the median debt-servicing capacity of firms has remained healthy at 4.5 times. Some positive developments have been observed in the oil and gas, construction and real estate sectors despite continued headwinds. Firms in the oil and gas sector have continued to pare down their debt, with improvements in earnings from higher asset utilisation rates in the offshore segment. The resumption of major infrastructure projects will also benefit firms in the construction sector, alongside continued healthy order books. While the overall impaired loans ratio of the business sector marginally increased in the first half of 2019, this was mainly on account of developments in a few firms and was not broad-based.
The financial sector remained resilient, underpinned by strong capital and liquidity buffers, and sustained profitability
Liquidity in the banking system remained sufficient to support domestic financial intermediation, with the Liquidity Coverage Ratio of the banking system strengthening further over the past six months. As part of efforts to ensure that banks maintain a stable funding profile, the Net Stable Funding Ratio requirements will come into effect on 1 July 2020. Based on data gathered during the observation period, most banks are well-positioned to meet these requirements. Banks, and insurers and takaful operators also maintained strong capitalisation levels, well above the regulatory minimum and higher than internal target capital levels. This is further underpinned by strong buffers against potential losses in line with more forward-looking financial reporting standards and regulatory requirements. In the insurance sector, regulatory reforms are supporting improvements in persistency and pricing, which in turn will sustain longer-term performance.
Stress tests conducted by the Bank affirm the resilience of the Malaysian financial system to severe macroeconomic and financial strains with financial institutions maintaining capital buffers in excess of regulatory minima even under adverse simulated shocks. Moving forward, the Bank remains vigilant to external and domestic developments which may pose risks to domestic financial stability, including weaker global growth prospects amid increased volatility in capital flows, the elevated level of household debt, soft property market conditions and operational disruptions from increasing cyber-threats.
See also:
Financial Stability Review - First Half 2019 (Publication)
Key Financial Soundness Indicators
Chart datapack for Financial Stability ReviewBank Negara Malaysia
18 September 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
39Financial Stability Review - First Half 2018
Key Financial Soundness Indicators
As at end
2014 2015 2016 2017 1H 2018p
% (or otherwise stated)
Banking System
Total Capital Ratio 15.9 16.6 16.5 17.8 17.0
Tier 1 Capital Ratio 14.0 14.2 14.0 14.9 13.5
Common Equity Tier 1 Capital Ratio 13.3 13.3 13.1 14.0 12.7
Return on Assets 1.5 1.3 1.3 1.5 1.5
Return on Equity 15.2 12.3 12.5 13.0 13.3
Liquidity Coverage Ratio1 - 125.1 124.3 134.9 139.3
Net Impaired Loans Ratio 1.2 1.2 1.2 1.1 1.0
Capital Charge on Interest Rate Risk in the Trading Book to Capital Base 1.4 1.2 1.1 1.0 1.2
Net Open Position in FCY to Capital Base 4.7 6.1 6.3 6.1 5.2
Equity Holdings to Capital Base 1.3 0.7 1.5 1.9 0.7
Insurance and Takaful Sector
Capital Adequacy Ratio 243.5 245.2 243.7 233.0 239.3
Life Insurance and Family Takaful
Excess Income over Outgo (RM billion) 13.8 12.0 13.3 19.0 2.9
New Business Premiums / Contributions (RM billion) 12.9 13.2 14.2 15.1 8.2
Capital Adequacy Ratio2 235.8 242.5 239.1 226.2 230.3
General Insurance and General Takaful
Underwriting Profi t (RM billion) 1.8 1.3 1.8 1.3 0.7
Operating Profi t (RM billion) 3.2 2.7 3.4 2.7 1.3
Gross Direct Premiums / Contributions (RM billion) 19.1 19.5 19.7 19.9 10.5
Claims Ratio 57.5 60.2 55.9 58.6 58.0
Capital Adequacy Ratio3 272.2 258.2 266.2 268.8 263.9
Household (HH) Sector
HH Debt (RM billion) 960.1 1,030.5 1,086.2 1,139.9 1,165.7
HH Financial Asset (RM billion) 2,015.0 2,119.3 2,232.4 2,423.5 2,458.4
HH Debt-to-GDP Ratio 86.8 89.0 88.3 84.2 83.8
HH Financial Asset-to-Total HH Debt Ratio 209.9 205.7 205.5 212.6 210.9
HH Liquid Financial Asset-to-Total HH Debt Ratio 147.5 142.4 140.7 145.2 144.1
Impaired Loans Ratio of HH Sector 1.9 1.6 1.6 1.6 1.6
Business Sector
Return on Assets 6.0 4.9 4.6 4.4 4.54
Return on Equity 10.2 8.8 7.9 7.7 7.64
Debt-to-Equity Ratio 39.2 43.2 43.0 47.0 50.4
Interest Coverage Ratio (times) 12.0 10.6 11.5 9.1 8.24
Operating Margin 15.9 14.8 14.5 15.4 13.94
Impaired Loans Ratio of Business Sector 2.6 2.5 2.5 2.6 2.6
Development Financial Institutions5
Lending to Targeted Sectors (% change) 7.0 5.5 5.7 0.1 -1.9
Deposits Mobilised (% change) 5.3 2.0 6.4 4.8 2.4
Impaired Loans Ratio 5.0 4.8 5.9 5.1 6.0
Return on Assets 1.6 1.4 1.0 1.4 1.2
1 The Basel III Liquidity Coverage Ratio (LCR) Framework takes eff ect on 1 June 2015 and supersedes the guidelines on Liquidity Framework and Liquidity Framework-i issued
on 1 July 1998
2 Figures include composite insurers and takaful operators with larger proportion of life or family business
3 Figures include composite insurers and takaful operators with larger proportion of general business
4 Based on data for the twelve months ending June 2018
5 Refer to development fi nancial institutions under the Development Financial Institutions Act 2002
p Preliminary
Source: Bank Negara Malaysia, Securities Commission Malaysia, Bursa Malaysia, Bloomberg, Department of Statistics, Malaysia and internal computation
Table A.1
Financial Stability Rebiew 2018.indd 39 25/09/2018 6:51 PM
Monthly Highlights
Net financing growth continued to support economic activity
September 2018
1
• Net financing1 grew by 7.0% in September
(August: 7.4%) on account of more moderate
growth in outstanding corporate bonds of
10.8% (August: 13.4%). Outstanding banking
system loans increased by 5.7%
(August: 5.4%).
• Outstanding loan growth for businesses
increased to 4.5% (August: 3.8%) while
households loan growth was sustained at 6.0%
(August: 6.1%).
• Of note, the growth2 of household loan
applications and approvals for the purchase of
passenger cars moderated in September to
6.7% and 32.0%, respectively, post the tax
holiday period3 (August: 27.7% and 52.0%,
respectively).
1 Net financing refers to outstanding loans of the banking system (excluding
development financial institutions (DFIs)), and outstanding corporate bonds.
2 3-month moving average.
3 The 1 June – 31 August 2018 period during which the GST was zerorised
from 6%, and prior to the reinstatement of the Sales and Services Tax (SST)
from 1 September 2018.
5.7
10.8
7.0
0
5
10
15
20
Se
p-
17
O
ct
-1
7
N
ov
-1
7
D
ec
-1
7
Ja
n-
18
Fe
b-
18
M
ar
-1
8
Ap
r-1
8
M
ay
-1
8
Ju
n-
18
Ju
l-1
8
Au
g-
18
Se
p-
18
Banking System Loans
Corporate Bonds
Net Financing
Net Financing through Banking System Loans and Corporate Bonds
%, yoy
9.4
-0.3
-5
5
15
25
35
Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18
Semiconductor E&E (excl. semicons)
Non-E&E Agriculture
Mineral Others
Gross exports (%yoy)
% yoy/ ppt
Export growth declined marginally in August 2018
• Exports registered a marginal contraction
of 0.3% in August 2018 due to
moderation in manufactured exports and
a decline in commodities exports. The
decline in commodities exports was due
partly to supply disruptions in LNG
production.
• Going forward, exports are expected to
turn around to positive growth due to the
pickup in E&E re-exports and the gradual
recovery in commodity exports.
Malaysia’s Exports by Product
July 18
9.4%
Aug 18
-0.3%
Source: Department of Statistics Malaysia (DOSM), MATRADE
Inflation remained low in September
• Headline inflation remained low at 0.3% in
September (August: 0.2%), as the upward
impact from the implementation of the Sales
and Services Tax (SST) was offset by the
lower transport inflation.
• The SST pass-through was more evident for
some taxable services, such as paid television
services and fast food. Other taxable items,
however, experienced limited pass-through
during the month.
• Excluding the impact of the changes in tax
policy, core inflation remained stable at 1.4%
in September (August: 1.4%).*Core inflation is computed by excluding price-volatile and price-administered
items. It also excludes the estimated direct impact of the changes in tax policy
Source: Department of Statistics, Malaysia and staff estimates
Contribution to Inflation
0.0
1.0
2.0
3.0
4.0
5.0
6.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Ju
l-1
7
Au
g-
17
Se
p-
17
O
ct
-1
7
N
ov
-1
7
D
ec
-1
7
Ja
n-
18
Fe
b-
18
M
ar
-1
8
Ap
r-1
8
M
ay
-1
8
Ju
n-
18
Ju
l-1
8
Au
g-
18
Se
p-
18
Others (32.1%) Housing & utilities (23.8%)
Transport (14.6%) Food & non-alcohol (29.5%)
Headline inflation (RHS) Core inflation* (RHS)
ppt contribution
yoy, %
Source: Bank Negara Malaysia
Monthly Highlights
September 2018
2
Financial Markets Performance in September
Source: Bank Negara Malaysia, Bursa Malaysia
Domestic financial markets remained orderly amid portfolio outflows
• The domestic financial markets remained orderly
despite non-resident portfolio outflows in early
September which were due to risk-off sentiments
primarily arising from global trade tensions.
– The ringgit depreciated by 0.8% amid the
non-resident outflows and continued US dollar
strengthening, which was supported by the
positive economic outlook, and stronger
employment and wage data releases from the
US.
– The KLCI declined by 1.5% and the 5-year MGS
yield increased by 5.7 basis points during the
month (August 2018: +2.0% and -6.1 bps
respectively).
2.0
-6.1
-1.1
-1.5
5.7
-0.8
Equity
(% change)
5-year MGS
(bps)
Ringgit
(% change)
-12 -8 -4 0 4 8
Sep-18 Aug-18
0.9
1.5
96.0
60
80
100
120
0.0
1.0
2.0
3.0
4.0
5.0
Ju
n
17
Se
p
17
D
ec
1
7
M
ar
1
8
Ju
n
18
Se
p
18
%
Net Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Loan Loss Coverage Ratio (RHS)
Source: Bank Negara Malaysia
% • In September 2018, the net impaired loans
ratio declined marginally to 0.9% due to
write-offs.
• Banks continued to maintain sufficient buffers
against potential credit losses with loan loss
coverage ratio1 sustained at 96.0% of total
impaired loans (August 2018: 94.4%).
1 Refers to ratio of total provisions to total impaired loans.
Banking System: Asset Quality
Banking system asset quality remains sound
SIARAN AKHBAR
Ref. No.: 10/18/12 EMBARGO: Not for publication or
broadcast before 1500 hours on
Wednesday, 31 October 2018
MONTHLY HIGHLIGHTS – SEPTEMBER 2018
Inflation remained low in September
• Headline inflation remained low at 0.3% in September (August: 0.2%), as the
upward impact from the implementation of the Sales and Services Tax (SST)
was offset by the lower transport inflation.
• The SST pass-through was more evident for some taxable services, such as
paid television services and fast food. Other taxable items, however,
experienced limited pass-through during the month.
• Excluding the impact of the changes in tax policy, core inflation remained
stable at 1.4% in September (August: 1.4%).
Export growth declined marginally in August 2018
• Exports registered a marginal contraction of 0.3% in August 2018 due to
moderation in manufactured exports and a decline in commodities exports.
The decline in commodities exports was due partly to supply disruptions in
LNG production.
• Going forward, exports are expected to turn around to positive growth due to
the pickup in E&E re-exports and the gradual recovery in commodity exports.
Net financing growth continued to support economic activity
• Net financing1 grew by 7.0% in September (August: 7.4%) on account of
more moderate growth in outstanding corporate bonds of 10.8% (August:
13.4%). Outstanding banking system loans increased by 5.7% (August:
5.4%).
1 Net financing refers to outstanding loans of the banking system (excluding development
financial institutions (DFIs)), and outstanding corporate bonds.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
• Outstanding loan growth for businesses increased to 4.5% (August: 3.8%)
while households loan growth was sustained at 6.0% (August: 6.1%).
• Of note, the growth2 of household loan applications and approvals for the
purchase of passenger cars moderated in September to 6.7% and 32.0%,
respectively, post the tax holiday period3 (August: 27.7% and 52.0%,
respectively).
Domestic financial markets remained orderly amid portfolio outflows
• The domestic financial markets remained orderly despite non-resident
portfolio outflows in early September which were due to risk-off sentiments
primarily arising from global trade tensions.
- The ringgit depreciated by 0.8% amid the non-resident outflows and
continued US dollar strengthening, which was supported by the positive
economic outlook, and stronger employment and wage data releases from
the US.
- The KLCI declined by 1.5% and the 5-year MGS yield increased by
5.7 basis points during the month (August 2018: +2.0% and -6.1 bps
respectively).
Banking system asset quality remains sound
• In September 2018, the net impaired loans ratio declined marginally to 0.9%
due to write-offs.
• Banks continued to maintain sufficient buffers against potential credit losses
with loan loss coverage ratio4 sustained at 96.0% of total impaired loans
(August 2018: 94.4%).
Bank Negara Malaysia
31 October 2018
2 3-month moving average
3 The 1 June – 31 August 2018 period during which the GST was zerorised from 6%, and
prior to the reinstatement of the Sales and Services Tax (SST) from 1 September 2018.
4 Refers to ratio of total provisions to total impaired loans.
highlight
Slide Number 1
Slide Number 2
181031 Monthly Highlights September 2018 - EN
MONTHLY HIGHLIGHTS – SEPTEMBER 2018
| Press Release |
12 Sep 2019 | Monetary Policy Statement | https://www.bnm.gov.my/-/monetary-policy-statement-12092019 | null | null |
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12 Sep 2019
At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.00 percent.
The global economy is expanding at a more modest pace amid slower growth in most major advanced and emerging economies. The recent escalation of trade tensions point to weaker global trade going forward, with increasing signs of spillovers to domestic economic activity in a number of countries. Monetary policy easing in several major economies has eased global financial conditions, but uncertainty from the prolonged trade disputes and geopolitical developments could lead to excessive financial market volatility.
For Malaysia, the stronger economic growth performance in the second quarter of 2019 was underpinned by the resilience of private spending amid broad-based expansion in key economic sectors. Going forward, these domestic drivers of growth, alongside stable labour market and wage growth, are expected to remain supportive of economic activity. On the external front, Malaysia’s diversified exports will partly mitigate the impact of softening global demand. Overall, the baseline growth projection for 2019 remains unchanged, within the range of 4.3% - 4.8%. This projection, however, is subject to further downside risks from worsening trade tensions, uncertainties in the global and domestic environment, and extended weakness in commodity-related sectors.
Average headline inflation year-to-date is 0.3%. Headline inflation is projected to average higher for the remaining months of the year and into 2020. However, headline inflation is expected to remain low. This reflects the lapse in the impact of consumption tax policy changes, the relatively subdued outlook on global oil prices, and policy measures in place to contain food prices. The trajectory of headline inflation will, however, be dependent on global oil and commodity price developments. Underlying inflation is expected to remain stable, supported by the continued expansion in economic activity and in the absence of strong demand pressures.
At the current level of the OPR, the stance of monetary policy remains accommodative and supportive of economic activity. The MPC will continue to assess the balance of risks to domestic growth and inflation, to ensure that the monetary policy stance remains conducive to sustainable growth amid price stability.
Bank Negara Malaysia
12 September 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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06 Sep 2019 | International Reserves of Bank Negara Malaysia as at 30 August 2019 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-30-august-2019 | null | null |
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International Reserves of Bank Negara Malaysia as at 30 August 2019
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International Reserves of Bank Negara Malaysia as at 30 August 2019
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6 Sep 2019
The international reserves of Bank Negara Malaysia amounted to USD103.5 billion as at 30 August 2019. The reserves position is sufficient to finance 7.6 months of retained imports and is 1.1 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (30 August 2019)
Bank Negara Malaysia
6 September 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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30 Aug 2019 | Detailed Disclosure of International Reserves as at end-July 2019 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-july-2019 | null | null |
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In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD 103,911.1 million, while other foreign currency assets amounted to USD 216.9 million as at end-July 2019. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from maturity of the foreign currency Bank Negara Interbank Bills, amount to USD 6,892.9 million. The short forward positions amounted to USD 12,838.8 million, while long forward positions amounted to USD 160 million as at end-July 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to USD 2,466.8 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD 336.7 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-July 2019, Malaysia’s reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
30 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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30 Aug 2019 | Monetary and Financial Developments in July 2019 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-july-2019 | https://www.bnm.gov.my/documents/20124/93682/i_en.pdf | null |
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This document is in Portable Document File (PDF) format.
In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
If you already have the software, read the document. [PDF, 225KB]
See also: Monthly Highlights and Statistics July 2019
Bank Negara Malaysia
30 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
a
n
-2
2
F
e
b
-2
2
M
a
r-
2
2
A
p
r-
2
2
M
a
y
-2
2
J
u
n
-2
2
J
u
l-
2
2
A
u
g
-2
2
S
e
p
-2
2
O
c
t-
2
2
N
o
v
-2
2
D
e
c
-2
2
J
a
n
-2
3
F
e
b
-2
3
M
a
r-
2
3
A
p
r-
2
3
M
a
y
-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
29 Aug 2019 | Joint National AML/CFT Conference 2019 | https://www.bnm.gov.my/-/joint-national-aml/cft-conference-2019 | null | null |
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Joint National AML/CFT Conference 2019
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Joint National AML/CFT Conference 2019
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29 Aug 2019
Bank Negara Malaysia and the Malaysian Bar today organised the Joint National AML/CFT Conference 2019 at Sasana Kijang, Kuala Lumpur. Themed “Building Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Compliance Effectiveness: Risks and Challenges”, the conference aims to raise the understanding of vulnerabilities to money laundering and terrorism financing (ML/TF) risks of Designated Non-Financial Businesses and Professions (DNFBP) sectors including the legal sector. The joint conference was also intended to strengthen the compliance culture on AML/CFT requirements among these reporting institutions through discussions on various perspectives of regulatory, supervisory, law enforcement as well as industry.
In his Opening Remarks, Dato’ Abdul Fareed Abdul Gafoor, the Malaysian Bar President highlighted the role of legal professionals in combating ML/TF, noting the existence of vulnerabilities or high risk areas which lawyers are exposed to, as well as the interplay between a lawyer’s obligations under the AML/CFT regime and their professional duties. Dato’ Abdul Fareed also emphasized, “Lawyers therefore play critical role as watchdogs in highlighting and raising the alarm in relation to potential ML/TF schemes. It is our duty to cultivate a culture of awareness, vigilance and caution in order to effectively assess situations which may give rise to such concerns…”
Encik Adnan Zaylani Mohamad Zahid, Assistant Governor of Bank Negara Malaysia, in his Keynote Address, stressed that the resultant impact of a lawyer’s inappropriate conduct when dealing with a client, if left unchecked, may pose reputational risk and loss of confidence, not only to the affected individual lawyer or the associated firm but the legal fraternity as a whole. Encik Adnan further urged the lawyers and DNFBPs to take effective AML/CFT control to protect themselves from being abused by the criminals for ML/TF activities. He also cautioned DNFBP reporting institutions that Bank Negara Malaysia will pursue more deterrent actions, including taking appropriate enforcement actions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) for any non-compliance beginning 2020.
The conference brought together over 450 participants from the legal fraternity and DNFBP sectors and their governing licensing authorities, self-regulatory bodies and associations. Featuring four panel discussions involving 14 eminent panellists, the conference shared insights and experience in implementing the AML/CFT compliance programme and reporting obligations as well as enforcing the AMLA. Participants were able to deepen their understanding on risk-based approach for effective implementation of AML/CFT requirements and best practices from experts and financial institutions’ representatives. Participants also benefited from the law enforcement agencies’ sharing on cases involving abuse of legal and other DNFBP sectors in facilitating ML/TF crimes, indicators and emerging trends.
“Comply to Protect”
Bank Negara Malaysia
29 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
22 Aug 2019 | International Reserves of Bank Negara Malaysia as at 15 August 2019 | https://www.bnm.gov.my/-/reserve-15082019 | null | null |
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International Reserves of Bank Negara Malaysia as at 15 August 2019
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International Reserves of Bank Negara Malaysia as at 15 August 2019
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22 Aug 2019
The international reserves of Bank Negara Malaysia amounted to USD103.1 billion as at 15 August 2019. The reserves position is sufficient to finance 7.6 months of retained imports and is 1.1 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (15 August 2019)
Bank Negara Malaysia
22 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
21 Aug 2019 | Enhancements to Bank Negara Malaysia’s RM1 billion Fund for Affordable Homes | https://www.bnm.gov.my/-/enhancements-to-bank-negara-malaysia-s-rm1-billion-fund-for-affordable-homes | https://www.bnm.gov.my/documents/20124/65309/Home_Features+ENG_attach.pdf | null |
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Enhancements to Bank Negara Malaysia’s RM1 billion Fund for Affordable Homes
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Enhancements to Bank Negara Malaysia’s RM1 billion Fund for Affordable Homes
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21 Aug 2019
Bank Negara Malaysia wishes to announce enhancements to the RM1 billion Fund for Affordable Homes, which aims to help home buyers from the lower income group to finance the purchase of their first homes.
The enhancement, which will take effect on 1 September 2019, involves the expansion of the eligibility criteria, as follows:
Maximum monthly household income is increased to RM4,360; and
Maximum property price is increased to RM300,000.
Members of the public may contact the participating financial institutions for further information:
AmBank (M) Berhad (AmBank) 03-2178 8888
Bank Simpanan Nasional (BSN) 1-300 88 1900
CIMB Bank Berhad (CIMB) 03-6204 7788
Malayan Banking Berhad (Maybank) 1-300 88 6688
RHB Bank Berhad (RHB) 03-9206 8118 (West Malaysia); 082-276118 (East Malaysia)
The public may also contact BNMTELELINK at 1-300-88-5465 (LINK).
Further details on the Fund is provided at www.housingwatch.my.
See also: Key Features of BNM’s Fund for Affordable Homes
Bank Negara Malaysia
21 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights
2.9 2.9 2.8
2.7 2.4 2.4
5.6 5.2 5.2
Jul-19 Aug-19 Sep-19
Corporate Bonds
Banking System Loans
Net Financing
93.0
25.9
59.6
22.5
37.1
Total Household Business SME Non-SME
Sep-19
2014-2018 monthly average
1.4
1.1
-2.0
-1.0
0.0
1.0
2.0
-2.0
-1.0
0.0
1.0
2.0
Ju
l-1
8
Au
g-
18
Se
p-
18
O
ct
-1
8
N
ov
-1
8
D
ec
-1
8
Ja
n-
19
Fe
b-
19
M
ar
-1
9
Ap
r-1
9
M
ay
-1
9
Ju
n-
19
Ju
l-1
9
Au
g-
19
Se
p-
19
Others (32.1%) Housing & utilities (23.8%)
Transport (14.6%) Food & non-alcohol (29.5%)
Headline inflation (RHS) Core inflation (RHS)
September 2019
Overall IPI improved to 1.9% in August 2019
Sustained financing of economic activity
1
Headline inflation declined in September
• Net financing2 growth was sustained at
5.2% in September (August: 5.2%), amid
sustained growth in outstanding corporate
bonds (September, August: 9.0%) and
outstanding loans (September: 3.8%,
August: 3.9%) across the business and
household segments.
• Total loans disbursed by the banking
system moderated to RM99.5 billion
(August: RM101.4 billion), but remained
higher than the historical monthly average of
RM93.0 billion. The moderation from August
was mainly in disbursements to households,
particularly for the purchase of securities
and residential properties.
2 Net financing refers to outstanding loans of the banking system (excluding
development financial institutions (DFIs)), and outstanding corporate bonds.
Source: Bank Negara Malaysia
%, yoy / ppt contribution
Contribution to Net Financing1 Growth and Level of
Banking System Loan Disbursements
RM billion
• Headline inflation declined to 1.1% (August:
1.5%) during the month, reflecting the lapse
in the impact of Sales and Services Tax
(SST) implementation.
• The lapse in the impact of the SST was
evident for food away from home, internet
and broadband charges, and paid television
services.
• Excluding the impact of the changes in the
consumption tax policy, core inflation1 was
relatively stable at 1.4% (August: 1.5%).
1 Core inflation is computed by excluding price-volatile and price-administered items.
It also excludes the estimated direct impact of tax policy changes.
Source: Department of Statistics Malaysia (DOSM), Bank Negara Malaysia estimates
Contribution to Inflation
ppt contribution
1
%, yoy
• The Overall Industrial Production Index (IPI)
recorded a higher growth of 1.9% in August
(July: 1.2%). The manufacturing and
electricity subsectors moderated while the
mining subsector experienced a smaller
contraction.
• The manufacturing sector grew by 3.7% in
August (July: 4.0%) as the closure of gas
facility in Sarawak affected the production of
refined petroleum products.
Contribution to Overall IPI
Source: Department of Statistics, Malaysia (DOSM)
% contribution to growth, ppt
1.2
1.9
-6
-4
-2
0
2
4
6
8
Au
g-
16
O
ct
-1
6
D
ec
-1
6
Fe
b-
17
Ap
r-1
7
Ju
n-
17
Au
g-
17
O
ct
-1
7
D
ec
-1
7
Fe
b-
18
Ap
r-1
8
Ju
n-
18
Au
g-
18
O
ct
-1
8
D
ec
-1
8
Fe
b-
19
Ap
r-1
9
Ju
n-
19
Au
g-
19
Manufacturing Electricity Mining Overall
Monthly Highlights
September 2019
2
Banking system capitalisation remained strong
Performance of domestic financial markets were affected by global developments
• Banking institutions are well-positioned to
withstand severe macroeconomic and
financial shocks, with excess capital buffers3
of approximately RM110 billion as at
September 2019.
Capital Adequacy Ratios
Source: Bank Negara Malaysia
• In September, domestic financial markets
continued to be affected by global
developments and shifts in investor sentiments.
Early in the month, signs of progress in global
trade talks contributed to improved investor
sentiments, leading to broad gains across
financial market indicators.
• However, sentiments deteriorated towards the
end of the month as investors turned cautious
from heightened concerns over the global
growth outlook and a potential escalation in
global trade disputes.
• As a result, the ringgit appreciated by 0.8%
against the US dollar, driven by net portfolio
inflows by non-residents during the month.
Adjustments in domestic bond yields were also
marginal amid sustained demand by non-
resident investors. However, the domestic
equity market continued to be affected by global
uncertainties with the FBM KLCI declining by
1.8% during the month.
Source: Bank Negara Malaysia, Bursa Malaysia
-1.4
-28.5
-2.2
-1.8
4.0
0.8
Equity
(% change)
10-year MGS
(bps)
Ringgit
(% change)
-35 -25 -15 -5 5 15
Sep-19 Aug-19
Financial Markets Performance in September
3 Excess total capital refers to total capital above the regulatory minimum, which
includes the capital conservation buffer requirement and bank-specific higher
minimum requirements
8
10
12
14
16
18
20
O
ct
1
6
M
ar
1
7
Au
g
17
Ja
n
18
Ju
n
18
N
ov
1
8
Ap
r 1
9
Se
p
19
Common Equity Tier 1 Capital Ratio
Tier 1 Capital Ratio
Total Capital Ratio
14.4%
13.8%
17.7%
%
Sep 19
SIARAN AKHBAR
Ref. No.: 10/19/05 EMBARGO: Not for publication or
broadcast before 1500 hours on
Thursday, 31 October 2019
MONTHLY HIGHLIGHTS – SEPTEMBER 2019
Headline inflation declined in September
• Headline inflation declined to 1.1% (August: 1.5%) during the month, reflecting
the lapse in the impact of Sales and Services Tax (SST) implementation.
• The lapse in the impact of the SST was evident for food away from home, internet
and broadband charges, and paid television services.
• Excluding the impact of the changes in the consumption tax policy, core
inflation1was relatively stable at 1.4% (August: 1.5%).
Overall IPI improved to 1.9% in August 2019
• The Overall Industrial Production Index (IPI) recorded a higher growth of 1.9% in
August (July: 1.2%). The manufacturing and electricity subsectors moderated
while the mining subsector experienced a smaller contraction.
• The manufacturing sector grew by 3.7% in August (July: 4.0%) as the closure of
gas facility in Sarawak affected the production of refined petroleum products.
Sustained financing of economic activity
• Net financing2 growth was sustained at 5.2% in September (August: 5.2%), amid
sustained growth in outstanding corporate bonds (September, August: 9.0%) and
outstanding loans (September: 3.8%, August: 3.9%) across the business and
household segments.
• Total loans disbursed by the banking system moderated to RM99.5 billion
(August: RM101.4 billion), but remained higher than the historical monthly
1 Core inflation is computed by excluding price-volatile and price-administered items. It also
excludes the estimated direct impact of tax policy changes.
2 Net financing refers to outstanding loans of the banking system (excluding development
financial institutions (DFIs)), and outstanding corporate bonds.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
average of RM93.0 billion. The moderation from August was mainly in
disbursements to households, particularly for the purchase of securities and
residential properties.
Performance of domestic financial markets were affected by global
developments
• In September, domestic financial markets continued to be affected by global
developments and shifts in investor sentiments. Early in the month, signs of
progress in global trade talks contributed to improved investor sentiments,
leading to broad gains across financial market indicators.
• However, sentiments deteriorated towards the end of the month as investors
turned cautious from heightened concerns over the global growth outlook and a
potential escalation in global trade disputes.
• As a result, the ringgit appreciated by 0.8% against the US dollar, driven by net
portfolio inflows by non-residents during the month. Adjustments in domestic
bond yields were also marginal amid sustained demand by non-resident
investors. However, the domestic equity market continued to be affected by
global uncertainties with the FBM KLCI declining by 1.8% during the month.
Banking system capitalisation remained strong
• Banking institutions are well-positioned to withstand severe macroeconomic and
financial shocks, with excess capital buffers3 of approximately RM110 billion as at
September 2019.
Bank Negara Malaysia
31 October 2019
3 Excess total capital refers to total capital above the regulatory minimum, which includes the
capital conservation buffer requirement and bank-specific higher minimum requirements.
311019 Monthly Highlights September 2019 - EN
Slide Number 1
Slide Number 2
311019 Monthly Highlights September 2019 - ENddd
MONTHLY HIGHLIGHTS – SEPTEMBER 2019
| Press Release |
21 Aug 2019 | Establishment of Khidmat Nasihat Pembiayaan to provide advisory on financing | https://www.bnm.gov.my/-/establishment-of-khidmat-nasihat-pembiayaan-to-provide-advisory-on-financing | null | null |
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Establishment of Khidmat Nasihat Pembiayaan to provide advisory on financing
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Establishment of Khidmat Nasihat Pembiayaan to provide advisory on financing
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0310 on
Wednesday, 21 August 2019
21 Aug 2019
Bank Negara Malaysia (BNM) today announces the establishment of Khidmat Nasihat Pembiayaan (MyKNP). This is a joint collaboration by the Bank, Credit Guarantee Corporation Malaysia Berhad (CGC) and Agensi Kaunseling dan Pengurusan Kredit (AKPK), with the support of the financial industry.
MyKNP is another collective effort by the industry to enhance the financing ecosystem. It aims to improve financing applicants' experience, including providing greater understanding of the factors affecting their financing application as well as help in raising their eligibility for future financing.
Applicants who have been unsuccessful in securing SME financing or home financing can contact MyKNP @ CGC and AKPK respectively, and obtain the following advisory services, free of charge:
Further clarification on the reasons for rejection by financial institutions;
Advice on how to improve eligibility for financing in the future; and
Information on alternative financing (for SMEs) or alternative solutions (for homebuyers)
SMEs may contact CGC for further information:
Call 03-7880 0088 (Operating Hours: 8.30 am – 5.30 pm, Mon – Fri) or email to myknp@cgc.com.my or visit bnm.gov.my/myknp.
Homebuyers may contact AKPK for further information:
Visit and register for appointment at myknp.akpk.org.my or call 03-2616 7799 (Operating Hours: 9.00 am – 5.30 pm, Mon – Fri) or visit bnm.gov.my/myknp.Bank Negara Malaysia
21 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
16 Aug 2019 | Liberalisation Of Foreign Exchange Administration Policies | https://www.bnm.gov.my/-/liberalisation-of-foreign-exchange-administration-policies-1 | null | null |
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Liberalisation Of Foreign Exchange Administration Policies
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Liberalisation Of Foreign Exchange Administration Policies
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1200 on
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16 Aug 2019
Bank Negara Malaysia wishes to announce further liberalisation of the foreign exchange administration (FEA) policy aimed at providing greater flexibility and efficiency for businesses to better manage their foreign exchange (FX) risk and conduct their daily operations.
Hedging flexibility
i. Residents can hedge their foreign currency current account obligations up to their underlying tenure
Flexibility for residents to hedge their foreign currency current account obligations is now extended up to the underlying tenure to promote sound risk management and business efficiency. Residents may obtain approval from the Bank to hedge financial account obligations up to the underlying tenure.
ii. Resident treasury centres can hedge on behalf of their related entities
To facilitate greater efficiency in centralised risk management operations, treasury centres in Malaysia are free to hedge on behalf of their related entities via a licensed onshore bank.
iii. Non-resident treasury centres can hedge on behalf of their related entities upon a one-time registration with Bank Negara Malaysia
Non-resident treasury centres outside Malaysia are free to hedge on behalf of their related entities in Malaysia and overseas via a licensed onshore bank or appointed overseas office (AOO) upon one-time registration with Bank Negara Malaysia.
iv. Non-residents can hedge on anticipatory basis
Flexibility for non-residents to hedge on an anticipatory basis via an AOO for settlement of trade in goods and services.
The exemption of credit facilities for miscellaneous expenses from the definition of domestic ringgit borrowing
i. Revised definition of domestic ringgit borrowing
Credit facilities[1] which are used by corporates for miscellaneous expenses such as sundry and employees’ travel expenses are excluded from domestic ringgit borrowings under applicable FEA policies on investment abroad. This is to facilitate the management of operational expenses by residents without impacting their investment activities.
The above measures will be effective on 30 August 2019. Further details on the above liberalisation will be provided in the Supplementary Notice No. 6 on Foreign Exchange Administration Rules issued by the Bank on the same date.
___________________________________________
[1]Defined as corporate credit card and other facilities of similar form.
Bank Negara Malaysia
16 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
16 Aug 2019 | Economic and Financial Developments in the Malaysian Economy in the Second Quarter of 2019 | https://www.bnm.gov.my/-/economic-and-financial-developments-in-the-malaysian-economy-in-the-second-quarter-of-2019 | https://www.bnm.gov.my/documents/20124/65309/p1SecondQuarterof2019.pdf, https://www.bnm.gov.my/documents/20124/65309/Q2_en.pdf, https://www.bnm.gov.my/documents/20124/65309/2Q2019_GDP_Slides_v2.pdf | null |
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Economic and Financial Developments in the Malaysian Economy in the Second Quarter of 2019
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Economic and Financial Developments in the Malaysian Economy in the Second Quarter of 2019
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16 Aug 2019
This document is in Portable Document File (PDF) format.
In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
If you already have the software, read the document [PDF, 131KB]
See also:
Publication: Quarterly Bulletin
Key Highlights on Economic and Financial Developments in 2Q2019
Presentation Slides [PDF, 665 KB]Bank Negara Malaysia
16 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
untitled
5
BNM QUARTERLY BULLETIN
SECOND QUARTER 2019
1Q 2019 2Q 2019
2 Credit refers to outstanding loans from the banking system and development
financial institutions (DFIs), and outstanding corporate bonds
Note: Real GDP in constant 2015 prices
3 Loan application refers to banking system data only
Key Highlights on
Economic and Financial Developments in 2Q 2019
Credit expansion commensurate with growth in
recent periods
Overall financing in line with economic activity
Demand for financing showed some signs of improvement
Higher GDP growth of 4.9% (1Q: 4.5%) Headline inflation increased
Box Articles
Unresolved trade disputes one year on Enhancing market efficiency to preserve financial
market stability
Development initiatives to enhance:
Two key developments:
Source: Department of Statistics Malaysia, Bank Negara Malaysia unless stated otherwise
For more information, visit www.bnm.gov.my
Higher private sector expenditure
Services and manufacturing sectors
remained the key drivers of growth
Rebound in mining sector driven by
recovery in natural gas production
Continued expansion in domestic demand and across
all economic sectors
Higher headline inflation due to the lapse in the impact
of the GST zerorisation
Headline and Core Inflation1
-0.3
0.6
1.6
1.6
-1
0
1
2
2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019
yoy, %
Headline inflation Core inflation1
1 Core inflation is computed by excluding price-volatile and price-administered items.
It also excludes the estimated direct impact of consumption tax policy changes.
-10
-5
0
5
10
15
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
2Q
2
01
9
yoy, %
Nominal credit Real GDP
Credit and GDP Growth2
-4.3
-10.2
2.3
3.8
3
Households Businesses
Emerging Global Trends
Reconfiguration of global
value chains
Volatile
financial
conditions
Subdued
global
growth
and trade
Trade Tensions
gateway for investment
Dynamic hedging programme
yoy, %
Key Highlights on
Economic and Financial Developments in 2Q 2019
Higher GDP growth of 4.9% (1Q: 4.5%)
Continued expansion in domestic demand and across
all economic sectors
Headline inflation increased
Higher headline inflation due to the lapse in the impact
of the GST zerorisation
Headline and Core Inflation‘
Higher private sector expenditure
Services and manufacturing sectors
remained the key drivers of growth
E:
Rebound in mining sector driven by
recovery in natural gas production
yoy, %
2
1.6
1.6
1
0.6
O -0.3
-1
20 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019
—O— Headline inflation Core inflation‘
1 Core inflation is computed by excluding price—vo|ati|e and price-administered items.
It also excludes the estimated direct impact of consumption tax policy changes.
Overall financing in line with economic activity
Credit expansion commensurate with growth in
recent periods
Credit and GDP Growth2
y0y,%
15
10 'r.‘
‘\ ,' \ . .- _..
5 ~. , ~--..«~~———'«____.x ~—~. ____ __-—— ~~-___.
.
. .
. .
0 . /'
. ’.
-5 “’¢
-10
CO 03 O \— N CV‘) V‘ LO LO l\ 00 O‘:
O O F 1- r r \— w \— r 1- F
O O O O O O O O O O O O
N N N N N N N N N N N N
O
N
Nominal credit ---- Real GDP
2 Credit refers to outstanding loans from the banking system and development
financial institutions (DFls), and outstanding corporate bonds
Note: Real GDP in constant 2015 prices
Demand for financing showed some signs of improvement
Loan Application?’
yoy, %
3.8
2.3
-4.3
-10.2
Households Businesses
I 102019 2o2o19
3Loan application refers to banking system data only
Box Articles
Unresolved trade disputes one year on
Emerging Global Trends
Trade Tensions
Volatile
financial
conditions
Source: Department of Statistics Malaysia, Bank Negara Malaysia unless stated othen/vise
For more information, visit www.bnm.gov.my
Enhancing market efficiency to preserve financial
market stability
Development initiatives to enhance:
- Market liquidity
- Risk management capabilities
- Access to the onshore market
Two key developments:
1T1
Appointed Overseas Office as a
gateway for investment
Dynamic hedging programme
ECONOMIC AND FINANCIAL DEVELOPMENTS IN MALAYSIA IN THE SECOND QUARTER OF 2008
Ref. No.: 08/08/12 EMBARGO: Not for publication or
broadcast before 1800 hours on
Friday, 29 August 2008
PRESS RELEASE
ECONOMIC AND FINANCIAL DEVELOPMENTS IN MALAYSIA IN THE
SECOND QUARTER OF 2008
OVERVIEW
Sustained growth momentum in the Malaysian economy
The Malaysian economy registered a growth of 6.3% (1Q 08: 7.1%) in the
second quarter of 2008. Growth was supported by strong external demand while
domestic demand expanded at a more moderate pace.
Sustained growth in second quarter 2008
(at year 2000 prices)
6.3
0
20
40
60
80
100
120
140
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
RM bil
0
1
2
3
4
5
6
7
8
Annual change
(%)
2005 2006 2007 2008
2
Growth in domestic demand moderated but remained strong at 7.8% in
the second quarter (1Q 08: 10%). Private consumption increased by 9% (1Q 08:
11.7%) in an environment of higher consumer prices and softer consumer
sentiment. Higher expenditure on emoluments, defence, supplies and services
supported the growth in public spending (7.1%, 1Q 08: 10.5%). Investment
activity was sustained at 5.6% (1Q 08: 6%), supported by continued inflow of
foreign direct investment, mainly into the services and manufacturing sectors,
and higher development expenditure by the government. While most investment
indicators suggest continued expansion in capital spending, the higher cost of
investment activities dampened investment spending in real terms.
All key sectors contributed positively to growth, except for mining. The
services sector expanded by 7.6% (1Q 08: 7.9%), led by strong growth in the
wholesale and retail trade, and favourable performance in the communication,
transport and storage; and finance and insurance sub-sectors.
The manufacturing sector registered a 5.6% growth (1Q 08: 7%), led by
domestic-oriented industries, particularly transport equipment, food and
construction-related industries. Export-oriented industries grew at a more
moderate rate due mainly to lower output in the computers and parts and decline
in production of petroleum and chemical industries. Growth in the overall
electronics and electrical (E&E) sector was sustained by external demand for
electrical products and semiconductors. Meanwhile, selected resource-based
industries such as off-estate processing and rubber products continued to lend
support to export-oriented industries.
Growth in the agriculture sector (5.9%, 1Q 08: 6.3%) was underpinned by
double-digit expansion in crude palm oil production. The construction sector grew
at a moderate pace (3.9%, 1Q 08: 5.3%) amidst the rising cost of building
materials. Meanwhile, the mining sector contracted slightly due to lower output of
natural gas.
The headline inflation rate, as measured by the change in the Consumer
Price Index (CPI), rose to 4.8% in the second quarter (1Q 08: 2.6%). The higher
inflation during the quarter reflected the higher retail prices for petrol and diesel
following the subsidy restructuring on 4 June 2008, as well as higher food prices.
Fuel and food prices rose on account of higher global prices for commodities and
energy. Headline inflation is expected to remain at elevated levels from June
2008, before beginning to moderate towards the middle of 2009.
On the external front, the trade balance registered a record surplus of
RM40.8 billion (1Q 08: RM26.8 billion) in the second quarter supported by strong
commodities and resource-based manufacturing exports. Gross exports grew
strongly by 20.8%, due mainly to continued strong growth in agriculture and
mineral exports, benefiting mainly from higher commodity prices. At the same
time, manufacturing exports were higher (+12.3%, 1Q 08: -1.9), underpinned by
higher prices in resource-based products and semiconductors.
Gross imports increased by 9.8% in the second quarter, reflecting stronger
growth in all categories of imports. Intermediate imports increased by 10.2%, in
line with higher manufactured exports. Continued investment activities led to
higher demand for capital imports. Strong growth of 21.1% in consumption
imports reflected mainly continued consumption activities and high prices for
processed food and beverages.
4
In the financial account, gross inflows of foreign direct investment, as
captured by Bank Negara Malaysia’s Cash BOP System, increased to RM12.2
billion (1Q 08: RM7.1 billion). The FDI inflows were mainly directed into the
services, manufacturing, and oil and gas sectors. After adjustment for gross
outflows due mainly to repayments of short-term loans, net FDI increased to
RM8.3 billion (1Q 08: RM2 billion). Overseas investment by Malaysian
companies recorded a net outflow of RM3.5 billion (1Q 08: -RM6.6 billion)
reflecting sustained investments in the manufacturing and services sectors.
Meanwhile, portfolio investment registered a net outflow of RM31.8 billion (1Q
08: +RM1.5 billion) due to net liquidation of both bonds and equities by foreign
investors. During the quarter, investor sentiment in Malaysia and in the Asian
region was affected by concerns over impact of higher energy prices and US
economic slowdown on growth prospects in the region.
The international reserves of Bank Negara Malaysia amounted to
RM410.9 billion (equivalent to USD125.8 billion) as at 30 June 2008. The
reserves amounted to RM403.9 billion (equivalent to USD123.7 billion) as at 15
August 2008. The reserves position is sufficient to finance 9.7 months of retained
imports and is 5 times the short-term external debt.
OPR was left unchanged
The Overnight Policy Rate (OPR) was left unchanged at 3.5% throughout
the second quarter. The Bank is projecting inflation to remain elevated in the
second-half of 2008 and into early next year before moderating towards mid-
2009. The major restructuring of domestic energy prices in June is expected to
have a deflationary effect on the economy in the second half of this year and into
the early part of 2009.
With the OPR unchanged, interbank rates for all maturities were relatively
stable during the quarter. In terms of lending rates, the average base lending
5
rate (BLR) remained unchanged during the quarter, while the average lending
rate (ALR) softened to 6.08% as at end-June. Deposit rates remained relatively
stable during the period.
Financing activity in the second quarter remained strong and supported
domestic economic activity. On a net basis, banking system loans and PDS
outstanding expanded by 14.1% at end-June. Loans outstanding increased by
11.7% at end-June, reflecting increases for both the business and household
sectors, with loans outstanding to these sectors expanding at 14.4% and 8.9%
respectively. Loan applications, approvals and disbursements remained at
relatively high levels, with continued broad-based financing to productive sectors
of the economy.
Net funds raised in the capital market were significantly higher in the
second quarter, amounting to RM27.7 billion. In the private sector, net funds
raised through the PDS market were higher at RM15 billion, while net funds
raised through the equity market amounted to RM1.7 billion. Net funds raised by
the public sector amounted to RM11.0 billion.
M3, or broad money, expanded by RM16.1 billion during the quarter,
increasing at an annual rate of 14.2% at end-June. The increase during the
quarter was mainly due to higher lending to the private sector.
During the second quarter, the ringgit depreciated by 2.4% against the US
dollar. The US dollar strengthened during this period on expectations for a pause
in Fed Funds rate cuts. In addition, higher global fuel and food prices and
prospects of moderation in growth dampened investor sentiments towards the
region, prompting portfolio outflows and affecting the regional currencies,
including the ringgit. The ringgit depreciated against the euro (-2.3%) and the
pound sterling (-2.3%), but appreciated against the Japanese yen (3.8%). The
6
ringgit exhibited a mixed performance against other regional currencies,. During
the period 1 July to 28 August 2008, the ringgit depreciated against the US dollar
(-3.2%) and the Japanese yen (-0.5%), but appreciated against the euro (3.3%)
and pound sterling (5%). The ringgit depreciated against regional currencies in
the range of 1.4% to 4%, with the exception of the Singapore dollar and Korean
won against which the ringgit appreciated by 0.4% and 0.3% respectively.
Banking system remained resilient
The banking system continued to exhibit resilience and is well-positioned
to support the financing and financial services needs of the domestic economy.
As at end-June 2008, the banking system remained well-capitalised with risk-
weighted capital ratio (RWCR) and core capital ratio (CCR) of 13% and 10.1%
respectively. The banking system recorded a pre-tax profit (PBT) of RM5.2 billion
during the quarter, with annualised average returns on assets and equity of 1.7%
and 22% respectively. Meanwhile, net non-performing loans (NPL) based on 3-
month classification declined further by 6.7% to RM17.8 billion to account for
2.7% of total net loans.
Growth going forward
Going forward, the international economic and financial environment is
expected to be more challenging. Global growth is projected to weaken further
with a more protracted slowdown in a number of the developed economies and
some moderation in growth in the emerging economies. While commodity and
energy prices have experienced some correction in response to signs of slower
global growth, prices remain elevated. Meanwhile, the international financial
markets continue to remain fragile.
The domestic economy will be affected by these external developments.
In addition, the impact of rising commodity and fuel prices and costs will continue
to have a deflationary impact on domestic demand, as well as affecting
consumer and business sentiments. Despite signs of moderating growth, the
underlying fundamental strength of the Malaysian economy and the resilient
banking sector provide the potential of the Malaysian economy to resume its
steady growth path.
Bank Negara Malaysia
29 August 2008
ECONOMIC AND FINANCIAL DEVELOPMENTS IN MALAYSIA IN THE SECOND QUARTER OF 2008
OVERVIEW
Sustained growth momentum in the Malaysian economy
OPR was left unchanged
SIARAN AKHBAR
No. Ruj: 08/19/05 EMBARGO: Tidak boleh dicetak
atau disiarkan sebelum pukul 1200
hari Jumaat, 16 Ogos 2019
PERKEMBANGAN EKONOMI DAN KEWANGAN DI MALAYSIA PADA
SUKU KEDUA 2019
Ekonomi Malaysia meningkat 4.9% pada suku kedua 2019
Ekonomi Malaysia mencatatkan pertumbuhan lebih kukuh sebanyak 4.9%
pada suku kedua (S1 2019: 4.5%), disokong oleh perbelanjaan isi rumah dan
pelaburan swasta yang lebih tinggi. Dari segi penawaran, sektor
perlombongan kembali mencatatkan pertumbuhan positif, didorong
terutamanya oleh pemulihan dalam pengeluaran gas asli. Pertumbuhan
sektor perkilangan meningkat sedikit, hasil sokongan prestasi industri
berasaskan pasaran dalam negeri yang lebih baik. Sektor perkhidmatan terus
berkembang berikutan pertumbuhan mampan dalam subsektor perdagangan
borong dan runcit. Berdasarkan pelarasan bermusim suku tahunan, ekonomi
negara meningkat 1.0%.
Pada suku kedua, inflasi keseluruhan secara puratanya adalah lebih tinggi,
terutamanya mencerminkan luputnya kesan Cukai Barangan dan
Perkhidmatan (Goods and Services Tax, GST) pada kadar sifar yang
dilaksanakan pada bulan Jun 2018. Inflasi teras, yang tidak mengambil kira
kesan daripada perubahan dasar cukai penggunaan, tidak berubah pada
1.6%.
Perkembangan kadar pertukaran
Pada suku kedua, ringgit menyusut nilai sebanyak 1.5% berbanding dengan
dolar Amerika Syarikat (AS). Penyusutan ini disebabkan terutamanya oleh
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
aliran keluar portfolio bukan pemastautin berikutan sentimen pelabur yang
masih lagi lembap disebabkan oleh prospek pertumbuhan dunia yang kian
perlahan dan juga berpunca daripada ketegangan perdagangan global yang
semakin meningkat. Kesemua ketidaktentuan ini nyatamasih ketara lantas
terus menjejaskan kesanggupan para pelabur untuk mengambil risiko dalam
pasaran kewangan serantau, termasuk Malaysia. Dalam tempoh 1 Julai
hingga 15 Ogos, nilai ringgit menyusut sebanyak 1.2% berbanding dengan
dolar AS. Sejak awal tahun hingga kini, ringgit telah menyusut nilai sebanyak
1.3% berbanding dengan dolar AS dan trend ini sejajar dengan kebanyakan
mata wang serantau. Pada masa akan datang, gabungan faktor global akan
terus mempengaruhi pergerakan mata wang serantau, termasuk ringgit.
Keadaan pembiayaan
Keadaan pembiayaan secara keseluruhannya konsisten dengan
kadarpertumbuhan ekonomi semasa, dengan permintaan untuk pembiayaan
menunjukkantanda-tanda akan menjadi bertambah baik memandangkan
permohonan pinjaman meningkat pada suku tersebut. Pengeluaran pinjaman
yang berterusan kepada semua segmen ekonomi, termasuk PKS dan untuk
pembelian rumah, terus menyokong kegiatan ekonomi.
Ekonomi Malaysia dijangka kekal pada landasan pertumbuhan yang
stabil pada masa akan datang
Pertumbuhan ekonomi Malaysia dijangka terus disokong oleh aktiviti sektor
swasta. Namun, sektor luaran dijangka terus menerima kesan daripada
pertumbuhan global yang lebih perlahan ekoran ketegangan perdagangan
yang masih berlarutan. Secara keseluruhan, unjuran pertumbuhan asas
(baseline projection) menunjukkan ekonomi Malaysia akan berkembang
antara 4.3% hingga 4.8% pada tahun 2019.
Inflasi keseluruhan dijangka mencatatkan purata yang lebih tinggi pada
separuh kedua 2019 berbanding dengan separuh pertama tahun ini. Hal ini
adalah berikutan luputnya kesan daripada perubahan dasar cukai
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
penggunaan. Inflasi asas diunjurkan kekal stabil, disokong oleh
pengembangan aktiviti ekonomi yang berterusan dan ketiadaan tekanan
permintaan yang besar.
Bank Negara Malaysia
16 Ogos 2019
KDNK Mengikut Komponen Perbelanjaan (pada harga malar tahun 2015)
Bahagian
2018
(%)
2018 2019
S2 ST1 S1 S2 ST1
Pertumbuhan tahunan (%)
Permintaan Dalam Negeri Agregat (tidak termasuk stok)
Sektor Swasta
Penggunaan
Pelaburan
Sektor awam
Penggunaan
Pelaburan
94.1
74.2
57.0
17.3
19.8
12.5
7.4
5.5
7.3
7.9
5.5
-1.6
3.1
-9.9
4.8
6.3
7.2
3.4
-0.9
1.8
-5.4
4.4
5.9
7.6
0.4
-1.4
6.3
-13.2
4.6
6.2
7.8
1.8
-2.8
0.3
-9.0
4.5
6.1
7.7
1.2
-2.1
3.2
-11.3
Eksport Bersih
Eksport Barangan dan Perkhidmatan
Import Barangan dan Perkhidmatan
7.0
67.6
60.6
-6.0
2.6
3.6
22.7
2.5
0.6
10.9
0.1
-1.4
22.9
0.1
-2.1
16.0
0.1
-1.8
KDNK 100.0 4.5 4.9 4.5 4.9 4.7
KDNK (pertumbuhan suku tahunan terlaras secara
bermusim) - 0.6 - 1.1 1.0 -
Sumber: Jabatan Perangkaan Malaysia
Jadual 1
KDNK Mengikut Aktiviti Ekonomi (pada harga malar tahun 2015)
Pertumbuhan tahunan (%)
Bahagian
2018
(%)
2018 2019
S2 ST1 S1 S2 ST1
Perkhidmatan
Perkilangan
Perlombongan
Pertanian
Pembinaan
56.7
22.4
7.6
7.3
4.9
6.5
4.9
-3.4
-1.7
4.8
6.5
5.0
-2.0
0.7
4.9
6.4
4.2
-2.1
5.6
0.3
6.1
4.3
2.9
4.2
0.5
6.3
4.2
0.3
4.9
0.4
KDNK Benar 100.01 4.5 4.9 4.5 4.9 4.7
1 Angka-angka tidak terjumlah disebabkan oleh penggenapan dan pengecualian komponen duti import
Sumber: Jabatan Perangkaan Malaysia
Jadual 2
160819_PR_Economic and financial developments in Malaysia 2Q 2019_BM
2Q2019 GDP - Tables_BM
| Press Release |
07 Aug 2019 | International Reserves of Bank Negara Malaysia as at 31 July 2019 | https://www.bnm.gov.my/-/reserve-31072019 | null | null |
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International Reserves of Bank Negara Malaysia as at 31 July 2019
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International Reserves of Bank Negara Malaysia as at 31 July 2019
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7 Aug 2019
The international reserves of Bank Negara Malaysia amounted to USD103.9 billion as at 31 July 2019. The reserves position is sufficient to finance 7.6 months of retained imports and is 1.2 times total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (31 July 2019)
Bank Negara Malaysia
7 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
01 Aug 2019 | Issuance of Commemorative Coins in conjunction with the Installation of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong XVI | https://www.bnm.gov.my/-/issuance-of-commemorative-coins-in-conjunction-with-the-installation-of-his-majesty-seri-paduka-baginda-yang-di-pertuan-agong-xvi | null | null |
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Issuance of Commemorative Coins in conjunction with the Installation of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong XVI
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Issuance of Commemorative Coins in conjunction with the Installation of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong XVI
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1 Aug 2019
Bank Negara Malaysia is issuing commemorative coins in conjunction with the installation of His Majesty Seri Paduka Baginda XVI Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah Ibni Almarhum Sultan Haji Ahmad Shah Al-Musta’in Billah as the sixteenth Yang di-Pertuan Agong on 30 July 2019.
The commemorative coins were presented to His Majesty on 26 July 2019 by the Governor of Bank Negara Malaysia, Datuk Nor Shamsiah Mohd Yunus, at Istana Negara, Kuala Lumpur.
Specifications of the commemorative coins are as follows:
1. Gold Commemorative Coin (proof)
This proof coin is made of gold with 999.9 purity and weighs 7.96 grams with a face value of RM100 and will be sold at RM1,800 a piece. The mintage quantity is 300 pieces.
2. Silver Commemorative Coin (proof)
This proof coin is made of fine silver with 99.9 purity and weighs 31.1 grams. It has a face value of RM10 and will be sold at RM200 a piece. The mintage quantity is 1,500 pieces.
3. Nordic Gold Brilliant Uncirculated (B.U) Commemorative Coin
The Nordic Gold (B.U.) coin has a face value of RM1 and will be sold at RM12 a piece. The mintage quantity is 20,000 pieces.
One thousand units of sets of two coins priced at RM230 per set are also available comprising one silver proof and one Nordic gold proof coin.
Note: Prices stated above are subjected to SST, except for the gold commemorative coin.
Detailed specifications of the coins are as per Appendix I.
Coin Design
The design of the commemorative coins is as follows:
1. Obverse
The portrait of Seri Paduka Baginda Yang di-Pertuan Agong XVI, His Majesty Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah Ibni Almarhum Sultan Haji Ahmad Shah Al-Musta’in Billah, is featured at the centre of the coin. The words "AL-SULTAN ABDULLAH RI’AYATUDDIN AL-MUSTAFA BILLAH SHAH IBNI ALMARHUM SULTAN HAJI AHMAD SHAH AL-MUSTA’IN BILLAH" are inscribed along the circumference of the coin with the date of the installation depicted at the bottom of the portrait of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong XVI. The decorative element of the 14-cornered umbrella pattern symbolises His Majesty as offering an "umbrella of protection" to 14 states in Malaysia and this is shown around the portrait of Seri Paduka Baginda Yang di-Pertuan Agong.
2. Reverse
The centre of the coin depicts the image of the official royal insignia of His Majesty Seri Paduka Baginda Yang di-Pertuan Agong. The words “PERTABALAN SERI PADUKA BAGINDA YANG DI-PERTUAN AGONG XVI” are inscribed at the upper circumference of the coin, while the name “BANK NEGARA MALAYSIA” as the issuing authority of the commemorative coins is featured on the lower circumference of the coin together with the respective face value of the coin. The face value of the coin is displayed under the official royal insignia, which is '100 RINGGIT' for gold (proof), '10 RINGGIT' for silver (proof) and ‘1 RINGGIT' for Nordic gold. The decorative element of the 14-cornered umbrella pattern is displayed around the coin.
The detailed design of the commemorative coins is illustrated in Appendix II.
Sales
To provide a fair opportunity for members of the public to buy these limited edition coins, each buyer may only purchase a set of two, a gold coin, a silver coin and up to three Nordic Gold coins. The public can place and pay for their orders online from 19 August 2019. In the event of oversubscription, balloting will take place. For further information on ordering, payment and collection of the commemorative coins, please visit the Bank’s website at http://www.bnm.gov.my from 19 August 2019.
Appendix I
Technical Specifications
Category
Metal
Alloy
Face Value (RM)
Diameter
(mm)
Weight
(g)
Mintage Quantity (pcs/ set)
Price
(RM)
Single
Gold
Au999.9
100
22
7.96
300
1,800
Silver
Ag 99.9
10
40.7
31.1
1,500
200
Nordic Gold
Cu89 Zn5 Al5 Sn1
1
30
8.5
20,000
12
Set of 2
Silver and
Nordic Gold
Ag 99.9 and Cu89 Zn5 Al5 Sn1
10 and 1
40.7 and
30
31.1 and
8.5
1,000
230
Note: Prices stated above are subjected to SST, except for the gold commemorative coin.
Appendix II
Bank Negara Malaysia
1 August 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
31 Jul 2019 | Detailed Disclosure of International Reserves as at end-June 2019 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-june-2019 | null | null |
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In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD102,721.7 million, while other foreign currency assets amounted to USD58.5 million as at end-June 2019. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from maturity of the foreign currency Bank Negara Interbank Bills, amount to USD5,807.3 million. The short forward positions amounted to USD14,685.3 million as at end-June 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to USD2,466.0 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD336.2 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-June 2019, Malaysia’s reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
31 July 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
31 Jul 2019 | Monetary and Financial Developments in June 2019 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-june-2019 | https://www.bnm.gov.my/documents/20124/93685/i_en.pdf | null |
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Monetary and Financial Developments in June 2019
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This document is in Portable Document File (PDF) format.
In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
If you already have the software, read the document. [PDF, 225KB]
See also: Monthly Highlights and Statistics June 2019
Bank Negara Malaysia
31 July 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
a
n
-2
2
F
e
b
-2
2
M
a
r-
2
2
A
p
r-
2
2
M
a
y
-2
2
J
u
n
-2
2
J
u
l-
2
2
A
u
g
-2
2
S
e
p
-2
2
O
c
t-
2
2
N
o
v
-2
2
D
e
c
-2
2
J
a
n
-2
3
F
e
b
-2
3
M
a
r-
2
3
A
p
r-
2
3
M
a
y
-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
22 Jul 2019 | International Reserves of Bank Negara Malaysia as at 15 July 2019 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-15-july-2019 | null | null |
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International Reserves of Bank Negara Malaysia as at 15 July 2019
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International Reserves of Bank Negara Malaysia as at 15 July 2019
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22 Jul 2019
The international reserves of Bank Negara Malaysia amounted to USD103.3 billion as at 15 July 2019. The reserves position is sufficient to finance 7.3 months of retained imports and is 1.2 times total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (15 July 2019)
Bank Negara Malaysia
22 July 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
11 Jul 2019 | Engagement with SME Community in Melaka | https://www.bnm.gov.my/-/engagement-with-sme-community-in-melaka | null | null |
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Engagement with SME Community in Melaka
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Engagement with SME Community in Melaka
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11 Jul 2019
Bank Negara Malaysia (BNM) today, held a dialogue session with key representatives from financial institutions, state government and the local business community in Melaka. The dialogue, chaired by Assistant Governor Adnan Zaylani Mohamad Zahid was held in conjunction with Karnival Kewangan Melaka taking place on 13 and 14 July 2019.
At the dialogue, the Melaka business community shared their views on the current conditions. Amongst the issues highlighted by the small and medium enterprises (SME) were the challenging business environment, lack of understanding on financing requirements and availability of financing access for micro enterprises. While acknowledging these, the SME were also advised to research and increase their awareness on the various offerings of different financial institutions that could potentially meet their financing requirements.
Assistant Governor Adnan Zaylani stressed the need for SME to seek advice early from financial institutions and relevant agencies when faced with financial difficulties. Seeking early advice is important to ensure SME have more room to effectively manage their finances.
Bank Negara Malaysia has established a dedicated advisory counter called “Kaunter Informasi PKS” as part of BNM’s effort to provide advice and support for SME. This is an important platform to address SME queries, provide advisory and resolve complaints. “Kaunter Informasi PKS” are available at BNM Laman Informasi Nasihat dan Khidmat Kuala Lumpur and five other BNM offices nationwide.
Additionally, SME should also explore alternative channels or sources of financing which may be more suitable for their businesses. These include financing from peer-to-peer (P2P) and equity crowdfunding platforms.
Small or micro enterprises should formalize or register their businesses with Suruhanjaya Syarikat Malaysia in order to be eligible for the financing schemes including “Tabung BNM untuk PKS” and Islamic financing facilities by Islamic financial institutions.
The dialogue session received positive response from the SME and government agencies in Melaka. Financial institutions were reminded on their responsibilities to provide guidance to the potential SME borrowers. Adequate explanations should be provided on the reasons for financing applications being rejected. This includes advice on how to improve the SME eligibility to obtain financing in the future.
Earlier before the dialogue, Assistant Governor Adnan also held a briefing session with representatives from the various Jawatankuasa Pembangunan dan Penyelarasan Dewan Undangan Negeri Melaka (JAPERUN). Melaka has 28 JAPERUNs representing every state assembly constituency in Melaka. At the briefing, Assistant Governor Adnan provided relevant information on SME financing access and advisory for JAPERUNs to share within their constituencies.
BNM will continue to collaborate with the Melaka state government and the financial industry to extend the reach and depth of financial services to the local community and businesses. Moving forward, BNM will hold similar dialogues to bridge the financial sector and local communities to ensure an efficient and effective ecosystem for SME.
Bank Negara Malaysia
11 July 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
09 Jul 2019 | Monetary Policy Statement | https://www.bnm.gov.my/-/monetary-policy-statement-09072019 | null | null |
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Monetary Policy Statement
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Tuesday, 9 July 2019
9 Jul 2019
At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.00 percent.
The global economy continues to expand moderately. Labour conditions in the advanced economies remain firm, while domestic demand continues to support growth in Asia. Leading indicators, however, point to a softening of the near term global economic outlook, with considerable downside risks remaining primarily from prolonged trade tensions. While the prospects of monetary easing in the major economies have somewhat eased global financial conditions, heightened policy uncertainty could lead to excessive financial market volatility.
The Malaysian economy grew within expectations in the first quarter of the year, supported by both domestic and external factors. Looking ahead, while the external sector performance is likely to be weighed down by slower global growth and trade tensions, economic growth will be supported by domestic demand. Household and capital spending will continue to be driven by stable labour market conditions and capacity expansion in key sectors such as manufacturing and services. The baseline projection remains within the range of 4.3% - 4.8%. This projection, however, is subject to downside risks from ongoing uncertainties in the global and domestic environment, worsening trade tensions and extended weakness in commodity-related sectors.
While headline inflation has remained low in the recent period, it is projected to rise in the coming months as the impact of the changes in consumption tax policy lapses. For 2019 as a whole, average headline inflation is expected to be broadly stable compared to 2018. The trajectory of headline inflation will be dependent on global oil prices and policy measures such as the timing of the lifting of the price ceiling on domestic retail fuel prices. Underlying inflation is expected to remain stable, supported by the continued expansion in economic activity and in the absence of strong demand pressures.
At the current level of the OPR, the stance of monetary policy remains accommodative and supportive of economic activity. The MPC will continue to assess the balance of risks to domestic growth and inflation, to ensure that the monetary policy stance remains conducive to sustainable growth amid price stability.
Bank Negara Malaysia
9 July 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
05 Jul 2019 | International Reserves of Bank Negara Malaysia as at 28 June 2019 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-28-june-2019 | null | null |
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International Reserves of Bank Negara Malaysia as at 28 June 2019
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International Reserves of Bank Negara Malaysia as at 28 June 2019
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5 Jul 2019
The international reserves of Bank Negara Malaysia amounted to USD102.7 billion as at 28 June 2019. The reserves level has taken into account the quarterly adjustment for foreign exchange revaluation changes. The reserves position is sufficient to finance 7.3 months of retained imports and is 1.2 times total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (28 June 2019)
Bank Negara Malaysia
5 July 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
28 Jun 2019 | Detailed Disclosure of International Reserves as at end-May 2019 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-may-2019 | null | null |
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Detailed Disclosure of International Reserves as at end-May 2019
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Detailed Disclosure of International Reserves as at end-May 2019
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28 Jun 2019
In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD102,287.3 million, while other foreign currency assets amounted to USD57.9 million as at end-May 2019. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from maturity of the foreign currency Bank Negara Interbank Bills, amount to USD5,965.4 million. The short forward positions amounted to USD15,737.0 million as at end-May 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to USD2,434.9 million in the next 12 months.As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD350.9 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-May 2019, Malaysia’s reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
28 June 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
28 Jun 2019 | Monetary and Financial Developments in May 2019 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-may-2019 | https://www.bnm.gov.my/documents/20124/93688/i_en.pdf | null |
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Monetary and Financial Developments in May 2019
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Monetary and Financial Developments in May 2019
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This document is in Portable Document File (PDF) format.
In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
If you already have the software, read the document. [PDF, 225KB]
See also: Monthly Highlights and Statistics May 2019
Bank Negara Malaysia
28 June 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
a
n
-2
2
F
e
b
-2
2
M
a
r-
2
2
A
p
r-
2
2
M
a
y
-2
2
J
u
n
-2
2
J
u
l-
2
2
A
u
g
-2
2
S
e
p
-2
2
O
c
t-
2
2
N
o
v
-2
2
D
e
c
-2
2
J
a
n
-2
3
F
e
b
-2
3
M
a
r-
2
3
A
p
r-
2
3
M
a
y
-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
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p
2
2
O
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t
2
2
N
o
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2
2
D
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2
2
J
a
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2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
21 Jun 2019 | International Reserves of Bank Negara Malaysia as at 14 June 2019 | https://www.bnm.gov.my/-/reserve-14062019 | null | null |
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International Reserves of Bank Negara Malaysia as at 14 June 2019
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International Reserves of Bank Negara Malaysia as at 14 June 2019
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The international reserves of Bank Negara Malaysia amounted to USD102.6 billion as at 14 June 2019. The reserves position is sufficient to finance 7.2 months of retained imports and is 1.1 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (14 June 2019)
Bank Negara Malaysia
21 June 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
18 Jun 2019 | Appointment of New Assistant Governor of Bank Negara Malaysia | https://www.bnm.gov.my/-/appointment-of-new-assistant-governor-of-bank-negara-malaysia-1 | null | null |
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18 Jun 2019
Bank Negara Malaysia wishes to announce the appointment of Encik Aznan Abdul Aziz as Assistant Governor effective 1 July 2019.
Encik Aznan will be responsible for the Payments Oversight, Financial Conglomerates Supervision, Banking Supervision, Insurance and Takaful Supervision as well as Risk Specialist and Technology Supervision Departments.
Prior to his appointment, Encik Aznan served in several departments in the Bank including Financial Conglomerates Supervision, Governor’s Office, Islamic Banking and Takaful, Financial Surveillance, Financial Sector Development, Financial Intelligence and Bank Regulation Departments. He holds a degree in Economics and Accounting from the University of Bristol, United Kingdom.
Bank Negara Malaysia
18 June 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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11 Jun 2019 | International Reserves of Bank Negara Malaysia as at 31 May 2019 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-31-may-2019 | null | null |
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International Reserves of Bank Negara Malaysia as at 31 May 2019
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International Reserves of Bank Negara Malaysia as at 31 May 2019
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11 Jun 2019
The international reserves of Bank Negara Malaysia amounted to USD102.3 billion as at 31 May 2019. The reserves position is sufficient to finance 7.3 months of retained imports and is 1.1 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (31 May 2019)
Bank Negara Malaysia
11 June 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
31 May 2019 | Detailed Disclosure of International Reserves as at end-April 2019 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-april-2019 | null | null |
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Detailed Disclosure of International Reserves as at end-April 2019
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Detailed Disclosure of International Reserves as at end-April 2019
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31 May 2019
In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD103,407.2 million, while other foreign currency assets amounted to USD256.8 million as at end-April 2019. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from maturity of the foreign currency Bank Negara Interbank Bills, amounted to USD5,475.2 million. The short forward positions amounted to USD14,297.0 million while long forward positions amounted to USD200 million as at end-April 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to USD2,506.6 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD350.9 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-April 2019, Malaysia’s reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
31 May 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
31 May 2019 | Monetary and Financial Developments in April 2019 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-april-2019 | https://www.bnm.gov.my/documents/20124/93691/i_en.pdf | null |
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Monetary and Financial Developments in April 2019
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Monetary and Financial Developments in April 2019
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See also: Monthly Highlights and Statistics April 2019
Bank Negara Malaysia
31 May 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
a
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-2
2
F
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-2
2
M
a
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2
2
A
p
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2
2
M
a
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-2
2
J
u
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-2
2
J
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2
2
A
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-2
2
S
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-2
2
O
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2
2
N
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-2
2
D
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-2
2
J
a
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-2
3
F
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-2
3
M
a
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2
3
A
p
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2
3
M
a
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-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
a
y
2
2
J
u
n
2
2
J
u
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2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
a
y
2
2
J
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2
2
J
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2
2
A
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2
2
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2
2
O
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2
2
N
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2
2
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2
2
J
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3
F
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2
3
M
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2
3
A
p
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2
3
M
a
y
2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
29 May 2019 | Malaysia’s Inclusion in the US Treasury’s Monitoring List of Potential Currency Manipulator | https://www.bnm.gov.my/-/malaysia-s-inclusion-in-the-us-treasury-s-monitoring-list-of-potential-currency-manipulator | null | null |
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This is with reference to the inclusion of Malaysia in the “Monitoring List” of the Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US, May 2019 Edition, published by the US Department of Treasury Office of International Affairs.
Malaysia supports free and fair trade, and does not practise unfair currency practices. Malaysia adopts a floating exchange rate regime. The ringgit exchange rate is market-determined and is not relied upon for exports competitiveness. As acknowledged by the report, Bank Negara Malaysia’s (BNM) intervention over the last few years has been in both directions of the foreign exchange market. Any intervention is limited to ensuring an orderly market and avoiding excessive volatility of the exchange rate that may affect macroeconomic stability. The fact that the ringgit has over the years faced multiple episodes of significant appreciation and depreciation points to the flexibility of the exchange rate.
As a small and highly open economy, Malaysia’s current account of the balance of payments is affected by both internal and external developments, including cyclical and structural factors. About half of Malaysia’s trade surplus is driven by commodity exports, which is largely influenced by global demand and supply, as opposed to the exchange rate. Manufactured goods surplus, on the other hand, is partly driven by the long-standing presence of large export-oriented multinational corporations in Malaysia, including from the US. The current account surplus is thus a reflection of the diversified nature of the Malaysian economy.
There are no consequences for the Malaysian economy from Malaysia’s inclusion in the Monitoring List. The Malaysian economy remains resilient, underpinned by strong economic fundamentals, including the flexibility accorded by a floating exchange rate and strong external balance.
Bank Negara Malaysia
29 May 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
24 May 2019 | International Reserves of Bank Negara Malaysia as at 15 May 2019 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-15-may-2019 | null | null |
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International Reserves of Bank Negara Malaysia as at 15 May 2019
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International Reserves of Bank Negara Malaysia as at 15 May 2019
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24 May 2019
The international reserves of Bank Negara Malaysia amounted to USD102.8 billion as at 15 May 2019. The reserves position is sufficient to finance 7.4 months of retained imports and is 1.1 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (15 May 2019)
Bank Negara Malaysia
24 May 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
16 May 2019 | Economic and Financial Developments in the Malaysian Economy in the First Quarter of 2019 | https://www.bnm.gov.my/-/economic-and-financial-developments-in-the-malaysian-economy-in-the-first-quarter-of-2019 | https://www.bnm.gov.my/documents/20124/65309/1Q2019_GDPSlides.pdf, https://www.bnm.gov.my/documents/20124/65309/p1FirstQuarterof2019.pdf, https://www.bnm.gov.my/documents/20124/65309/Q1_en.pdf | null |
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Economic and Financial Developments in the Malaysian Economy in the First Quarter of 2019
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Economic and Financial Developments in the Malaysian Economy in the First Quarter of 2019
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Publication: Quarterly Bulletin
Key Highlights on Economic and Financial Developments in 1Q2019
Presentation Slides [PDF, 491KB]Bank Negara Malaysia
16 May 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Prestasi Ekonomi Suku Pertama Tahun 2019
Gabenor
Bank Negara Malaysia
16 Mei 2019
Sidang Akhbar
2
Sidang akhbar akan meliputi
Prestasi ekonomi pada suku pertama 2019
Perkembangan monetari dan kewangan
Most economies recorded sustained or lower GDP growth in 1Q 2019
3
Advanced Economies Regional Economies
GDP, Annual change (%) GDP, Annual change (%)
4Q18 1Q19
Lower export performance
• Sustained growth in PR China due to policy support
• Export growth in most regional economies recorded contractions,
weighed by weaker global demand
Slower domestic demand
• Slowing investments in the US, offset by
temporary support from weak imports
and inventory buildup
• Country-specific weaknesses in the
euro area
4Q18 1Q19
Source: National authorities, IMF, Haver
3.2
1.8
1.2
6.4
5.6
5.1
4.5
1.8 1.7
1.3
US UK Euro area PR China Philippines Indonesia Malaysia Korea C. Taipei Singapore
The Malaysian economy grew by 4.5% during the quarter
4
Growth supported by both external and domestic factors
• Normalisation in household spending
post-tax holiday period
• Weak investment activity
• Decline in oil and natural gas output
due to unplanned shutdown of
production facilities
• Recovery in agriculture sectors, in
particular, crude palm oil production
• High net exports
Annual change, %
4.7
4.5
3
4
5
6
7
1Q-17 3Q-17 1Q-18 3Q-18 1Q-19
‘11 – ’18 average: 5.2%
Real GDP Growth
Source: Department of Statistics, Malaysia
0.23
-0.12
-0.06
0.00
0.40
-0.3
0.0
0.3
0.6
1Q-18 2Q-18 3Q-18 4Q-18 1Q-19
Recovery in the agriculture sector supported growth during the quarter
5
Source: Department of Statistics, Malaysia
Ppt contribution to headline GDP
…driven by significant improvements mainly in
CPO and natural rubber production
The agriculture sector rebounded from the
supply disruption last year…
Agriculture: Contribution to GDP growth
-2.7
9.8
Oil Palm Value Added (% yoy)
4Q-18 1Q-19
Rubber Value Added (% yoy)
4Q-18 1Q-19
-17.6
12.0
-2
0
2
4
6
1Q-18 2Q-18 3Q-18 4Q-18 1Q-19
Agriculture Mining
Construction Manufacturing
Services GDP Growth
The services and manufacturing sectors remained the key drivers
of growth
6
Source: Department of Statistics, Malaysia
Annual change, % /
Ppt contribution to GDP
Agriculture: Rebound in growth
• Strong improvement in palm oil and rubber
production from the impact of adverse weather last
year
Services
• Supported by the wholesale and retail trade
subsector amid firm household spending
Continued expansion in the services and manufacturing sectors
4.75.3 4.5 4.4
Quarterly GDP growth
4.5
Manufacturing
• Recovery in domestic production of palm-oil based
products.
• Slower growth in the E&E subsector amid weaker
global demand
Continued expansion in private sector expenditure amid support from the external sector
Source: Department of Statistics, Malaysia
Private sector spending was the key growth driver
Private sector expenditure
• Resilient household spending amid stable
labour market conditions
Net exports
• Lower exports amid weaker external demand
offset by contraction in imports
Annual change, % /
Ppt contribution to GDP
Quarterly GDP growth
Public investment
• Contraction in public investment due mainly
to completion of large projects
-4
-2
0
2
4
6
8
1Q-18 2Q-18 3Q-18 4Q-18 1Q-19
Public consumption Change in stocks
Private consumption Private investment
Public investment Net exports
GDP growth
5.3 4.5 4.4 4.7 4.5
7
Private consumption growth normalised, but remained firm
8
* Private sector wages were derived from the salaries and wages data published in the Monthly Manufacturing Statistics
and Quarterly Services Statistics by the Department of Statistics, Malaysia. They cover 63.5% of total employment.
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Household expenditure moderated towards the long-term trend,
supported by continued income and employment growth
Annual change, %
8.4
7.6
3
4
5
6
7
8
9
10
1Q-17 3Q-17 1Q-18 3Q-18 1Q-19
‘11 – ’18 average: 7.0%
Going forward, consumer
spending is likely to
moderate but remain firm
5.9
4.9
1
4
7
1Q-17 3Q-17 1Q-18 3Q-18 1Q-19
Real Private Consumption Growth
Annual change, %
Nominal Private Sector Wage Growth*
2.4
2.2
1
2
3
1Q 17 3Q 17 1Q 18 3Q 18 1Q 19
Annual change, %
Total Employment Growth
Favourable labour
market conditions
Supportive Government
policies
Absence of one-off
factors (e.g. tax holiday)
Weak private investment growth
9
5.8
0.4
-2
2
6
10
14
1Q-17 3Q-17 1Q-18 3Q-18 1Q-19
Source: Department of Statistics, Malaysia, RAM and MIER
‘11 – ’18 average: 9.8%
Annual change, %
RAM Business Confidence Index
(Corporates)
Slower private investment growth amid moderating
business sentiment
Real Private Investment Growth
Going forward, investment
activity to be supported by:
Implementation of
ongoing multi-year
projects
Optimism threshold = 50 points
56.8
55.7
55.1
53.5
3Q 18 4Q 18 1Q 19 2Q 19
MIER Business Confidence Index
116.3 108.8
95.3 94.3
2Q 18 3Q 18 4Q 18 1Q 19
Optimism threshold = 100 points
Capacity expansion
in the manufacturing
and services sectors
Weaker external demand affecting export and import growth
10
Broad-based moderation in
exports and imports
RM billion
34.8
36.9
10
15
20
25
30
35
40
1Q-17 3Q-17 1Q-18 3Q-18 1Q-19
‘11 – ’18 average: 24.1
Source: Department of Statistics, Malaysia
Going forward, exports will be
supported by
8.1
-0.7
-10
0
10
20
30
1Q-17 3Q-17 1Q-18 3Q-18 1Q-19
Trade Balance
Trade balance widened as the
moderation in imports
outpaced exports
Annual change, %
Export Growth
5.7
-2.5
-20
0
20
40
1Q-17 3Q-17 1Q-18 3Q-18 1Q-19
Annual change, %
Import Growth
Continued, albeit
moderate demand from
major trade partners
Global demand for
growing niche product
segments (e.g.
Automotive, medical)
Continued recovery in
commodity production
11
Current account of the balance of payments registered a surplus of
RM16.4 billion (equivalent to 4.7% of GNI)
0.8 0.9
3.0
4.7
-6
-4
-2
0
2
4
6
8
-30
-20
-10
0
10
20
30
40
4Q-17 1Q-18 2Q-18 3Q-18 4Q-18 1Q-19
% of GNIRM billion
Secondary Income
Primary Income
Services
Goods
Current Account Balance, % of GNI (RHS)
Current account to remain in surplus
Continued goods surplus
• Demand from key trade
partners to expand, albeit
more moderately
Services and income accounts
to remain in deficit
• Reliance on foreign service
providers
• Sizeable income accrued to
foreign investors
Source: Department of Statistics, Malaysia
Current account surplus widened
Current account balance
FDI flows amounted to RM21.7 billion in 1Q 2019, and remained
broad-based across sectors
12
Note: Figures may not add up due to netting off and rounding
Sources: Department of Statistics, Malaysia and Bank Negara Malaysia
• FDI improved in 1Q 2019 (RM21.7 billion;
4Q 2018: RM12.9 billion)
• Inflows were broad-based, mainly
channeled into the services and
manufacturing sectors
• Advanced economies including Japan,
Austria and Hong Kong SAR were the
largest contributors of FDI
1Q 2019 FDI channeled mainly into the
services and manufacturing sectors
Foreign Direct Investment in Malaysia
RM billion
11.2
4.3 4.3
12.9
21.7
-5
0
5
10
15
20
25
1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019
Agriculture Mining
Manufacturing Construction
Financial Services Non-financial Services
Total
Monetary and Financial Developments
13
Headline inflation increased to 0.2% in March 2019
14
1Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the estimated direct impact of consumption tax policy changes.
2Others include price-volatile items and other price-administered items
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Annual change, % /
Ppt contribution to inflation
0.2
1.6
-2.0
-1.0
0.0
1.0
2.0
3.0
J
a
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-1
8
F
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-1
8
M
a
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1
8
A
p
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1
8
M
a
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-1
8
J
u
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-1
8
J
u
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1
8
A
u
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-1
8
S
e
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-1
8
O
c
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1
8
N
o
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-1
8
D
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-1
8
J
a
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-1
9
F
e
b
-1
9
M
a
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1
9
Core inflation¹(ppt)
Fuel (ppt)
Net impact of consumption tax policy changes (ppt)
Others² (ppt)
Headline inflation (%)
Core inflation¹ (%)
Contribution to Headline Inflation by Component
• The increase reflected the higher
global oil price which led to an
increase in domestic fuel prices
• In 2019, average headline
inflation is expected to be broadly
stable compared to 2018
1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019
1.8 1.3 0.5 0.3 -0.3Headline inflation
Annual change, %
While the ringgit appreciated against the US dollar in the first quarter,
external factors have weighed on the ringgit since April
15
Ringgit movements in 2019 have been driven
mainly by external factors
4.05
4.06
4.07
4.08
4.09
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
2
-J
a
n
-1
9
1
2
-J
a
n
-1
9
2
2
-J
a
n
-1
9
1
-F
e
b
-1
9
1
1
-F
e
b
-1
9
2
1
-F
e
b
-1
9
3
-M
a
r-
1
9
1
3
-M
a
r-
1
9
2
3
-M
a
r-
1
9
2
-A
p
r-
1
9
1
2
-A
p
r-
1
9
2
2
-A
p
r-
1
9
2
-M
a
y
-1
9
1
2
-M
a
y
-1
9
Fed adopted
more dovish
stance in its policy
statement
Fed dot plot reveals
no rate hike in 2019
FTSE Russell
reviews
Malaysia’s
position in WGBI
IMF revised global
growth downward
US postponed planned
China tariff hike indefinitely
Chairman Powell
commented on Fed
willingness to pause
interest rate hikes ↑ Appreciation
Tariff hike on US
imports from PR
China
Going forward, ringgit along with regional
currencies will continue to be influenced
by external factors
Source: Bank Negara Malaysia
Norway’s sovereign
wealth fund plan to
drop EM bonds
from its portfolio
Movement of Ringgit and Global Developments
MYR/USD
Performance of Selected Regional Currencies
Against USD
-4.2
-0.8
0.6
-0.9
-1.8
-2.1
-1.5
-2.2
1.1
-2.1
-0.9
-0.2
0.7
1.0
1.4
1.6
2.3
2.4
-6 -4 -2 0 2 4
KRW
TWD
PHP
SGD
INR
MYR
IDR
CNY
THB
1Q 2019 1 April - 14 May 2019
Source: Bank Negara Malaysia
Non-resident recorded inflows into Malaysian government bonds
in 1Q 2019
16
Net inflow of portfolio investments driven
mainly by non-residents, as yields
remained attractive
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
RM billion
Residents
Non-residents
Net portfolio
investment
40.3%
29.2%
18.5%
9.2%
1.6% 1.2%
0
20
40
60
80
Asset
Mgmt.
Central
Banks/
Govts.
Pension
Funds
Banks Insurance
Companies
Others
RM billion
Portfolio Investments (Balance of Payments)
Distribution of Non-resident Holdings of Government
Bonds as at end-Mar 2019
-50
-40
-30
-20
-10
0
10
20
30
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2017 2018 2019
NR holdings of Malaysian Govt. bonds stood at
21.9% at end-April 2019 (1Q 2019: 22.8%) with
long-term investors as key holders
21.9%
0%
10%
20%
30%
0
100
200
300
D
ec
-1
5
A
p
r-
1
6
A
u
g-
1
6
D
ec
-1
6
A
p
r-
1
7
A
u
g-
1
7
D
ec
-1
7
A
p
r-
1
8
A
u
g-
1
8
D
ec
-1
8
A
p
r-
1
9
NR holdings of Govt Bond (LHS)
% NR of Govt (RHS)29.8%
RM billion % NR
Holding
Non-resident Holdings of Malaysian Government Bonds
Development initiatives to enhance market accessibility and liquidity
17
Greater flexibility to manage
FX risks
Enhancement to the MGS futures
market
Expand participation in dynamic
hedging programme
Enhance
market
access and
liquidity
Increase repo market liquidity
and flexibility
Simplified FX trade and
documentation process
Improve Ringgit liquidity beyond
local trading hours
1
2
3
4
5
6
• Increase in onshore FX market volume
from a current daily average volume of
USD12.2 billion.
• Greater participation in the dynamic
hedging programme which currently
has 88 registered investors managing a
total of USD30.8 billion in assets.
• Deep and liquid secondary bond
market which currently records an
average daily trading volume of RM5.4
billion.
…which aims at improving market
flexibility, accessibility and liquidity
New initiatives to deepen Malaysia’s
financial market…
18
Financial institutions are well-capitalised, with sufficient liquidity to support intermediation
Stress tests conducted by the Bank affirm financial institutions’ resilience to withstand severe
shocks under adverse macroeconomic and financial conditions
Source: Bank Negara Malaysia
RM billion LCR (%)
Total Capital Ratio Capital Adequacy
(%) Ratio (%)
Liquidity Coverage Ratio (LCR) and
Total Outstanding Surplus Liquidity
Domestic financial stability continues to be supported by resilient
financial institutions
1Q 20194Q 2018
Insurance/ Takaful SectorBanking System
244.5
229.7
17.4
18.0
186.5
143.0
0
50
100
150
0
100
200
300
1
Q
-1
7
2
Q
-1
7
3
Q
-1
7
4
Q
-1
7
1
Q
-1
8
2
Q
-1
8
3
Q
-1
8
4
Q
-1
8
1
Q
-1
9
Ringgit surplus liquidity placed with BNM (incl. SRR)
Liquidity Coverage Ratio (RHS)
Continued access to financing to support economic activity
19
78.5 76.2
Business loan applications
Slower loan growth mainly in the business segment reflecting lower domestic demand, but loans in
the WRRH* and manufacturing sectors recorded higher growth
Annual change, % Annual change, % / Cont. to growth, ppt
5.0
8.3
7.5
3.3
4.5
5.2
7.1
6.8
4.6
5.1
1.7
1.0
1.3
1.4
1.2
1.4
0.8
0.2
0.2
-0.5-0.7
-0.3
4.6
3.3
4Q 2018 1Q 2019
Others Real estate
Finance Manufacturing
WRRH Construction
Total Loan Growth
4Q 18 1Q 19
1Q 19
4Q 18
Business
Household
Outstanding Loan Growth** Outstanding Business Loan Growth
Source: Bank Negara Malaysia
Total
Loans
1Q 19
4Q 18
* WRRH – wholesale and retail trade, hotels and restaurants ** Refers to data from banking system and DFIs
*** Refers to data from banking system
1Q 19
4Q 18
1Q 19
4Q 18
1Q 19
4Q 18
WRRH
Manufacturing
Level of Business Loans Applications***
1Q 194Q 18
Business Loan Application
RM billion
2014 – 2018 Quarterly
Average: RM86.0 bn
Domestic
demand
(annual
change)
1Q 2019:
4.4%
4Q 2018:
5.7%
Reduction in policy rate ensures monetary policy stance remains
supportive of sustainable growth and price stability
20
• Overnight Policy Rate reduced by 25
basis points in May 2019
• The OPR reduction will preserve the
degree of monetary accommodativeness
Source: Bank Negara Malaysia
%
Overnight Policy Rate
2.0
2.5
3.0
3.5
4.0
2011 2012 2013 2014 2015 2016 2017 2018 2019
MPC reduced the Overnight Policy Rate
by 25 basis points to 3.00% in May 2019
External debt edged lower and continues to remain manageable
21
1 Changes in individual debt instruments exclude exchange rate revaluation effects
2 Comprise trade credits, IMF allocation of SDRs and other debt liabilities
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
External debt declined further
to RM903.7 billion (59.5% of GDP)
External debt is mostly long-term, while
currency exposure is manageable
Medium- to long-term
59%
Ringgit-
denominated debt
33%
Foreign currency-
denominated debt
67%
Changes in External Debt1
1Q 2019: -RM21.2 billion
Short-term
41%
Malaysia’s External Debt by Maturity
and Currency
-25.4
-8.8
-3.9 -2.5
-0.4
6.0 6.6 7.2
Interbank
borrowings
ER
val.
effects
NR
deposits
Others² Loans Inter-
company
loans
NR
holdings
of dom.
debt
securities
Bond &
notes
RM billion
Risks to the outlook remain tilted to the downside, mainly emanating
from external factors
22
6.0
5.1
4.4
5.7
4.7
4.8
4.3
3.5
4.5
5.5
6.5
2014 2015 2016 2017 2018p 2019f
2019
Some Upside Risks
High Downside Risks
• Sharper moderation in global demand
• Escalation of trade tensions
• Disruption in global financial markets
• Extended weakness in commodity-related
sectors
• Resilient private sector spending
• Receding supply disruption amid
capacity expansions
• Continued demand from major trade
partners
• Higher disposable income from lower inflation
• Positive outcomes from trade negotiations
Annual GDP Growth
Annual Change (%)
Sources: Department of Statistics, Malaysia and Bank Negara Malaysia
Baseline
Malaysia to remain on a steady growth path
23
Cyclical policies
Structural policies
• Monetary policy well-calibrated to provide support to growth
• Timely and prudent fiscal spending to ensure effectiveness and discipline
• Greater clarity on public projects to benefit the economy
• Preemptively tackle existing weaknesses (i.e. elevated debt levels, cost of living, overhang in
the property market)
• Address long-standing issues (i.e. education, upskilling, social safety net, investment quality)
• Institutional and governance reforms
Q & A
24
Q&A
BANK NEGARA MALAYSIA 24 JABATAN PERANGKAAN MALAYSIA
CENTRAL BANK OF MALAYSIA '.,w‘h DEPARTMENT OF STATISTICS MALAYSIA
,n
-......m.«
Additional Information
25
The Malaysian economy grew by 4.5% in the first quarter
26
Source: Department of Statistics, Malaysia Note: 1 Numbers do not add up due to rounding and exclusion of import duties
component
Source: Department of Statistics, Malaysia
Real GDP
(Annual change, %)
Share, %
(2018)
2018 2019
1Q 4Q 1Q
Domestic demand
(excluding stocks)
94.1 4.1 5.7 4.4
Private Sector 74.2 5.2 7.8 5.9
Consumption 57.0 6.6 8.4 7.6
Investment 17.3 1.1 5.8 0.4
Public Sector 19.8 -0.3 0.0 -1.4
Consumption 12.5 0.4 4.0 6.3
Investment 7.4 -1.3 -5.9 -13.2
Net exports of goods
and services
7.0 58.0 15.5 10.9
Exports 67.6 2.4 3.1 0.1
Imports 60.6 -2.3 1.8 -1.4
Change in stocks
(RM billion)
-1.1 -3.3 -2.0 -5.1
GDP (y-o-y) 100 5.3 4.7 4.5
GDP (q-o-q growth,
seasonally adjusted)
- 1.3 1.3 1.1
Real GDP
(Annual change, %)
Share1, %
(2018)
2018 2019
1Q 4Q 1Q
Services 56.7 6.5 6.9 6.4
Manufacturing 22.4 5.2 4.7 4.2
Mining and
Quarrying
7.6 -0.6 -0.7 -2.1
Agriculture 7.3 3.1 -0.1 5.6
Construction 4.9 4.9 2.6 0.3
Real GDP 100.0 5.3 4.7 4.5
Annual growth of GDP components
Add. Info
1
The Malaysian economy grew by 4.5% in the first quarter
27
Note: Numbers do not add up due to rounding
Source: Department of Statistics, Malaysia
Source: Department of Statistics, Malaysia
Real GDP
(Contribution, ppt)
Share, %
(2018)
2018 2019
1Q 4Q 1Q
Domestic demand
(excluding stocks)
94.1 3.8 5.2 4.1
Private Sector 74.2 3.9 5.2 4.4
Consumption 57.0 3.7 4.5 4.3
Investment 17.3 0.2 0.8 0.1
Public Sector 19.8 -0.1 0.0 -0.3
Consumption 12.5 0.0 0.6 0.7
Investment 7.4 -0.1 -0.6 -1.0
Net exports of goods
and services
7.0 3.2 1.0 0.9
Exports 67.6 1.7 2.1 0.0
Imports 60.6 -1.5 1.1 -0.9
Change in stocks
(RM billion)
-1.1 -1.7 -1.5 -0.5
GDP (y-o-y) 100 5.3 4.7 4.5
Real GDP
(Contribution, ppt)
Share1, %
(2018)
2018 2019
1Q 4Q 1Q
Services 56.7 3.6 3.9 3.6
Manufacturing 22.4 1.2 1.0 0.9
Mining and
Quarrying
7.6 -0.1 -0.1 -0.2
Agriculture 7.3 0.2 0.0 0.4
Construction 4.9 0.3 0.1 0.0
Real GDP 100.0 5.3 4.7 4.5
Import duties 1.2 0.1 -0.2 -0.3
Percentage point contribution to growth of GDP components
Add. Info
2
End
End
BANK NEGARA MALAYSIA JABATAN PERANGKAAN MALAYSIA
CENTRAL BANK OF MALAYSIA '.,w‘h DEPARTMENT OF STATISTICS MALAYSIA
,n
-......m.«
SIARAN AKHBAR
No. Ruj.: 15/19/04 EMBARGO: Tidak boleh dicetak
atau disiarkan sebelum pukul 1200
hari Khamis, 16 Mei 2019
Perkembangan Ekonomi dan Kewangan Malaysia
pada Suku Pertama 2019
Ekonomi Malaysia meningkat 4.5% pada suku pertama 2019
Aktiviti sektor swasta kekal sebagai pemacu utama pertumbuhan, disokong
terutamanya oleh pertumbuhan penggunaan swasta yang kukuh pada suku tersebut.
Dari segi penawaran, sektor utama terus berkembang, kecuali sektor perlombongan
disebabkan oleh penurunan pengeluaran minyak dan gas asli susulan penutupan loji
pengeluaran yang tidak dirancang. Pertumbuhan sektor pertanian yang meningkat
semula (S1 2019: 5.6%; S4 2018: -0.1) disebabkan oleh pemulihan hasil minyak
sawit yang kukuh telah memberi dorongan tambahan kepada pertumbuhan.
Berdasarkan pelarasan bermusim suku tahunan, ekonomi negara meningkat 1.1%.
Pada suku pertama, purata inflasi keseluruhan ialah -0.3% (S4 2018: 0.3%). Inflasi
keseluruhan menjadi negatif pada bulan Januari dan Februari (masing-masing -0.7%
dan -0.4%) disebabkan oleh harga bahan api domestik yang lebih rendah. Walau
bagaimanapun, inflasi keseluruhan kembali positif pada bulan Mac (0.2%) apabila
harga minyak global yang semakin meningkat mendorong kepada peningkatan harga
bahan api domestik. Inflasi teras - tanpa mengambil kira kesan perubahan dasar
cukai penggunaan - tidak berubah pada 1.6%.
Pengasasan Semula Tahun Asas bagi Keluaran Dalam Negeri Kasar
(KDNK) Malaysia daripada Harga Tahun Asas 2010 kepada Harga Tahun
Asas 2015
Bermula suku pertama 2019, KDNK Malaysia pada harga malar telah diasaskan
semula kepada harga tahun asas 2015 daripada harga tahun asas 2010.
Pengasasan semula tahun asas yang dibuat oleh Jabatan Perangkaan Malaysia
(Department of Statistics, Malaysia, DOSM) mencerminkan penambahbaikan
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
terhadap sumber dan liputan data, serta peningkatan metodologi, selaras dengan
piawaian antarabangsa bagi penyusunan statistik.
Perkembangan kadar pertukaran
Pada suku pertama 2019, ringgit menambah nilai sebanyak 1.4% berbanding
dengan dolar Amerika Syarikat (AS). Hal ini didorong terutamanya oleh aliran masuk
portfolio bukan pemastautin yang berjumlah RM13.5 bilion. Walau bagaimanapun,
sejak bulan April, ringgit telah menyusut nilai sebanyak 2.2% berbanding dengan
dolar AS (pada 15 Mei), sejajar dengan kebanyakan mata wang serantau. Tekanan
penyusutan nilai baru-baru ini mencerminkan sentimen pelabur yang berhati-hati
dalam pasaran kewangan global berikutan prospek pertumbuhan global yang
bertambah lemah serta ketidakpastian mengenai perkembangan geopolitik dan
perdagangan global.
Pada masa depan, ekonomi Malaysia dijangka kekal pada landasan
pertumbuhan yang stabil
Permintaan sektor swasta dijangka kekal sebagai peneraju pertumbuhan dalam
keadaan perbelanjaan sektor awam yang lebih rendah. Pertumbuhan sektor luaran
dijangka meningkat sedikit seiring dengan permintaan global yang sederhana.
Secara keseluruhan, unjuran asas menunjukkan bahawa ekonomi Malaysia akan
berkembang antara 4.3% hingga 4.8% pada tahun ini.
Pada tahun 2019, purata inflasi keseluruhan dijangka berada antara 0.7% hingga
1.7%. Inflasi teras dijangka stabil, disokong oleh kegiatan ekonomi yang terus
berkembang dan ketiadaan tekanan permintaan yang besar.
Bank Negara Malaysia
16 Mei 2019
KDNK Mengikut Aktiviti Ekonomi (pada harga malar tahun 2015)
Pertumbuhan tahunan (%)
Bahagian
2018
(%)
2018 2019
S1 S4 Tahun S1
Perkhidmatan
Perkilangan
Perlombongan
Pertanian
Pembinaan
56.7
22.4
7.6
7.3
4.9
6.5
5.2
-0.6
3.1
4.9
6.9
4.7
-0.7
-0.1
2.6
6.8
5.0
-2.6
0.1
4.2
6.4
4.2
-2.1
5.6
0.3
KDNK Benar 100.01 5.3 4.7 4.7 4.5
1 Angka-angka tidak terjumlah disebabkan oleh penggenapan dan pengecualian komponen duti import
Sumber: Jabatan Perangkaan Malaysia
Jadual 2:
KDNK Mengikut Komponen Perbelanjaan (pada harga malar tahun 2015)
Bahagian
2018
(%)
2018 2019
S1 S4 Tahun S1
Pertumbuhan tahunan (%)
Permintaan Dalam Negeri Agregat (tidak termasuk stok)
Sektor Swasta
Penggunaan
Pelaburan
Sektor awam
Penggunaan
Pelaburan
94.1
74.2
57.0
17.3
19.8
12.5
7.4
4.1
5.2
6.6
1.1
-0.3
0.4
-1.3
5.7
7.8
8.4
5.8
0.0
4.0
-5.9
5.5
7.1
8.0
4.3
0.1
3.3
-5.0
4.4
5.9
7.6
0.4
-1.4
6.3
-13.2
Eksport Bersih
Eksport Barangan dan Perkhidmatan
Import Barangan dan Perkhidmatan
7.0
67.6
60.6
58.0
2.4
-2.3
15.5
3.1
1.8
11.4
2.2
1.3
10.9
0.1
-1.4
KDNK 100.0 5.3 4.7 4.7 4.5
KDNK (pertumbuhan suku tahunan terlaras
secara bermusim) - 1.3 1.3 - 1.1
Sumber: Jabatan Perangkaan Malaysia
Jadual 1:
Q1_bm
bm_table
Monthly Statistical Bulletin May 2002
Pen: 06/02/51 (BN) EMBARGO: Not for publication or broadcast
Before 1730 hours on Friday, 28 June 2002
PRESS RELEASE ON
MONETARY AND FINANCIAL DEVELOPMENTS
May 2002
Amidst low inflation, the low and stable interest rate environment and ample liquidity
situation continued to support economic recovery. In May, both loan approvals and
disbursements continued to increase at a faster pace, contributing to further loan expansion
and increases in broad money supply. Going forward, with the continued strengthening of the
banking system, the current accommodative monetary policy stance will continue to inject
greater positive monetary impulses towards promoting economic growth.
Interest rate levels continued to remain low and stable
In May, the interbank money market rates remained low and relatively stable,
following BNM liquidity operations to inject RM5.8 billion into the market to offset the
contractionary impact from the Government and external operations.
BNM liquidity operations
were expansionary to
maintain stable liquidity
conditions
BNM Liquidity Operations
(During the month, RM m)
-12000 -10000 -8000 -6000 -4000 -2000 0 2000 4000 6000 8000
May-01
Jun-01
Jul-01
Aug-01
Sep-01
Oct-01
Nov-01
Dec-01
Jan-02
Feb-02
Mar-02
Apr-02
May-02
Contractionary Expansionary
2
The average lending rates (ALR) of both commercial banks (CBs) and finance
companies (FCs) remained relatively stable at 6.56% and 10.04% respectively (6.58% and
10.04% respectively at end-April). Meanwhile, the average base lending rates (BLR) of
CBs and FCs remained unchanged in May.
Liquidity remained ample
Interbank money market
rates remained low
ALR remained relatively
stable during the month
while BLR remained
unchanged.
Liquidity Situation
0
2
4
6
8
10
12
Ja
n-
98
M
ay
-9
8
S
ep
-9
8
Ja
n-
99
M
ay
-9
9
S
ep
-9
9
Ja
n-
00
M
ay
-0
0
S
ep
-0
0
Ja
n-
01
M
ay
-0
1
S
ep
-0
1
Ja
n-
02
M
ay
-0
2
80
82
84
86
88
90
92
94
96
98
100
3-m Interbank Rate (LHS) Loan-Deposit Ratio (RHS)
% Ratio
Interbank Rates
(average for the month)
2%
4%
6%
8%
10%
12%
Ja
n-
98
A
pr
-9
8
Ju
l-9
8
O
ct
-9
8
Ja
n-
99
A
pr
-9
9
Ju
l-9
9
O
ct
-9
9
Ja
n-
00
A
pr
-0
0
Ju
l-0
0
O
ct
-0
0
Ja
n-
01
A
pr
-0
1
Ju
l-0
1
O
ct
-0
1
Ja
n-
02
A
pr
-0
2
Ovn 1-m 3-m BNM Intervention Rate
2.91 2.87
5.00
M
ay
-0
2
Lending Rates: CBs & FCs
6
7
8
9
10
11
12
13
14
15
16
Ja
n-
98
A
pr
-9
8
Ju
l-9
8
O
ct
-9
8
Ja
n-
99
A
pr
-9
9
Ju
l-9
9
O
ct
-9
9
Ja
n-
00
A
pr
-0
0
Ju
l-0
0
O
ct
-0
0
Ja
n-
01
A
pr
-0
1
Ju
l-0
1
O
ct
-0
1
Ja
n-
02
A
pr
-0
2
6
8
10
12
14
16
BLR-CB (LHS) BLR-FC (LHS) ALR-CB (RHS) ALR-FC (RHS)
7.45
% %
6.58 6.56
6.39
10.04 10.04
M
ay
-0
2
3
As at 15 June, the term structure of average fixed deposit (FD) rates for the 1-month
to 12-month maturities of both CBs and FCs also remained unchanged from levels at the end
of May.
FD rate of CBs
remained
unchanged
3-month real FD rate
remained unchanged
3-Month Real FD Rate
0
2
4
6
8
10
12
Ja
n-
98
A
pr
-9
8
Ju
l-9
8
O
ct
-9
8
Ja
n-
99
A
pr
-9
9
Ju
l-9
9
O
ct
-9
9
Ja
n-
00
A
pr
-0
0
Ju
l-0
0
O
ct
-0
0
Ja
n-
01
A
pr
-0
1
Ju
l-0
1
O
ct
-0
1
Ja
n-
02
A
pr
-0
2
%
0
4
8
12
16
20
%
Real 3-m FD - CB (RHS) CPI (Annual)(LHS) 3-m FD - CB (LHS)
1.31 1.31
M
ay
-0
2
...similarly, for
FCs
Term Structure of FD Rates:
Finance Companies
3.0
3.2
3.4
3.6
3.8
4.0
4.2
1-M 3-M 6-M 9-M 12-M
%
15-June 02
31-May 02
30-April 02
Term Structure of FD Rates:
Commercial Banks
3.0
3.2
3.4
3.6
3.8
4.0
4.2
1-M 3-M 6-M 9-M 12-M
%
15-June 02
31-May 02
30-April 02
4
Performance of Ringgit against Major Currencies
(Weekly average)
2.5
3.0
3.5
4.0
RM/US$, Euro, Yen
4.5
5.0
5.5
6.0
STG
US$
Euro
100 Yen
RM/STG
J F M A M J J A S O N D J F M A M 21 June
2001 2002
The ringgit depreciated against major and regional currencies in May
In May, the ringgit depreciated against the major currencies. The ringgit
depreciated against the euro (3.7%), the pound sterling (0.6%) and the Japanese yen
(3.5%), in tandem with the movements of the US dollar in the international foreign exchange
markets. The US dollar was adversely affected by weak US stock market performance;
market concerns over the pace of US economic recovery and the widening current account
deficit, developments in the Middle East and the conflict between India and Pakistan. The
Japanese yen benefited from equity-linked capital inflows following an extended rally in the
Japanese stock market and market optimism that the slump in the Japanese economy has
bottomed-out.
The ringgit depreciated against the regional currencies in the range of 0.9%-5.9%.
Regional currencies benefited from US dollar sales by local exporters as well as equity-linked
capital inflows due to improved market optimism over the growth prospects of regional
economies. The Philippines peso was also supported by remittances from overseas workers,
while the Indonesian rupiah received support from fund inflows on positive market sentiment
over government asset sales.
The ringgit depreciated
against major
currencies
5
Performance of Ringgit against Regional Currencies
(Weekly average)
1.5
2.0
2.5
3.0
3.5
4.0
4.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10,000 Rupiah
100 Baht
1,000 Won
S$
100 Peso
J F M A M J J A S O N D J F M A M 21 June
2001 2002
RM/Rupiah, S$, Won RM/Baht, Peso
During the period 1 – 21 June, the ringgit recorded a mixed performance against the
major currencies. The ringgit depreciated against the euro by 2.8% and the pound sterling by
2.3%, while remaining relatively unchanged against the Japanese yen. The US dollar
weakened further following the release of weaker than expected US retail sales data for May
and the stronger than expected decline in consumer sentiment for June. The US dollar was
also negatively affected by market concerns over the widening US current account deficit in
April, weak stock market performance, poor earnings prospect and stretched valuations, as
well as concerns over further assaults on the US following the bombing of the US consulate
in Pakistan. The ringgit depreciated against most regional currencies in the range of 0.2% -
2.0%.
The ringgit depreciated
against regional
currencies
RM per foreign currency
2 September
1998
End-May.
2002 21 June 2002 May 2002
End-May -
21 June 2002
US dollar 3.8000 3.8000 3.8000 0.0 0.0 0.0 0.0
Euro - 3.5665 3.6683 -3.7 -2.8 -8.2 -
Pound Sterling 6.3708 5.5727 5.7010 -0.6 -2.3 -3.2 11.7
100 Japanese yen 2.7742 3.0801 3.0808 -3.5 0.0 -6.0 -10.0
Singapore dollar 2.1998 2.1295 2.1405 -1.4 -0.5 -4.1 2.8
100 Thai baht 9.3713 8.9623 9.0433 -1.9 -0.9 -4.9 3.6
100 Philippine peso 8.8302 7.5773 7.5750 -0.9 0.0 -2.8 16.6
100 Indonesian Rupiah 0.0354 0.0432 0.0441 -5.6 -2.0 -17.2 -19.7
100 Korean won 0.2827 0.3121 0.3128 -5.9 -0.2 -7.8 -9.6
Performance of Ringgit against Selected Currencies
% Change
End-2001 -
21 June 2002
2 Sep. 1998 -
21 June 2002
6
Inflation remained stable in May
The annual rate of inflation, as measured by the Consumer Price Index (CPI,
2000=100), remained stable at 1.9% in May (April: 1.9%). The rise in CPI was contributed
largely by the increase in prices for transport and communication; and beverages and
tobacco. On a month-on-month basis, the CPI increased marginally by 0.1%.
Producer prices increased in April
Producer prices, as measured by the Producer Price Index (PPI, 1989=100), was
higher by 1.4% year-on-year in April (March: 0.6%). The increase in the PPI was mainly due
to the recovery in prices of crude palm oil and rubber, while prices of crude oil continued to
decline at a slower rate. Excluding commodity related products, the adjusted PPI decreased
marginally by 0.6%.
Inflation remained
stable in May
Producer prices
increased in April
Consumer Price Index
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Ju
n-
00
A
ug
-0
0
O
ct
-0
0
D
ec
-0
0
F
eb
-0
1
A
pr
-0
1
Ju
n-
01
A
ug
-0
1
O
ct
-0
1
D
ec
-0
1
F
eb
-0
2
A
pr
-0
2
A
n
n
u
al
c
h
an
g
e
%
Overall Non-Food
Food
Producer Price Index
-20
-15
-10
-5
0
5
10
15
20
M
ay
-0
0
Ju
l-0
0
S
ep
-0
0
N
ov
-0
0
Ja
n-
01
M
ar
-0
1
M
ay
-0
1
Ju
l-0
1
S
ep
-0
1
N
ov
-0
1
Ja
n-
02
M
ar
-0
2
A
n
n
u
al
c
h
an
g
e
%
Non-Commodity
related
Overall
Commodity
related
`
7
All three monetary
aggregates continued to
grow on an annual
basis…
M3: Monthly Change
-10
-5
0
5
10
15
M
ay
0
0
Ju
l 0
0
S
ep
0
0
N
ov
0
0
Ja
n
01
M
ar
0
1
M
ay
0
1
Ju
l 0
1
S
ep
0
1
N
ov
0
1
Ja
n
02
M
ar
0
2
M
ay
0
2
M3
M3, Seasonally
Adjusted
RM billion
...on a monthly basis, M3
continued to increase…
Broad money continued to increase
On a month-on-month basis, M3 continued to expand by RM0.7 billion or 0.1% in
May. Consequently, the annual growth rate of M3 rose at a faster rate to 6.5% at end-May.
During the month, higher claims on the private sector (RM3.6 billion), on account of
the significant increase in loans, provided the main impetus for the expansion in money
supply. Meanwhile, Government operations were contractionary on money supply reflecting
the increase in deposits with BNM (RM2.7 billion) partly reflecting the higher collection of
petroleum income tax.
Monetary Aggregates: Annual Growth
M1=11.6
M2=5.9
M3=6.5
-5
0
5
10
15
20
M
ay
0
0
Ju
l 0
0
S
ep
0
0
N
ov
0
0
Ja
n
01
M
ar
0
1
M
ay
0
1
Ju
l 0
1
S
ep
0
1
N
ov
0
1
Ja
n
02
M
ar
0
2
M
ay
0
2
YoY %
M1
M2
M3
8
Net withdrawals in banking system deposits while loans continued to increase
On a month-on-month basis, total deposits declined by RM1.4 billion or -0.3% in
May. The decline reflected mainly lower placements by business enterprises. On an annual
basis, total deposits continued to expand by 3.8% as at end-May.
Mar Apr May Jan-May
M3 0.9 2.4 0.7 14.7
Net claims on Government -5.2 4.6 -2.0 4.5
Claims on private sector 2.3 1.6 3.6 12.2
Net external operations1/ 1.7 -0.5 0.9 5.5
Other influences 2.2 -3.3 -1.8 -7.4
1/ pre-revaluation
Change during period
M3 Determinants
(RM billion)
2002
Monthly Change in Deposits (RM million)
Mar. Apr. May
Holder
Federal Government 184 643 -853
State Governments 175 -68 62
Statutory Authorities1/ 863 -168 447
Financial Institutions -229 -758 374
Business Enterprises -741 956 -2,454
Individuals 1,555 1,670 954
Others -2 64 56
Total 1,804 2,340 -1,414
1/ Include local Governments.
2002
...due mainly to high
bank lending activity
Monthly Change in Deposits (RM million)
Mar. Apr. May
Type
Fixed deposits 4,023 -567 -223
NIDs issued 554 -518 302
Demand deposits -2,302 1,222 -1,782
Savings deposits 46 735 77
Repos 643 635 1,271
FX deposits -1,937 -13 416
SPI deposits 779 781 -1,531
Others -2 64 56
Total 1,804 2,340 -1,414
2002
By type, the decline in deposits
was mainly in demand and SPI
deposits
Deposits declined due to lower
placements by business
enterprises
9
Loan approvals accelerated to RM14.4 billion in May (RM9.6 billion in April) and were
granted mainly for the purchase of residential properties and passenger cars; as well as to
the construction and the transport, storage and communication sectors. At the same time,
loan disbursements also increased at a faster pace to RM36.3 billion (April: RM33.7 billion)
and continued to be channelled to a wide range of economic sectors.
Loan disbursements
continued to be channeled to
a wide range of economic
sectors
Approvals and
disbursements were higher
while repayments moderated
Loan Approvals, Disbursements and Repayments
3
6
9
12
15
Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02
RM billion
15
20
25
30
35
40
RM billion
Disbursements (RHS) Repayments (RHS) Approvals (LHS)
Loan Disbursements to Selected Sectors
8,360 8,959 7,581 8,871 8,634 8,478
5,335 5,649
4,557
4,974 5,377 5,345
5,025
5,313
4,593
5,593 5,800 5,795
4,906
5,795 5,726 5,880
8,471
8,103
6,018
6,985
7,364 8,046
8,259
4,668
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02
RM million
Manufacturing Wholesale and retail trade, restaurants and hotels
Consumption Credit Broad Property Sector
Others
10
Loans outstanding extended by the banking system rose significantly by RM4.6
billion in May. The increase was attributed mainly to higher loans channelled for the
purchase of residential properties and passenger cars. On an annual basis, loans
outstanding grew by 4.1 % at end-May.
Aggregate financing through banking system loans and PDS
Notwithstanding the increase in loans extended by the banking system, total financing
through loans extended by the banking system and PDS issued by the private sector
were lower in May by RM2.4 billion. This, however, mainly reflected the early redemptions of
PDS issued by infrastructure companies as part of their debt restructuring exercise. On an
annual basis, total financing increased by 4.6% at end-May (end-April: 6.3%).
Loans outstanding expanded
significantly
Banking System: Loans Outstanding by Sector (RM million)
As at
end
Apr. May. May.
Agriculture, hunting, forestry
and fishing 154 -44 12,165
Mining and quarrying 62 -49 1,298
Manufacturing -837 -458 68,157
Electricity, gas and water supply 49 330 5,148
Wholesale and retail trade,
restaurants and hotels 356 176 39,351
Broad property sector 174 2,778 181,399
of which:
Purchase of residential property 1,150 1,070 92,498
Transport, storage and
communication 474 489 13,300
Finance, insurance and
business services -369 85 35,294
Consumption 1,046 1,172 74,550
of which:
Passenger cars 909 879 49,952
Credit cards 91 176 9,306
Purchase of securities -441 -41 30,040
Others 82 126 20,917
Total Loans1/ 752 4,564 481,619
1/ Including loans sold to Danaharta and Cagamas (inclusive of property loans and
hire purchase receivables).
Note: Sub-total may not add up to grand total due to rounding.
Monthly change
2002
11
Net Redemptions in the Capital Market
On a gross basis, the PDS market raised a sizeable amount of RM7.1 billion in May,
mainly by a company in the infrastructure sector. The funds mobilised by the company,
however was used to redeem the company’s outstanding bonds as part of the debt
restructuring process, contributing to higher aggregate net redemptions of RM4.9 billion in
the PDS market. On the other hand, the equity market raised a lower amount of funds, while
the public sector recorded net redemptions. In total, the capital market recorded net
redemptions of RM4.8 billion in May.
Net redemptions in the
capital market
Financing through banking system loans and PDS
Apr May Jan-May Apr May
Financing by Banking System 1.0 2.9 8.6 5.7 5.1
Loans outstanding (1) 0.8 4.6 11.1 4.3 4.1
Holdings of PDS 0.2 -1.7 -2.5 38.4 30.9
Total PDS outstanding * (2) -0.8 -7.0 -9.2 16.5 7.1
Total (1) + (2) … -2.4 1.9 6.3 4.6
* Refers to total PDS issued by the private sector with original maturity period of more than one year. Exclude debt
securities issued by banking institutions, Khazanah, BNM, Cagamas, Danaharta and Danamodal.
Note: Total may not add-up due to rounding.
%
Annual growth
20022002
Change
RM billion
Net Funds Raised in the Capital Market 1/
1,945
(501)
2,446
1,066
1,380
(4,790)
(1)
(4,789)
161
(4,949)
(6,000)
(5,000)
(4,000)
(3,000)
(2,000)
(1,000)
-
1,000
2,000
3,000
Total Funds Total Public Total Private Private (equity) Private (PDS)
Apr-2002 May-2002
RM million
1/ Net funds raised in the capital market by private sector (include Cagamas and Danaharta bonds)
12
The Kuala Lumpur Stock Exchange Composite Index (KLSE CI) was lower in May.
The absence of fresh leads, investors’ concerns on the strength of recovery in the US
economy and corporate earnings prospect, as well as over the international developments
such as the tension in the Middle East and the India-Pakistan conflict, contributed to the poor
performances of the global and regional bourses. As at 31 May, the KLSE CI closed at
741.76 points (-6.6% since end-April) with market capitalisation at RM518.41 billion (-6.1%
since end-April). The daily average turnover was lower at 245.4 million units (489.4 million
units in April).
Thus far in June, the KLSE CI improved slightly due to buying interests on selected
bluechip stocks. As at 19 June, the KLSE CI closed at 743.90 points (0.3% since end-May)
with market capitalisation at RM521 billion (0.5% since end-May). Meanwhile, the daily
average turnover was lower at 134.4 million units.
International reserves
The net international reserves of BNM amounted to RM123.7 billion or US$32.6
billion as at 31 May and increased further to RM124.1 billion or US$32.7 billion as at 14
June. Continued inflows from the repatriation of export earnings were more than sufficient to
finance the repayment of external loans and payments for imports of goods and services.
The reserves position as at 14 June is adequate to finance 5.4 months of retained imports
and is 4.5 times cover of short-term external debt.
KLSE CI improved
slightly in June
Performance of Selected Indices
90
92
94
96
98
100
102
104
106
108
110
30
-A
pr
2-
M
ay
6-
M
ay
8-
M
ay
10
-M
ay
14
-M
ay
16
-M
ay
20
-M
ay
22
-M
ay
24
-M
ay
28
-M
ay
30
-M
ay
3-
Ju
n
5-
Ju
n
7-
Ju
n
11
-J
un
13
-J
un
17
-J
un
19
-J
un
30
A
pr
. 2
00
2=
10
0
KLSE CI
Dow Jones
Hang Seng
Singapore STI
NASDAQ
13
Banking system remained strong and resilient
The risk-weighted capital ratio (RWCR) and core capital ratio (CCR) decreased by 20
and 30 basis points respectively at end May. This is due to the increase in loans extended by
the banking system of RM4.6 billion or 1% during the month, mainly to the construction
sector and for consumer-related activities (i.e. loans for purchase of residential property and
transport vehicles). Meanwhile, the net NPL ratio remained stable at 8.2%. With adequate
provisioning maintained by the banking institutions and high capital adequacy ratio, the
banking system remained resilient.
Banking System Health Indicators
1998 1999 2000 2001 2002
Dec. Dec. Dec. Jun. Dec. Apr. May
Capital
Core-capital ratio (%) 8.7 10.1 10.7 10.5 10.8 10.8 10.5
RWCR (%) 11.8 12.5 12.5 12.6 12.8 12.5 12.3
Net NPL (6-month
classification)
Banking system (%) 8.1 6.4 6.3 8.0 8.1 8.2 8.2
Banking system (RM million) 31,675 23,849 24,700 32,292 32,775 33,576 33,993
GP/Net total loans (6-
month, %) 2.0 1.9 1.9 1.9 1.9 1.9 1.8
* Beginning June 1999 onwards, the figures include Islamic banks
Net International Reserves
(as at end)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
M
ay
-0
0
Ju
n-
00
Ju
l-0
0
A
ug
-0
0
S
ep
-0
0
O
ct
-0
0
N
ov
-0
0
D
ec
-0
0
Ja
n-
01
Fe
b-
01
M
ar
-0
1
A
pr
-0
1
M
ay
-0
1
Ju
n-
01
Ju
l-0
1
A
ug
-0
1
S
ep
-0
1
O
ct
-0
1
N
ov
-0
1
D
ec
-0
1
Ja
n-
02
Fe
b-
02
M
ar
-0
2
A
pr
-0
2
M
ay
-0
2
14
-J
un
-0
2
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Reserves (LHS) Import cover (RHS) Reserves/Short-Term External Debt (RHS)
US$ billion Months/Times
USD32.7b
5.4 mths
4.5 times
14
The 6th property tender conducted by Danaharta was completed on 2 May. Of the 265
properties offered for sale, a total of 141 successful bids were received, representing 53% of
the total number of properties offered. This is the highest sales level, both in terms of number
and value, that Danaharta has achieved in its nationwide property tenders that have been
held so far.
These properties were sold for a total consideration of RM326 million, representing a
12% surplus over the sold properties’ total indicative value of RM290.1 million. Industrial
properties represented the highest number of properties sold (33 bids or 23%) followed by
agricultural land (28 bids or 20%), development land (27 bids or 19%) and commercial
properties (26 bids or 18%).
Banking System: Capital Strength Indicators
8
9
10
11
12
13
14
Ja
n-
99
A
pr
-9
9
Ju
l-9
9
O
ct
-9
9
Ja
n-
00
A
pr
-0
0
Ju
l-0
0
O
ct
-0
0
Ja
n-
01
A
pr
-0
1
Ju
l-0
1
O
ct
-0
1
Ja
n-
02
A
pr
-0
2
(%)
RWCR Core Capital
….RWCR marginally reduced
to 12.3%
Banking System: Net NPL and General Provisions
0
10
20
30
40
S
ep
-9
8
D
ec
-9
8
M
ar
-9
9
Ju
n-
99
S
ep
-9
9
D
ec
-9
9
M
ar
-0
0
Ju
n-
00
S
ep
-0
0
D
ec
-0
0
M
ar
-0
1
Ju
n-
01
S
ep
-0
1
D
ec
-0
1
M
ar
-0
2
0
2
4
6
8
10
General Provision Net NPL Net NPL Ratio
NPL and GP (RM b) NPL ratio (%)
…Net NPL ratio stabilised at
8.2%
15
With the completion of the 6th property tender, Danaharta had offered a total of 803
properties worth RM1.8 billion to the market via primary and secondary sales. Of these, 699
properties or approximately 83%, were sold for a total consideration of RM1.2 billion.
Capital injection by Danamodal into the banking institutions remained at RM2.1 billion
as at end-May. Meanwhile, CDRC has resolved another debt restructuring case during the
month, reducing the number of outstanding cases to 7 with outstanding debts amounting to
RM12.6 billion.
Statistics of CDRC cases as at 31 May 2002
Total debt
outstanding*
(RM million)
Number of
accounts
Received 67,644 87
Withdrawn / Rejected 10,606 25
Transferred to Danaharta 2,470 11
Cases accepted 54,568 51
Resolved 41,991 44
Implemented 28,714 24
Pending implementation 13,277 20
Outstanding 12,577 7
* Including non-banking and offshore institutions
Bank Negara Malaysia
28 June 2002
16
Key Monetary and Banking Statistics
April 2002 May 2002
Outstanding Ann. growth Outstanding Ann. growth
(RM billion) (%) (RM billion) (%)
Monetary Aggregates
Reserve money 40.8 4.9 41.0 6.8
M1 82.2 13.4 80.7 11.6
M2 371.9 5.6 371.4 5.9
M3 483.6 5.9 484.3 6.5
Banking System
Total deposits 490.5 4.1 489.1 3.8
Total loans (including loans sold to Cagamas
and Danaharta)
477.1 4.3 481.6 4.1
Total loans (excluding loans sold to Cagamas
and Danaharta)
414.1 3.8 418.7 3.7
Loan-deposit ratio (%) 84.4 85.6
Loans approved during the month 9.6 14.4
Loans disbursed during the month 33.7 36.3
Banking System Health
Risk-weighted Capital Ratio (RWCR) (%) 12.5 12.3
Net NPLs: 6-month classification (%) 8.2 8.2
International Reserves of BNM (end-period)
Reserves in RM (billion) 124.4 123.7
Reserves in USD (billion) 32.7 32.6
Months of retained imports 5.4 5.4
Interest Rates at end-period [average for the month]
Interbank: 1-month
3-month
2.76 [2.77]
3.21 [2.91]
2.97 [2.81]
3.23 [2.87]
Fixed deposits of commercial banks: 1-month
3-month
3.20 [3.20]
3.21 [3.21]
3.20 [3.20]
3.21 [3.21]
BLR of commercial banks 6.39 [6.39] 6.39 [6.39]
Prices
Consumer price Index (CPI) (2000=100) 103.2 1.9 103.3 1.9
Producer price Index (PPI) (1989=100) 127.9 1.4 - -
Exchange Rates of Ringgit against Selected Currencies (end-period)
Euro 3.4346 3.5665
Pound Sterling 5.5395 5.5727
Singapore dollar 2.1003 2.1295
100 Japanese yen 2.9710 3.0801
100 Thai Baht 8.7892 8.9623
100 Philippine Peso 7.5117 7.5773
100 Indonesian Rupiah 0.0408 0.0432
100 Korean Won 0.2938 0.3121
Capital Market
Funds raised by: public sector (RM billion)
private sector (RM billion)
-0.5
2.4
0.0
-4.8
Kuala Lumpur Composite Index (end-period) 793.99 741.76
KLSE Market Capitalisation (RMb) (end-period) 551.83 518.41
| Press Release |
07 May 2019 | International Reserves of Bank Negara Malaysia as at 30 April 2019 | https://www.bnm.gov.my/-/reserve-30040291 | null | null |
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International Reserves of Bank Negara Malaysia as at 30 April 2019
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International Reserves of Bank Negara Malaysia as at 30 April 2019
Embargo :
For immediate release
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1500 on
Tuesday, 7 May 2019
7 May 2019
The international reserves of Bank Negara Malaysia amounted to USD103.4 billion as at 30 April 2019. The reserves position is sufficient to finance 7.4 months of retained imports and is 1.0 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (30 April 2019)
Bank Negara Malaysia
7 May 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
07 May 2019 | Monetary Policy Statement | https://www.bnm.gov.my/-/monetary-policy-statement-07052019 | null | null |
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Monetary Policy Statement
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Monetary Policy Statement
Embargo :
For immediate release
Not for publication or broadcast before
0700 on
Tuesday, 7 May 2019
7 May 2019
At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) to 3.00 percent. The ceiling and floor rates of the corridor for the OPR are correspondingly reduced to 3.25 percent and 2.75 percent respectively.
The global economy continues to expand moderately. While growth outcomes for several major economies were better than expected during the first quarter, underlying economic conditions continue to suggest moderation going forward. Considerable downside risks to global growth remain, stemming from unresolved trade tensions and prolonged country-specific weaknesses in the major economies, further dampening global trade and investment activities. Although the tightening in global financial conditions has eased somewhat, heightened policy uncertainties could lead to sharp financial market adjustments, further weighing on the overall outlook.
For Malaysia, latest developments point towards moderate economic activity in the first quarter of 2019. Looking ahead, slowing global demand conditions and subdued growth of key trading partners will continue to weigh on the external sector. Domestically, stable labour market conditions and capacity expansion in key sectors will continue to drive household and capital spending. The baseline projection is for the Malaysian economy to grow within the projected range of 4.3% - 4.8%. However, there are downside risks to growth from heightened uncertainties in the global and domestic environment, trade tensions and extended weakness in commodity-related sectors.
Headline inflation increased to 0.2% in March 2019 (February: -0.4%), due mainly to the less negative transport inflation at -3.0% (February: -6.8%). Underlying inflation, as measured by core inflation[1], remained stable at 1.6% in March 2019. In the immediate term, inflation is expected to remain low mainly due to policy measures. These include the price ceiling on domestic retail fuel prices until mid-2019 and the impact of the changes in consumption tax policy on headline inflation. For 2019 as a whole, average headline inflation is expected to be broadly stable compared to 2018. The trajectory of headline inflation will continue to be dependent on global oil prices. Underlying inflation is expected to remain stable, supported by the continued expansion in economic activity and in the absence of strong demand pressures.
The domestic financial markets have remained resilient, despite periods of volatility primarily due to global developments. While domestic monetary and financial conditions remain supportive of economic growth, there are some signs of tightening of financial conditions. The adjustment to the OPR is therefore intended to preserve the degree of monetary accommodativeness. This is consistent with the monetary policy stance of supporting a steady growth path amid price stability. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.
[1] Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the estimated direct impact of consumption tax policy changes.
Bank Negara Malaysia
7 May 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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30 Apr 2019 | Detailed Disclosure of International Reserves as at end-March 2019 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-march-2019 | null | null |
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In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD103,005.5 million, while other foreign currency assets amounted to USD147.3 million as at end-March 2019. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from maturity of the foreign currency Bank Negara Interbank Bills, amounted to USD4,273.7 million. The short forward positions amounted to USD14,227.0 million while long forward positions amounted to USD50 million as at end-March 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to USD2,546.8 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD350.9 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-March 2019, Malaysia’s reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
30 April 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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30 Apr 2019 | Monetary and Financial Developments in March 2019 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-march-2019 | https://www.bnm.gov.my/documents/20124/93694/i_en.pdf | null |
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This document is in Portable Document File (PDF) format.
In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
If you already have the software, read the document. [PDF, 225KB]
See also: Monthly Highlights and Statistics March 2019
Bank Negara Malaysia
30 April 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
a
n
-2
2
F
e
b
-2
2
M
a
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2
2
A
p
r-
2
2
M
a
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-2
2
J
u
n
-2
2
J
u
l-
2
2
A
u
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-2
2
S
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p
-2
2
O
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t-
2
2
N
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-2
2
D
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-2
2
J
a
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-2
3
F
e
b
-2
3
M
a
r-
2
3
A
p
r-
2
3
M
a
y
-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
a
y
2
2
J
u
n
2
2
J
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2
2
A
u
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2
2
S
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p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
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2
2
J
a
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2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
a
y
2
2
J
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2
2
J
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l
2
2
A
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2
2
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2
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2
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3
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3
A
p
r
2
3
M
a
y
2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
29 Apr 2019 | Appointment of Two External Members to Bank Negara Malaysia’s Monetary Policy Committee | https://www.bnm.gov.my/-/appointment-of-two-external-members-to-bank-negara-malaysia-s-monetary-policy-committee-1 | null | null |
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Appointment of Two External Members to Bank Negara Malaysia’s Monetary Policy Committee
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29 Apr 2019
Bank Negara Malaysia wishes to announce the reappointment of Professor Dr. Yeah Kim Leng and the appointment of Dato’ Dr. Gan Wee Beng as external members of Bank Negara Malaysia’s Monetary Policy Committee, effective 1 April 2019. This follows from the enactment of the Central Bank of Malaysia Act 2009, which provides for the appointment of external members to the Monetary Policy Committee. The reappointment of Professor Dr. Yeah Kim Leng is for a one-year term while the appointment of Dato’ Dr. Gan Wee Beng is for a two-year term.
The Monetary Policy Committee is responsible for formulating monetary policy and policies for the conduct of monetary policy operations. Monetary policy is autonomously formulated and implemented by Bank Negara Malaysia, as mandated in the Central Bank of Malaysia Act 2009.
Professor Dr. Yeah Kim Leng
Dr. Yeah Kim Leng is a Professor of Economics in the Sunway University Business School, Sunway University, after serving as the Dean of the School of Business at the Malaysia University of Science and Technology. He is also the Director of the Economic Studies Program at the Jeffrey Cheah Institute on Southeast Asia, a Senior Fellow at the Jeffrey Sachs Center on Sustainable Development at Sunway University and a Deputy President of the Malaysian Economic Association. Dr. Yeah was previously the Group Chief Economist at RAM Holdings Bhd, having served the organisation for two decades. Prior to joining RAM, Dr. Yeah was a senior analyst at the Institute of Strategic and International Studies (ISIS) Malaysia. Dr. Yeah holds a PhD in Agriculture and Resource Economics and an MBA from the University of Hawaii, US.
Dato’ Dr. Gan Wee Beng
Dato’ Dr. Gan Wee Beng is currently a Board Member of Perbadanan Insurans Deposit Malaysia (PIDM). He was previously a board member at Kumpulan Wang Persaraan (KWAP) and has held several positions in CIMB Group including as Advisor for Investment Banking, and Executive Director at CIMB Bank, CIMB Investment Bank and CIMB Securities Berhad. Prior to this, he was a Senior Advisor at the Economics Department of the Monetary Authority of Singapore, and consultant to the World Bank, International Labour Organisation and Bank Negara Malaysia. He was also a Research Fellow at the Malaysian Institute of Economic Research. Dato’ Dr. Gan holds a PhD in Economics from the University of Pennsylvania, USA and an MSc in Economics from the University of Malaya.
The appointments of Professor Dr. Yeah Kim Leng and Dato’ Dr. Gan Wee Beng will continue to enhance the collective expertise and experience relevant to the responsibilities and functions of the Monetary Policy Committee. With their appointments, the Monetary Policy Committee will comprise seven members in total.
Members of the Monetary Policy Committee
Governor Nor Shamsiah Yunus
Deputy Governor Abdul Rasheed Ghaffour
Deputy Governor Jessica Chew Cheng Lian
Assistant Governor Norzila Abdul Aziz
Assistant Governor Marzunisham Omar
Professor Dr. Yeah Kim Leng
Dato’ Dr. Gan Wee BengBank Negara Malaysia
29 April 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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23 Apr 2019 | Joint Statement on the 16th Bilateral Meeting between Bank Negara Malaysia and the Securities Commission Malaysia | https://www.bnm.gov.my/-/joint-statement-on-the-16th-bilateral-meeting-between-bank-negara-malaysia-and-the-securities-commission-malaysia | null | null |
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Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) met at the 16th BNM-SC Bilateral Meeting to advance discussions on areas of mutual interest between both authorities, including sustainability initiatives, digital asset regulations and resilience of the financial markets.
The authorities discussed initiatives relating to the sustainability agenda, particularly on the SC’s Sustainable and Responsible Investment Framework (SRI) and BNM’s Value-Based Intermediation Strategy (VBI). Given the alignment between SRI and VBI, both regulators agreed to embark on a joint research study to develop a clear taxonomy on sustainable economic activities starting with fundraising and lending practices. Another area being looked at involves understanding the transmission of climate and environmental-related risks to the financial system and economy, and the feedback loop. This initiative is an expansion of ongoing collaboration between the authorities in areas of national strategic interest especially in Islamic finance.
In relation to digital asset regulations, both authorities have entered into coordinating arrangements which will facilitate industry innovation, fundraising activities for early-stage companies and trading of digital assets. The arrangement will also support the oversight of digital asset activities and ensure that systemic risk and financial integrity measures remain effective.
BNM and the SC also discussed recent developments in the financial markets and observed that the Malaysian financial markets have remained resilient. Conditions in the capital, foreign exchange (FX) and money markets continued to be orderly, supported by ample domestic liquidity, robust market infrastructures and firm macroeconomic fundamentals.
In particular, the Malaysian bond market continues to be vibrant with a deep secondary market having an average daily trading volume of RM5.4 billion year-to-date compared to the past 3-year average of RM3.6 billion. Liquidity in the FX market recorded a sustainable average daily trading volume of USD12 billion, of which the FX swap and forward market accounts for close to half of the average volume. The increase in dynamic hedging activities by global institutional investors has improved market access and further contributed to the liquidity in the FX forward market.
The authorities will continue to engage with key market participants and intermediaries to further develop the depth and breadth of the Malaysian financial markets in ensuring accessibility while preserving stability and transparency.
Bank Negara Malaysia
23 April 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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22 Apr 2019 | International Reserves of Bank Negara Malaysia as at 15 April 2019 | https://www.bnm.gov.my/-/reserve-15042019 | null | null |
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The international reserves of Bank Negara Malaysia increased to USD103.5 billion as at 15 April 2019. The reserves position is sufficient to finance 7.7 months of retained imports and is 1.0 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (15 April 2019)
Bank Negara Malaysia
22 April 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
08 Apr 2019 | Bank Negara Malaysia and the Financial Industry Engaged the Local Community in Karnival Kewangan Terengganu | https://www.bnm.gov.my/-/bank-negara-malaysia-and-the-financial-industry-engaged-the-local-community-in-karnival-kewangan-terengganu | null | null |
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Bank Negara Malaysia and the Financial Industry Engaged the Local Community in Karnival Kewangan Terengganu
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Bank Negara Malaysia and the Financial Industry Engaged the Local Community in Karnival Kewangan Terengganu
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8 Apr 2019
Bank Negara Malaysia (BNM) held Karnival Kewangan Terengganu (Karnival) from 4 to 6 April 2019 in collaboration with the financial institutions at TH Hotel & Convention Centre, Kuala Terengganu. The event was the fifth in a series of the Bank’s nationwide engagements following Karnival Kewangan in Kuala Lumpur, Kota Kinabalu, Kuching and Kedah.
Themed “Your Financial Needs Matters”, the Karnival aims to raise the public’s awareness on financial products and services, financial literacy and strengthen the community’s financial management capabilities with an emphasis on preferences of the local communities.
Leading up to the Karnival, a series of roadshows entitled “Sembang Santai Bersama Rakan-Rakan Karnival Kewangan” were organised to promote the Karnival. During the roadshows, local communities of all ages were offered an array of financial services and advisories such as tips to recognise the security features of Malaysia banknote, financial management, opening of bank account, printing of CCRIS and registration of eCCRIS. The 1,200 km journey covering 11 locations in Pahang, Terengganu and Kelantan reached out to more than 3,000 people.
On 4 April 2019, the Karnival was attended by Y.A.B Dr. Ahmad Samsuri Mokhtar, Chief Minister of Terengganu. During the walkabout, he also launched the MyWakaf website and MyWakaf Payment Getaway by Association of Islamic Banking Institutions Malaysia (AIBIM).
In conjunction with the Karnival, BNM held several dialogue sessions with the local businesses, financial communities, government agencies and university students. These sessions were chaired by Assistant Governor Abu Hassan Alshari Yahaya and Assistant Governor Adnan Zaylani Mohamad Zahid. At the dialogue sessions, the businesses and local communities shared their feedback, challenges and insights affecting the socio-economic developments of the East Coast region.
Overall, Karnival Kewangan Terengganu received an overwhelming response from more than 18,000 people in the East Coast region. The Karnival brought together more than 40 financial institutions and government agencies to showcase their products and services as well as provided advisory on financial matters and access to financing. A total number of 1,800 visitors printed their CCRIS reports to check their credit status and registered for eCCRIS. The Karnival also recorded more than 16,000 advisories on financial matters and around 4,000 financial transactions valued more than RM25 million were completed.
Visitors also benefited from Pocket Talks on topics such as SME financing, Skim Cepat Kaya, effective debt management from an Islamic perspective, e-payment, insurance/takaful protection, Forum Perdana Ehwal Islam as well as sharing sessions with successful entrepreneurs such as Caprice, Yaya Kuih Bulan and Raw Denim House.
Karnival Kewangan is a collaborative effort by Bank Negara Malaysia and the financial industry and is a crucial stepping stone to promote financial literacy in Malaysia.
Assistant Governor, Encik Abu Hassan Alshari Yahaya with representatives from the financial institution during his walkabout in the closing of Karnival Kewangan Terengganu
Pocket talk on financial crime by Bank Negara Malaysia (BNM), Polis DiRaja Malaysia (PDRM) and Suruhanjaya Sekuriti Malaysia (SC) during Karnival Kewangan Terengganu
Bank Negara Malaysia
8 April 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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05 Apr 2019 | International Reserves of Bank Negara Malaysia as at 29 March 2019 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-29-march-2019 | null | null |
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5 Apr 2019
The international reserves of Bank Negara Malaysia increased to USD103.0 billion as at 29 March 2019. The reserves level has taken into account the quarterly adjustment for foreign exchange revaluation changes. The reserves position is sufficient to finance 7.5 months of retained imports and is 1.0 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (29 March 2019)
Bank Negara Malaysia
5 April 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
05 Apr 2019 | Regional Cooperation to promote Local Currency Settlement between Bank Indonesia, Bank Negara Malaysia, Bangko Sentral ng Pilipinas and Bank of Thailand | https://www.bnm.gov.my/-/regional-cooperation-to-promote-local-currency-settlement-between-bank-indonesia-bank-negara-malaysia-bangko-sentral-ng-pilipinas-and-bank-of-thailand | null | null |
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Regional Cooperation to promote Local Currency Settlement between Bank Indonesia, Bank Negara Malaysia, Bangko Sentral ng Pilipinas and Bank of Thailand
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Regional Cooperation to promote Local Currency Settlement between Bank Indonesia, Bank Negara Malaysia, Bangko Sentral ng Pilipinas and Bank of Thailand
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5 Apr 2019
Chiang Rai, 5 April 2019: Bank Indonesia, Bank Negara Malaysia, Bangko Sentral ng Pilipinas and Bank of Thailand have signed today three pairs of bilateral Letters of Intent (LOIs) on local currency settlement framework:
LOI between Benjamin E. Diokno, Governor of Bangko Sentral ng Pilipinas, and Perry Warjiyo, Governor of Bank Indonesia; and
LOI between Benjamin E. Diokno, Governor of Bangko Sentral ng Pilipinas, and Nor Shamsiah Yunus, Governor of Bank Negara Malaysia;
LOI between Benjamin E. Diokno, Governor of Bangko Sentral ng Pilipinas, and Veerathai Santiprabhob, Governor of the Bank of Thailand;
The three LOIs represent the mutual interests in the potential establishment of local currency settlement frameworks between the respective countries of the four central banks. Bank Indonesia and Bank of Thailand have likewise agreed to start exploring the possibility of expanding the scope of their existing local currency settlement framework.
The use of local currencies in settlement of trade and other areas intends to reduce transaction costs and foreign exchange risks particularly amidst the current volatility faced by currencies in advanced economies. Moreover, the wider use of local currencies in the ASEAN Economic Community enhances economic and financial integration, as well as spurs further development of the foreign exchange and financial markets, within the region.
The progress towards greater financial integration in the region is a welcome development as we witness the expansion of similar arrangements that were launched in 2017 namely, the Memoranda of Understanding (MoUs) concluded between Bank Indonesia and Bank Negara Malaysia, and between Bank Indonesia and Bank of Thailand.
Bank Indonesia
Bank Negara Malaysia
Bangko Sentral ng Pilipinas
Bank of Thailand
5 April 2019
Bank Negara Malaysia
5 April 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
05 Apr 2019 | Bank Negara Malaysia Engagement with SMEs and Financial Institutions in Terengganu | https://www.bnm.gov.my/-/bank-negara-malaysia-engagement-with-smes-and-financial-institutions-in-terengganu | null | null |
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5 Apr 2019
Bank Negara Malaysia (BNM) held a dialogue session with local SMEs, state government agencies and financial institutions in conjunction with Karnival Kewangan which was launched on 4 April 2019. The dialogue session was chaired by Assistant Governor Adnan Zaylani Mohamad Zahid and attended by 11 business chambers and SME associations.
BNM is committed to ensuring that the SME financing ecosystem caters to the needs of SMEs, especially financing, advisory and redress channels. BNM also emphasised that SMEs continue to have access to financing from 40 financial institutions including 16 Islamic financial institutions.
Through the dialogue session, the business community provided insights on developments affecting the east coast region and discussed the challenges that they faced in doing business. Generally, SMEs felt that access to financing is not the main constraint in doing business. However, access to training and capacity building avenues and the need to increase knowledge on financial products are concerns highlighted by the business community.
SMEs facing financial difficulties are advised to seek assistance at an early stage, and can avail themselves to advisory platforms such as the dedicated ‘Kaunter PKS’ which have been set up at all six BNMLINK centres nationwide (Kuala Lumpur, Pulau Pinang, Johor Bahru, Kuala Terengganu, Kota Kinabalu dan Kuching).
SMEs were urged to formalise their business to enable them to benefit from the various financing schemes provided by the financial community, including tapping on BNM’s Fund for SMEs and Islamic financing facilities by Islamic financial institutions. SMEs are advised to acquire financial management skills, maintain good record-keeping and take-up takaful or insurance to protect businesses against shocks or natural disasters.
The discussion and engagement session had received positive feedback from the business community and the Government agencies in Terengganu. The Government agencies hope to collaborate further with the financial industry to strengthen and improve SMEs’ access to advisory and financing.Bank Negara Malaysia
5 April 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
29 Mar 2019 | Detailed Disclosure of International Reserves as at end-February 2019 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-february-2019 | null | null |
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Detailed Disclosure of International Reserves as at end-February 2019
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Detailed Disclosure of International Reserves as at end-February 2019
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29 Mar 2019
In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD102,361.8 million, while other foreign currency assets amounted to USD653.8 million as at end-February 2019. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from maturity of the foreign currency Bank Negara Interbank Bills, amounted to USD4,035.7 million. The short forward positions amounted to USD18,356.1 million while long forward positions amounted to USD600 million as at end-February 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to USD2,705.5 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD351.1 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-February 2019, Malaysia’s reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
29 March 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
29 Mar 2019 | Monetary and Financial Developments in February 2019 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-february-2019 | https://www.bnm.gov.my/documents/20124/93697/i_en.pdf | null |
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Monetary and Financial Developments in February 2019
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Monetary and Financial Developments in February 2019
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29 Mar 2019
This document is in Portable Document File (PDF) format.
In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
If you already have the software, read the document. [PDF, 225KB]
See also: Monthly Highlights and Statistics February 2019
Bank Negara Malaysia
29 March 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
a
n
-2
2
F
e
b
-2
2
M
a
r-
2
2
A
p
r-
2
2
M
a
y
-2
2
J
u
n
-2
2
J
u
l-
2
2
A
u
g
-2
2
S
e
p
-2
2
O
c
t-
2
2
N
o
v
-2
2
D
e
c
-2
2
J
a
n
-2
3
F
e
b
-2
3
M
a
r-
2
3
A
p
r-
2
3
M
a
y
-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
27 Mar 2019 | Liberalisation of Foreign Exchange Administration Policies | https://www.bnm.gov.my/-/liberalisation-of-foreign-exchange-administration-policies | https://www.bnm.gov.my/documents/20124/65309/FAQ_Liberalisation+of+FEA+Policies.pdf, https://www.bnm.gov.my/documents/20124/65309/Supplementary+Notice+No.+5+on+FEA+Rules.pdf | null |
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Liberalisation of Foreign Exchange Administration Policies
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Liberalisation of Foreign Exchange Administration Policies
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27 Mar 2019
Bank Negara Malaysia is pleased to announce further liberalisation in the foreign exchange administration (FEA) framework aimed at providing greater hedging flexibility for residents to better manage their foreign exchange (FX) risk:
i. Residents can hedge their foreign currency obligations for longer tenure
Flexibility for residents to hedge their foreign currency obligations is extended to 12 months which would facilitate efficient financial planning by businesses. Residents may also obtain approval from the Bank to hedge their foreign currency obligations beyond 12 months.
This measure is effective immediately.
ii. SME with net import obligations can receive payment in foreign currency from resident exporters
In recognising SMEs’ limited hedging capabilities, SMEs, which are net importers within the global supply chain of goods and services, are allowed to receive foreign currency payment from resident exporters for their domestic trade in goods and services.
This measure is effective 2 May 2019, to provide time for banks to set up this flexibility for eligible SMEs and the resident exporters.
Further details on the above liberalisation are provided in the Supplementary Notice No. 5 on Foreign Exchange Administration Rules issued by the Bank.
See also:
Supplementary Notice No. 5 on FEA Rules
Frequently Asked QuestionsBank Negara Malaysia
27 March 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Sorotan Bulanan
4.9
7.1
5.5
0
5
10
15
20
M
ac
-1
8
Ap
r-1
8
M
ei
-1
8
Ju
n-
18
Ju
l-1
8
O
go
-
18
Se
p-
18
O
kt
-1
8
N
ov
-1
8
D
is
-1
8
Ja
n-
19
Fe
b-
19
M
ac
-1
8
Pinjaman Sistem Perbankan
Bon Korporat
Pembiayaan Bersih
Pembiayaan bersih terus meningkat untuk menyokong aktiviti ekonomi
Mac 2019
1
• Pembiayaan bersih2 mencatatkan pertumbuhan
tahunan 5.5% pada bulan Mac 2019 (Februari
2019: 5.8%). Pertumbuhan pinjaman terkumpul
mampan pada 4.9% (Februari 2019: 5.0%),
manakala pertumbuhan bon korporat terkumpul
menjadi sederhana kepada 7.1% (Februari 2019:
7.9%).
• Pertumbuhan pinjaman perniagaan terkumpul
meningkat sebanyak 4.1% (Februari 2019: 4.3%),
didorong terutamanya oleh pertumbuhan yang
lebih rendah dalam sektor pembinaan; kewangan,
insurans, dan perkhidmatan perniagaan, dan harta
tanah.
• Pinjaman isi rumah terkumpul berkembang
sebanyak 5.3% (Februari 2019: 5.2%).
%, tahun ke tahun
Perdagangan borong dan runcit meningkat lebih perlahan pada bulan Februari
Inflasi keseluruhan meningkat, mencerminkan terutamanya harga bahan api dalam
negeri yang lebih tinggi
Pembiayaan Bersih Melalui Pinjaman Sistem Perbankan dan
Bon Korporat
2 Pembiayaan bersih merujuk pinjaman terkumpul sistem perbankan [kecuali
institusi kewangan pembangunan (IKP)] dan bon korporat terkumpul.
Sumber: Bank Negara Malaysia
• Indeks Perdagangan Borong dan Runcit (Index
of Wholesale and Retail Trade, IOWRT) bulan
Februari meningkat lebih perlahan pada kadar
6.4% (Januari: 7.9%), mencerminkan penurunan
menyeluruh di kesemua segmen utama.
• Segmen runcit kekal sebagai pemacu
pertumbuhan yang utama, mencerminkan
penggunaan isi rumah yang terus kukuh.
• Walau bagaimanapun, pertumbuhan segmen
borong terus menurun sejajar dengan aktiviti
perkilangan dan perdagangan yang lebih
perlahan.
Sumber: Jabatan Perangkaan Malaysia
mata peratusan, tahun ke tahun
Sumbangan kepada IOWRT keseluruhan
• Inflasi keseluruhan meningkat kepada 0.2%
(Februari: -0.4%) mencerminkan inflasi
pengangkutan yang mencatatkan kadar negatif
yang menguncup (Mac: -3.0%; Februari: -6.8%).
Hal ini disebabkan oleh kenaikan harga minyak
sedunia yang seterusnya mengakibatkan harga
bahan api dalam negeri yang lebih tinggi.
• Inflasi dalam kategori lain secara relatif adalah
stabil.
• Tidak termasuk kesan perubahan dasar cukai
penggunaan, inflasi teras tidak berubah pada
1.6%.
1Pengiraan inflasi teras tidak termasuk barangan yang harganya tidak
menentu dan barangan yang harganya ditadbir. Pengiraannya juga tidak
termasuk anggaran kesan langsung perubahan dasar cukai.
Sumber: Jabatan Perangkaan Malaysia dan anggaran Bank Negara Malaysia
Sumbangan kepada inflasi
sumbangan mata peratusan
0.2
1…
-2.0
-1.0
0.0
1.0
2.0
-2.0
-1.0
0.0
1.0
2.0
M
ac
-1
8
Ap
r-1
8
M
ei
-1
8
Ju
n-
18
Ju
l-1
8
O
go
-1
8
Se
p-
18
O
kt
-1
8
N
ov
-1
8
D
is
-1
8
Ja
n-
19
Fe
b-
19
M
ac
-1
9
Lain-lain (32.1%) Perumahan & utiliti (23.8%)
Pengangkutan (14.6%) Makanan & minuman bukan alkohol (29.5%)
Inflasi keseluruhan (skala kanan) Inflasi teras (skala kanan)1
%, tahun ke tahun
6.4
-2
0
2
4
6
8
10
12
Fe
b-
18
M
ac
-1
8
Ap
r-1
8
M
ei
-1
8
Ju
n-
18
Ju
l-1
8
O
go
-1
8
Se
p-
18
O
kt
-1
8
N
ov
-1
8
D
is
-1
8
Ja
n-
19
Fe
b-
19
Kenderaan motor Borong Runcit
Sorotan Bulanan
Mac 2019
2
Prestasi pasaran kewangan domestik bercampur-campur di tengah-tengah
ketidakpastian global
• Pada bulan Mac, ringgit menyusut nilai
sebanyak 0.3% berbanding dengan dolar
Amerika Syarikat (AS) dan ini turut dialami
oleh kebanyakan mata wang serantau (antara
0.5% hingga -1.7%). Susut nilai mata wang ini
disebabkan terutamanya oleh aliran keluar
bukan pemastautin daripada pasaran ekuiti
berikutan sentimen yang lemah dalam
kalangan pelabur akibat kebimbangan
terhadap prospek pertumbuhan global dan
geopolitik dan juga faktor-faktor dalam negeri.
Berikutan itu, FBM KLCI merosot sebanyak
3.8%.
• Kadar hasil MGS 10 tahun menurun sebanyak
13 mata asas, didorong oleh aliran masuk
bukan pemastautin yang berterusan sebanyak
RM2.7 bilion ke dalam pasaran bon Kerajaan.
Penurunan ini sejajar dengan trend menurun
kadar hasil bon kerajaan sedunia berikutan
keadaan kewangan global yang semakin baik.
Prestasi Pasaran Kewangan dalam Bulan Mac
Sumber: Bank Negara Malaysia dan Bursa Malaysia
1.4
-17.4
0.5
-3.8
-13.0
-0.3
Ekuiti
(% perubahan)
MGS 10 tahun
(mata asas)
Ringgit
(% perubahan)
-20 -15 -10 -5 0 5
Mac 19 Feb 19
Permodalan sistem perbankan kekal kukuh
• Institusi kewangan berada pada kedudukan
yang kukuh untuk menghadapi kejutan
makroekonomi dan kewangan yang teruk. Hal
ini demikian kerana terdapat lebihan penampan
modal3 sebanyak RM154 bilion pada bulan Mac
2019.
• Modal CET-1 suku pertama 2019 meningkat
disebabkan terutamanya oleh perolehan
tertahan yang bertambah apabila beberapa
bank mengambil kira keuntungan tahun
kewangan berakhir tahun 2018.
Nisbah Kecukupan Modal
3 Merujuk modal yang melebihi keperluan jumlah modal minimum iaitu sebanyak
8% daripada aset berwajaran risiko
Sumber: Bank Negara Malaysia
13.7
14.4
18.0
8
9
10
11
12
13
14
15
16
17
18
Ap
r 1
6
Ju
l 1
6
O
kt
1
6
Ja
n
17
Ap
r 1
7
Ju
l 1
7
O
kt
1
7
Ja
n
18
Ap
r 1
8
Ju
l 1
8
O
kt
1
8
Ja
n
19
Nisbah Modal Ekuiti Biasa Kumpulan 1
Nisbah Modal Kumpulan 1
Nisbah Jumlah Modal
%
SIARAN AKHBAR
Ref. No.: 04/19/11 EMBARGO: Tidak boleh dicetak
atau disiarkan sebelum pukul
1500 hari Selasa, 30 April 2018
SOROTAN BULANAN – MAC 2019
Inflasi keseluruhan meningkat, mencerminkan terutamanya harga bahan api
dalam negeri yang lebih tinggi
• Inflasi keseluruhan meningkat kepada 0.2% (Februari: -0.4%) mencerminkan
inflasi pengangkutan yang mencatatkan kadar negatif yang menguncup
(Mac: -3.0%; Februari: -6.8%). Hal ini disebabkan oleh kenaikan harga
minyak sedunia yang seterusnya mengakibatkan harga bahan api dalam
negeri yang lebih tinggi.
• Inflasi dalam kategori lain secara relatif adalah stabil.
• Tidak termasuk kesan perubahan dasar cukai penggunaan, inflasi teras1 tidak
berubah pada 1.6%.
Perdagangan borong dan runcit meningkat lebih perlahan pada bulan Februari
• Indeks Perdagangan Borong dan Runcit (Index of Wholesale and Retail
Trade, IOWRT) bulan Februari meningkat lebih perlahan pada kadar 6.4%
(Januari: 7.9%), mencerminkan penurunan menyeluruh di kesemua segmen
utama.
• Segmen runcit kekal sebagai pemacu pertumbuhan yang utama,
mencerminkan penggunaan isi rumah yang terus kukuh.
• Walau bagaimanapun, pertumbuhan segmen borong terus menurun sejajar
dengan aktiviti perkilangan dan perdagangan yang lebih perlahan.
1 Pengiraan inflasi teras tidak termasuk barangan yang harganya tidak menentu dan
barangan yang harganya ditadbir. Pengiraannya juga tidak termasuk anggaran kesan
langsung perubahan dasar cukai.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
Pembiayaan bersih terus meningkat untuk menyokong aktiviti ekonomi
• Pembiayaan bersih2 mencatatkan pertumbuhan tahunan 5.5% pada bulan
Mac 2019 (Februari 2019: 5.8%). Pertumbuhan pinjaman terkumpul mampan
pada 4.9% (Februari 2019: 5.0%), manakala pertumbuhan bon korporat
terkumpul menjadi sederhana kepada 7.1% (Februari 2019: 7.9%).
• Pertumbuhan pinjaman perniagaan terkumpul meningkat sebanyak 4.1%
(Februari 2019: 4.3%), didorong terutamanya oleh pertumbuhan yang lebih
rendah dalam sektor pembinaan; kewangan, insurans, dan perkhidmatan
perniagaan, dan harta tanah.
• Pinjaman isi rumah terkumpul berkembang sebanyak 5.3%
(Februari 2019: 5.2%).
Prestasi pasaran kewangan domestik bercampur-campur di tengah-tengah
ketidakpastian global
• Pada bulan Mac, ringgit menyusut nilai sebanyak 0.3% berbanding dengan
dolar Amerika Syarikat (AS) dan ini turut dialami oleh kebanyakan mata wang
serantau (antara 0.5% hingga -1.7%). Susut nilai mata wang ini disebabkan
terutamanya oleh aliran keluar bukan pemastautin daripada pasaran ekuiti
berikutan sentimen yang lemah dalam kalangan pelabur akibat kebimbangan
terhadap prospek pertumbuhan global dan geopolitik dan juga faktor-faktor
dalam negeri. Berikutan itu, FBM KLCI merosot sebanyak 3.8%.
• Kadar hasil MGS 10 tahun menurun sebanyak 13 mata asas, didorong oleh
aliran masuk bukan pemastautin yang berterusan sebanyak RM2.7 bilion ke
dalam pasaran bon Kerajaan. Penurunan ini sejajar dengan trend menurun
kadar hasil bon kerajaan sedunia berikutan keadaan kewangan global yang
semakin baik.
Permodalan sistem perbankan kekal kukuh
• Institusi kewangan berada pada kedudukan yang kukuh untuk menghadapi
kejutan makroekonomi dan kewangan yang teruk. Hal ini demikian kerana
2 Pembiayaan bersih merujuk pinjaman terkumpul sistem perbankan [kecuali institusi
kewangan pembangunan (IKP)] dan bon korporat terkumpul.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
terdapat lebihan penampan modal3 sebanyak RM154 bilion pada bulan
Mac 2019.
• Modal CET-1 suku pertama 2019 meningkat disebabkan terutamanya oleh
perolehan tertahan yang bertambah apabila beberapa bank mengambil kira
keuntungan tahun kewangan berakhir tahun 2018.
Bank Negara Malaysia
30 April 2019
3 Merujuk modal yang melebihi keperluan jumlah modal minimum iaitu sebanyak 8% daripada
aset berwajaran risiko
190430 Monthly Highlights March 2019 - BMpp
Slide Number 1
Slide Number 2
190430 Monthly Highlights March 2019 - BM
SOROTAN BULANAN – MAC 2019
27 March 2019
TO WHOM IT MAY CONCERN
Tuan,
Supplementary Notice (No. 5) on Foreign Exchange Administration Rules
Following Bank Negara Malaysia’s (“Bank”) –
(a) Notices on Foreign Exchange Administration Rules issued on 28
June 2013 (“2013 Notices”);
(b) Supplementary Notice on Foreign Exchange Administration Rules -
Measures to Promote Development of Malaysian Financial Market
dated 2 December 2016 (“Supplementary Notice”);
(c) Supplementary Notice (No. 2) on Foreign Exchange Administration
Rules and Amendment to the Definitions of the Notices on Foreign
Exchange Administration Rules - Measures to Promote Development
of Malaysian Financial Market dated 2 May 2017 (“Supplementary
Notice (No. 2)”);
(d) Supplementary Notice (No. 3) on Foreign Exchange Administration
Rules – Measures to Promote Development of Malaysian Financial
Market dated 8 September 2017 (“Supplementary Notice (No. 3)”);
and
(e) Supplementary Notice (No. 4) on Foreign Exchange Administration
Rules dated 17 August 2018 (“Supplementary Notice (No. 4)”),
the Bank issues this Supplementary Notice (No. 5).
Part A – Hedging of foreign currency obligations
2. Effective 27 March 2019, a resident is allowed to buy foreign currency against
ringgit with a licensed onshore bank –
(a) on spot basis up to the aggregate of its six (6) months foreign
currency obligations; or
(b) on forward basis up to the aggregate of its twelve (12) months foreign
currency obligations,
at the time of entering into the contract to buy foreign currency against ringgit.
Page 2 of 5
3. For purposes of Supplementary Notice (No. 4) and this Supplementary Notice
(No. 5), “foreign currency obligations” refers to –
(a) foreign currency import payment with a non-resident;
(b) foreign currency loan repayment; and
(c) other current account transactions in foreign currency with a non-
resident.
Part B – Payment in foreign currency between residents
4. Effective 2 May 2019, a resident entity which is a Small and Medium
Enterprise (SME)1 and a net importer2 (“Resident Payee”) may receive payment in
foreign currency from a resident entity with foreign currency export earnings
(“Resident Payor”) for settlement of domestic trade in goods and services subject to
the following conditions:
(a) the payment is made using –
(i) the Resident Payor’s foreign currency funds in its Trade
Foreign Currency Account; or
(ii) proceeds from an approved foreign currency export trade
financing facility in accordance with Part A of Notice 2 of the
2013 Notices,
and shall not be sourced from conversion of ringgit by the Resident
Payor;
(b) the payment is made directly into the Resident Payee’s Trade
Foreign Currency Account; and
(c) the Resident Payor and Resident Payee have complied with the
requirements in the Appendix.
Funds which are allowed to be received under this paragraph 4 shall be referred to
as “Eligible Foreign Currency Payable” in this Supplementary Notice (No. 5).
1 as defined in the “Guideline for New SME Definition” issued by SME Corporation Malaysia in
October 2013 as amended from time to time and is available at http://www.smecorp.gov.my
2 Net importer means a resident entity with foreign currency import obligations which either does not
have foreign currency export earnings or its annual foreign currency export earnings are less than its
annual foreign currency import obligations.
Page 3 of 5
5. Effective 2 May 2019, a Resident Payor which is allowed to make payment in
foreign currency to a Resident Payee under paragraph 1 of Part A of Notice 4 of the
2013 Notices read together with paragraph 4 above may retain in its Trade Foreign
Currency Account held with a licensed onshore bank, foreign currency proceeds from
its export of goods up to the higher of –
(a) 25% of the export proceeds; or
(b) subject to paragraph 6 below, the Resident Payor’s aggregate of six
(6) months –
(i) foreign currency obligations; and
(ii) Eligible Foreign Currency Payable to Resident Payee,
that exist on the date of receipt of the export proceeds.
6. Subparagraph 5(b) is only applicable if the aggregate amount of existing
balance in the Resident Payor’s Trade Foreign Currency Account and proceeds
retained under subparagraph 5(a) is insufficient to meet the aggregate of the
Resident Payor’s six (6) months foreign currency obligations and Eligible Foreign
Currency Payable to Resident Payee that exist on the date of receipt of the export
proceeds.
Part C – Miscellaneous
7. This Supplementary Notice (No. 5) including the Appendix is issued by the
Bank in exercise of the powers conferred by sections 214(2), 214(5) and 261 read
together with Schedule 14 of the Financial Services Act 2013 and sections 225(2),
225(5) and 272 read together with Schedule 14 of the Islamic Financial Services Act
2013.
8. Following the issuance of this Supplementary Notice (No. 5) –
(a) paragraphs 7 of Part B of Supplementary Notice is amended
accordingly;
(b) paragraph 5 of Part A of Supplementary Notice No. 2 is revoked; and
(c) paragraph 2 of Part A of Supplementary Notice No. 4 is amended
accordingly.
9. This Supplementary Notice (No. 5) including the Appendix shall be read
together with the following:
(a) 2013 Notices;
Page 4 of 5
(b) Supplementary Notice;
(c) Supplementary Notice (No. 2);
(d) Supplementary Notice (No. 3); and
(e) Supplementary Notice (No. 4).
If there is any inconsistency between this Supplementary Notice (No. 5) and the
above documents, this Supplementary Notice (No. 5) shall prevail only to the extent
of such inconsistency.
Page 5 of 5
Requirements to undertake payment in foreign currency between residents
1. A Resident Payee shall be present at the receiving bank and shall –
(a) make a declaration that –
(i) the Resident Payee is an SME as defined in the “Guideline for
New SME Definition” issued by SME Corporation Malaysia in
October 2013 (as amended from time to time);
(ii) the Resident Payee does not have foreign currency export
earnings or its annual foreign currency export earnings are
less than its annual foreign currency obligations; and
(iii) the Resident Payee has invoiced or will invoice the Resident
Payor in foreign currency; and
(b) provide supporting documents as evidence of its six (6) months
foreign currency import obligations,
to its receiving bank.
2. A Resident Payor shall be present at the remitting bank and shall –
(a) make a declaration that the Resident Payor has foreign currency
earnings from export; and
(b) provide a copy of Resident Payee’s declaration under paragraph 1(a)
above,
to its remitting bank.
3. A Resident Payee and a Resident Payor shall make the declaration required
under paragraphs 1 and 2 respectively on an annual basis.
4. A Resident Payee and a Resident Payor shall provide a licensed onshore bank
with all documentary evidence required by the licensed onshore bank as part of its
customer due diligence process.
APPENDIX
| Press Release |
27 Mar 2019 | The 2018 Bank Negara Malaysia Annual Report | https://www.bnm.gov.my/-/the-2018-bank-negara-malaysia-annual-report | https://www.bnm.gov.my/documents/20124/65309/2018_AR_FSPSR_slides.pdf, https://www.bnm.gov.my/documents/20124/65309/2018_AR_FSPSR_slides_2pgLayout.pdf, https://www.bnm.gov.my/documents/20124/65309/ar2018_en.pdf | null |
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BNM Annual Report 2018
BANK NEGARA MALAYSIA
2018 ANNUAL REPORT &
FINANCIAL STABILITY AND PAYMENT SYSTEMS REPORT
27 MARCH 2019
In a nutshell…
Amid rising external headwinds, the Malaysian
economy to remain on a steady growth path in 2019
Downside risks to growth remain,
in an environment of heightened uncertainties
Safeguards are in place to navigate headwinds
2018, a year of resilience
despite multiple headwinds
Malaysia’s
GDP growth:
4.7%
1
High frequency indicators point to
slowing global economic activity going into 2019
Broad-based PMI moderation High global financial market volatility
Global Composite PMI (Manufacturing and Services)
Index
Sources: Haver, Bloomberg, Economic Policy Uncertainty, and BNM estimates
L
CBOE Volatility Index (VIX)
Index
52.7
50.4
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
Advanced Economies
Emerging Markets
> 50 = expansionary
Elevated policy uncertainty Volatile commodity prices
Global Economic Policy Uncertainty Index
Index, 3 mma
Brent Crude Oil Price
USD/bl
12.9
25.0
15.2
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
80.6
64.4
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
129
298
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
2
Against this backdrop, how will the
Malaysian economy fare in 2019?
Malaysia’s
GDP growth:
4.7%
Baseline growth to remain steady between 4.3% - 4.8%
3
…supported by:
Malaysia’s
GDP growth:
4.7%
Sources: Department of Statistics, Malaysia and Staff estimates
6.8
5.7
2018 2019f
Services
VA, %yoy
-
1.0
1.8
2018 2019f
Commodities
VA, %yoy
5.0
4.8
2018 2019f
Manufacturing
VA, %yoy
8.1
6.6
2018 2019f
Private
Consumption
Real, %yoy
4.5
4.9
2018 2019f
Private
Investment
Real, %yoy
6.8
3.4
2018 2019f
Gross Exports
%yoy
Continued demand from
major trade partners
Resilient
private sector spending
Recovery in commodity sectors amid
continued expansion in key economic sectors
4
Private sector spending to remain resilient,
in the absence of major shocks
5
Annual Real Private Expenditure Growth
Multiple
shocks*
%yoy
Dotcom
Bubble
*Multiple shocks refer to GST, oil price decline, MYR depreciation, layoffs and low Oil & Gas income growth
Source: Department of Statistics, Malaysia
6
-10
-4
2
8
14
20
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP Real Private Expenditure
Global
Financial
Crisis
Average 2000 - 2018: 7.4%
Special payments to
civil servants/pensioners (4Q)
Updated
Factors Supporting Household Spending
Source: Department of Statistics, Malaysia
Targeted measures to alleviate cost of living for lower-income households
Lift from temporary measures is diminishing, but fundamental drivers remain supportive
Private consumption to normalise, but remains firm
2018 2019
Tax holiday (Jun-Aug)
Fuel price stabilisation (2Q ‘18-2Q ‘19)
Strong sentiments (2Q-3Q)
Continued income and employment growth
Price ceiling on
retail fuel prices
1 Higher minimum wage2 Bantuan Sara Hidup
cash transfer
3
7
Updated
Private Sector Wages
Annual change, %
Industry Insights on Labour Outlook
Malaysian Employers Federation Salary Survey
BNM Regional Economic Surveillance
% of firms indicating change in headcount (2019)
4.9 4.9
2.2 2.0
4.9 4.9
2.1 2.0
Exec Non-Exec Exec Non-Exec
Increment
(% increase)
Bonus
(months of pay)
2018 2019f
56
36
8
Sustained Higher Lower
P Preliminary
Note: Private sector wages is derived from the salaries and wages data published in the Monthly Manufacturing Statistics and Quarterly Services Statistics by the Department of Statistics,
Malaysia. It covers 63.5% of total employment.
Sources: Department of Statistics, Malaysia, 2018 MEF Salary Surveys for Executives and Non-Executives, and BNM’s industrial engagements (Sep. 2018 - Feb. 2019)
0.7
2.0
2.5
2016 2017 2018p
4.3
6.4
6.0
2016 2017 2018
Employment
Annual change, %
8
Stable labour market outlook, corroborated by
employer surveys and industrial engagements
Despite the uncertain environment,
firms continue to invest
Malaysia’s
GDP growth:
4.7%
Baseline growth to remain steady between 4.3% - 4.8% Optimism
threshold
=100
Vistage-MIER CEO Confidence Index
Points
Sentiments softened amid
increased uncertainty
2Q-18 3Q-18 4Q-18
MIER Business Conditions Index
Points
116.3
108.8
95.3
106.9 107.1
95.8
Source: MIER and Vistage-MIER
9
Investment approvals have risen significantly,
focusing on capacity and efficiency enhancements
32.9
11.2
9.6
13.1
1.9
18.7
Petroleum Products
MIDA Manufacturing Investment Approvals (2018)
RM billion
Total
2018 | RM87 bn
2017 | RM64 bn
Electrical & Electronics
Rubber & Chemicals
Basic metal
Transport
Others*
M&E spending on automation to enhance production efficiency,
particularly in the E&E and primary-related sub-sectors.
Services
Continued capacity expansions to meet demand,
including in the transport, storage, and communication sub-sectors.
*Includes machinery and equipment, plastics, textiles, food, fabricated metal, non-metallic mineral and paper industries
Source: MIDA
10
Private sector financing supportive of economic activity
*Comprises gross loans from the banking system and DFIs, and funds raised from the capital markets (excludes issuances by Cagamas and non-residents)
Source: Bank Negara Malaysia
Record growth in loans disbursed since 2014 at 7.3%
Levels of Gross Financing to Businesses and Households*
RM billion
749.9
335.4
124.4
Loans Disbursed to Businesses Loans Disbursed to Households Funds Raised via Capital Markets
706.2
317.7
86.2
794.4
357.9
95.1
2016
RM1,110 bn
2017
RM1,210 bn
2018
RM1,247 bn
11
Growth in Total Loans Disbursed by the Banking System and DFIs
-1.2% 5.0% 7.3%
**Loans from the banking system and DFIs
Source: Bank Negara Malaysia
Across Business Segments
261
438
307
487
SMEs Non-SMEs
Avg. 2013-2017
2018
Across Selected Economic Sectors
209 203
68
237 231
89
Manufacturing Wholesale and retail trade,
restaurants, and hotels
Construction
Higher loans were disbursed
across all business segments and most economic sectors in 2018
Loans Disbursed**
RM billion
RM billion
12
Financing by banks remain strong
Source: Bank Negara Malaysia
4.8% in 2018
in 20173.9%
7 – 8%
*Refers to outstanding total loans from banks and non-banks
Higher total loan growth in 2018*…
…with banks continuing to target higher loan growth in 2019
targeted growth in outstanding bank loans**
**Based on a weighted average of 17 banks’ internal loan growth targets
from responses to an internal survey on banks. The 17 banks represent
87% share of total banking system loans as at 2018.
13
However, banking system loan applications moderated
towards end-2018, while loan approvals remained stable
RM billion
RM billion
66.7
68.7
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
34.4
31.8
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Monthly Average 2013 - 2017
Monthly Average 2013 - 2017
Loan Applications^ (3mma)
Loan Approvals^ (3mma)
14
^Refers to banking system data only
Source: Bank Negara Malaysia
SME financing remains a key strategic focus
of financial institutions…
SMEs represent a primary customer
segment for financial institutions
Source: SME Finance Survey 2018, Bank Negara Malaysia.
1 Increased competition
2 Fluctuating demand
3 Rising input cost
4 Rising labour cost
5 Labour shortage
6 Retaining labour
7 Maintaining cash flow
9 Government regulation
8
Difficulty
accessing financing
SMEs’ ranking
of factors
constraining
growth
(from most
to least
constraining)
Enhanced access to financing has contributed
to lower constraints faced by SMEs
15
of business
financing accounts
financing
disbursed
financing applications
approved
87%
RM
307bil
3 in 4
More than
123,000
financing applications
approved
…with various ongoing efforts to
enhance the financing ecosystem
to support SME growth
Credit Guarantee Corporation/ Syarikat Jaminan Pembiayaan
Perniagaan guarantee schemes and BNM’s Fund for SMEs
Skim Pembiayaan Mikro
imSME Online Financing Referral Platform
Access to information, advisory and redress
at BNMLINK and other relevant agencies*
Small Debt Resolution Scheme
Access to financing and financial services at 40 financial institutions
16
*SME Corporation Malaysia and Credit Guarantee Corporation
Growth prospects also lifted by
recovery from supply disruptions…
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
Turnaround in both mining and agriculture sectors to support production and export growth
Commodity: Contribution to GDP Growth
ppt contribution to headline GDP
0.1 0.1
-0.12
0.1
0.2
0.6
-0.04
0.2
2011-17 2017 2018 2019f
Mining Agriculture
+0.7
-0.16
+0.3
+0.3
Mining
(7.9% of GDP)
Recovery of natural gas operations
in East Malaysia
Agriculture
(7.8% of GDP)
Improvement in palm oil yields amid waning
impact from adverse weather
17
Primary-
related
(69%)
E&E
(15%)
Transport (incl.
aerospace)
(6%)
Others
(10%)
…and
new manufacturing production facilities
Note: The manufacturing sector accounts for 23% of GDP in 2018
Source: Staff estimates based on news flow and industrial engagements
Additional production capacity in primary-related and E&E sub-sectors to support growth
Oil and Gas Value Chain
Deepen domestic economic
complexity by producing high value-
added specialty chemicals in
the longer term
Upstream
Midstream
Downstream
47% increase in refined petroleum
capacity
Contribution from RAPID
upon full capacity
2019 Sales Projection of New Manufacturing Capacity
% share of total
18
Malaysia’s Gross Export Growth
2019f | 3.4%
2018p | 6.8%
Loss from trade tension
(in baseline)
Potential gain from trade diversion*
(not in baseline)
-0.6 to -1.0
+0.1 to +0.4
Ppt. Contribution to Gross Export Growth
*Potential gain from trade diversion is more likely to occur if the products already account for a significant share of US import market and manufacturers have the capacity to ramp up production
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
19
Continued expansion in exports
amid more moderate global growth and trade activity…
Semiconductor
26%
Other E&E1
19%
Petroleum
products
9%Chemicals
7%
Metal
products
5%
Machinery &
equipment
5%
Other
Non-E&E2
28%
Breakdown of Manufactured Exports (2018)
%share of total manufactured exports
Despite global tech downcycle, increased capacity allows firms
to tap into global demand for growing product segments
Automotive
Medical
Increasing use of electronics in vehicles
Spurred by semiconductor use in medical devices
Chemicals
Rubber
products
Growing demand for specialty chemicals
Rising demand in medical industry
1 Other E&E include office and automatic data processing machines, electrical machinery & parts and telecommunication equipment
2 Major components include optical & scientific equipment, processed food, palm oil-based manufactured products, rubber & wood products, transport equipment
Note: Numbers may not add up due to rounding
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
20
…supported by diversified manufacturing base
and capacity expansions
Headline, Core and Transport Inflation
Is Malaysia suffering from deflation?
21
0.2
-0.7
-0.4
1.6 1.5 1.6
-12
-8
-4
0
4
8
-1
0
1
2
May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19
Core inflation*
Headline inflation
Transport inflation (RHS)
% %
Core inflation remained relatively
stable amid sustained domestic
demand conditions
*Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the estimated direct impact of consumption tax policy changes
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Recent negative headline inflation due mainly to lower
fuel prices, not a sharp deterioration in demand conditions
% of CPI items
125
100
75
50
25
0
25
50
75
100
125
May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19
Tax holiday period
Average of 22% experienced
m-o-m price increase
Price decline
Unchanged
Price increase of
up to 0.3%
Price increase
exceeding 0.3%
Jan – Feb 2019
Average of 51% experienced
m-o-m price increase
22
**Based on the month-on-month inflation for 125 CPI items at the 4-digit level
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Relatively stable share of CPI items recording price increases
in recent months despite negative headline inflation
Pervasiveness based on month-on-month (m-o-m) inflation of CPI items**
*Average prices of UK Brent, West Texas Intermediate, and Dubai Fateh as forecasted by the IMF in its January 2019 update to the World Economic Outlook
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
2015 2016 2017 2018 2019f
1.0
Headline Inflation
Annual change (%)
1.7
0.7
3.7
Headline inflation in 2019 is projected to average between
Underlying inflation is expected to be sustained
Steady expansion in economic activity, absence of strong demand pressures
0.7% – 1.7%
Pass-through from …
…offset by impact from:
Domestic cost factors, including
those arising from policy measures
Lower global oil prices
*Average oil prices 2019f: USD59/barrel; 2018: USD69/barrel
Price ceilings for domestic fuel until mid-year
RON95 petrol: RM2.08/litre; Diesel: RM2.18/litre
23
2.12.1
Households in urban areas, such as KL face a larger increase in cost of living relative to others
KL
0.2%
(1.4%)
Peninsular Malaysia
Jan-Feb 2019: -0.5% (2018: 1.0%)**
Headline Inflation by Geographical Region
**Numbers in parentheses refer to 2018 average inflation.
^Bank Negara Malaysia uses the term 'living wage' to mean income from all sources besides wages, such as non-wage work benefits and social assistance
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Sarawak
-1.2%
(0.6%)
Sabah & WP Labuan
-1.0%
(0.7%)
Living Wage^ Estimates in KL in 2016 (RM per month)
Single adult
RM2,700
Couple without children
RM4,500
Couple with two children
RM6,500
Households would need to earn an income that supports a minimum acceptable living standard
24
While headline inflation is subdued, cost of living concerns
continue to affect certain segments of society
Longer-term structural policies to boost productivity & income
growth are needed to support higher standard of living
Productivity perspective
Equity perspective
Workers receive a
lower share of national income
Capital intensity
USD ‘000 PPP per worker
Labour income share
%share of GDP
128.9 301.6
35.2 52.7
Malaysian wages are below their
actual productive worth
Malaysia
*Benchmark used is an average of advanced economies: US, UK, Australia, Germany, Singapore
Source: Department of Statistics, Malaysia and CEIC
Benchmark economies*
For an output
worth $1000
paid
$340
Malaysia is less capital intensive -
labour plays a larger role…
…yet workers earn a lower
share of income
paid
$510
25
Insufficient creation of high-skilled,
high-paying jobs
Low-skilled jobs are created faster
than mid- and high-skilled jobs…
… due to expansion in labour-
intensive and low wage industries
Notes:
1. Data for median wage levels are as at 2016 as Malaysia’s 2017 salaries and wage data only represents citizens
2. To facilitate readability, 'jobs' in this slide is in reference to 'net employment gains', derived from the Labour Force Survey
Source: Bank Negara Malaysia estimates using data from Department of Statistics, Malaysia
High-skilled
i.e. managers, professionals,
and technicians
Low-skilled
i.e. elementary occupations
Mid-skilled
i.e. clerical support, service
and sales workers
Growth of Total Employment (CAGR)
(2010-2017)
+2.5%
+4.6%
Construction
Sectoral GDP Growth and Median Wage Levels
(2011 – 2017)
Median wage:
RM1,560
9.6%
Wholesale & Retail, F&B
and Accommodation
Median wage:
RM1,394
6.6%
Total Economy
Median wage:
RM1,703
5.2%
+2.8%
26
2019
Higher downside risks to growth in 2019…
Baseline: 4.7%
Some Upside Risks
Higher Downside Risks
27
…arising mainly from external uncertainties
• Sharper moderation in global demand
• Escalation of trade tensions
• Disruption in global financial markets
• Weaker-than-expected commodity prices and production
• Resilient private sector spending
• Receding supply disruption and capacity expansions
• Continued demand from major trade partners
• Lower-than-expected inflation
• Resolution of trade disputes
28
Policy priority is to ensure orderly adjustments
in the exchange rate and financial markets
Non- Resident Portfolio Flows and Performance of Ringgit and Regional
Currencies against the US Dollar
* Year-to-date as at 22 March 2019
Note: Regional countries include PR China, Indonesia, South Korea, Philippines, Singapore, Taiwan and Thailand
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
Ringgit flexibility has allowed the Malaysian
economy to better withstand external shocks
-1.8%
Despite the outflows in 2018, ringgit movements remain orderly and in line with
regional currencies, owing to the policy configuration in place
-3.6%
1.9%
0.9%
MYR/USD
Regional
Average
MYR/USD
Regional
Average
2018
2019*
29
The Bank will continue to ensure that
adjustments in the ringgit exchange rate
remain orderly and not excessively volatile
Broad policy toolkit to manage emerging risks,
including targeted prudential policies and
financial market measures
Non-Resident Portfolio
Flows (USD billion)
2018: -8.9
2019*: +1.7
Updated
Deep domestic financial markets would ensure orderly
movements in domestic asset prices amid volatile capital flows
Note: Regional countries include PR China, India, Indonesia, South Korea, Philippines, Singapore and Thailand
Source: Bloomberg
Despite volatility, adjustments in the domestic financial markets remain broadly contained,
supported by well-developed financial markets and diversified investor base
Majority of non-residents holdings
are by long-term investors
Presence of large domestic
investor base
Availability of hedging instruments
and flexibilities
30
10-year
Government
Bond Yields
Equity Market
Performance
Index (Jan 18 = 100)
Index (Jan 18 = 100)
90
100
110
120
90
95
100
105
110
Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19
Regional average
Malaysia
Regional average
Malaysia
Import Local production chain
Flexibility to hedge longer term obligations
(Effective immediately)
1
Foreign exchange administration liberalisation to enhance
businesses’ hedging flexibilities…
1/ Current account obligations include imports of goods and services as well as profits, dividends and interests
SME: Small and Medium Enterprise
31
Residents can extend hedging of foreign currency exposures on current account
obligations1 and loan repayment up to 12 months
Benefit
Allow residents to better manage their foreign currency exposure for longer tenure
Exportchain
Resident exporters can make payment in foreign currency to resident SMEs (net importers)
for settlement of domestic trade in goods and services upon one-off registration with respective banks
Benefit
Allow SMEs which are net importers to achieve ‘natural hedge’, thus minimising foreign exchange risks
…for better foreign exchange risk management
2
32
Flexibility for SMEs with import obligations to receive payment in foreign currency
(Effective 2 May 2019)
Source: Bank Negara Malaysia, IMF, and World Bank
External debt is driven by
country-specific factors
33
Large presence of foreign
banks & MNCs
Extensive regional footprint
of domestic banks
Deep & liquid domestic debt market with
high non-resident participation
FCY exposure (68.9%) is subjected to
prudential and hedging requirements
Ringgit-denominated (31.1%)
not affected by currency fluctuations
Non-resident
holdings:
20% of total
external debt
External Debt
as at end-2018:
64.7%
of GDP
*Current account excluding interest payments to non-residents
Note: FCY refers to foreign currency
Source: Bank Negara Malaysia
58
61
64
77
56
External Debt Simulation:
Rise in Debt Level After Each Shock
(as at end-2023, % of GDP)
Baseline External Debt (2023)
Interest rate shock
(0.7ppt higher than baseline)
Exchange rate shock
(14.9% depreciation)
GDP growth shock
(2.4ppt lower than baseline)
Current account* shock
(4.3ppt lower than baseline)
64.0%
Intragroup
exposures
47%
Banks’
external
debt
Non-intragroup
53%
FCY liquid
assets
RM136 bn
FCY External
debt-at-risk
RM64 bn
FCY External debt
RM324 bn
FCY external assets
RM931 bn
Other debt
25%
MNCs’
external
debt
Intercompany
borrowings
75%
Banking Institutions Corporations
External risks are well-mitigated by debt profile
and the availability of external buffers
34
Baseline growth to remain steady between 4.3% - 4.8%
How will monetary policy support
sustainable growth with price stability
in 2019 and 2020?
35
• Close monitoring of global and domestic developments for the potential
impact to domestic growth, inflation and financial conditions is key
– Monetary policy considerations are complex and multifaceted
• Monetary operations will continue to ensure sufficient liquidity to support
financial intermediation activity
• At the current level of OPR, the stance of monetary policy remains
accommodative and supportive of economic activity
2.75
3.00
3.25
3.00
3.25
2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Bank Negara Malaysia
Overnight Policy Rate, %
36
Final Analysis
GDP to grow between 4.3 – 4.8%, anchored by private
sector spending, capacity expansion and commodity
recovery
Economic
outlook
Risks
Downside risks remain, mainly from trade tensions,
global slowdown, and tightening in global financial
market conditions
Policy
space
Sound fundamentals, facilitative policies, and sufficient
buffers allow Malaysia to face headwinds from a
position of strength
37
Diversified
Economic Structure
Facilitative
Policies
Sufficient
Financial
Buffers
• Diversified trade, economic sectors and investments
• Private sector-led economy
• Business-friendly environment
• Accommodative monetary
policy
• Macroprudential measures
• Targeted Govt. measures to
households
• Deep financial markets
• Flexible exchange rate
• Adequate international reserves
• Sustained current account surplus
(2019f: 1.5 – 2.5% of GNI)
Solid economic foundation to support steady growth
38
Bank Negara Malaysia:
Financial position remained stable in 2018
RM447.64 billion
RM7.52 billion
Total Assets
International
Reserves
Net Profit
Dividend paid
to the Government
RM419.57 billion |
USD101.4 billion
RM2.5 billion
39
411
Gold and Foreign Exchange
Other Assets
Loans and Advances
SDR
Land and Buildings
IMF Reserve Position
MGS
Deposits with Fis
Liabilities
316
Capital
132
Financial Position (as at 31 December 2018)
RM billion
RM billion
Assets
Capital &
Liabilities
Total Income
9.33
Taxation
0.04Development
Expenditure
0.42Recurring
Expenditure
1.35
Net Income
7.52
Income and Expenditures
(year ended 31 December 2018)
40
BANK NEGARA MALAYSIA
2018 FINANCIAL STABILITY AND PAYMENT SYSTEMS REPORT
41
Financial stability
was preserved
in 2018
Continued public
confidence in the
financial system
Orderly
functioning of
financial markets
Effective
financial
intermediation
process
42
Strong and resilient financial institutions
continue to underpin domestic financial stability
Banks’ excess
total capital
RM115 bil
Liquidity
coverage ratio
143%
Loan loss
coverage ratio
98%
(2017: 135%)
(2017: RM124 bil)
(2017: 82%)
* Excess total capital refers to total capital above the regulatory minimum, which includes the 2018 capital conservation buffer requirement and bank-specific
higher minimum requirements.
Source: Bank Negara Malaysia
43
Capital ratios of banks and insurers above
regulatory minima even under simulated stress scenarios
Source: Bank Negara Malaysia
*cumulative shock across stress test horizon (4 years)
1 AS1: Adverse Scenario 1
2 AS2: Adverse Scenario 2
13.1 12.4
10.56*
2.54
1.5
GFC
AFC
Simulated GDP
shocks more
severe than past
stress events
Standard deviations from
long-term growth
AS11
AS22
CET1 capital ratio, % (banks)
76%
Capital adequacy ratio, % (insurers)
13.1
12.4
10.5
Banks
111
CET1 capital ratio (banks)2018 1…1…1…
CET1 capital ratio (banks)AS1 AS2
Pre-shock Post-shock
244
221
174
244
221
174
97%
Insurers
A significant portion of capital is in the form of
high quality loss-absorbing instruments
Minimum regulatory
requirement: 4.5%
130%
44
Financing activity has continued to support banks’ profits…
Source: Bank Negara Malaysia
68% of income attributable to
financing activities
Improvement in interest margins driven
by continued efficiency gains
2.08 2.11 2.12
Gross interest margin (%)
2016 2017 2018
45.8 44.8 44.6
Cost-to-income ratio (%)
45
…with profitability levels largely in line with rating and
regional peers
* Includes off-balance sheet items
Source: Bank Negara Malaysia
1.4%
Return on assets
(2017: 1.5%)
12.6%
Return on equity
(2017: 13.0%)
5.6%
Loan growth
2.9%
Pre-tax profit
Although profits grew at a
slower pace compared
to business activities
Total assets* Total equity
3.6%
5.9%
2018 annual growth
2018 annual growth
46
Household debt remains elevated,
but risks to financial stability
are contained…
Annual Growth
Share of Borrowings by
Vulnerable Borrowers
19.3%
(2017: 19.9%)
(2014: 24.3%)
Aggregate Impairment
Ratio
Financial Asset-to-Debt
Ratio
4.7%
(2017: 4.9%)
Debt
Expansion in household debt more in line with income
and supported by comfortable financial buffers
Financial institutions’ asset quality improved, coupled with
declining share of exposures to the vulnerable segment
2.1
times
1.2%
(2017: 1.4%)
6%
(2017: 6.4%)
Income
5%
(2017: 8.4%)
Financial
assets
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
47
2015 2018
56.5 57.1
improve the financial well-being of households
…with continued efforts to
Ensuring fair and transparent
practices in the repricing of retail
loans following missed or late repayments
Prohibiting unfair terms &
conditions in housing loan contracts
and use of plain language for
housing loan agreements
Helping borrowers with persistent
credit card debt to reduce financing
charges and payoff their debt faster
Fair treatment of consumers Elevating financial literacy
Low overall Malaysia Financial Literacy and
Capability Index
National Strategy for Financial Literacy
to drive actions to improve financial
capability
48
Imbalances in the housing market
are expected to gradually improve…
~171,000
1
unsold
residential units
1 Oversupply of higher-end housing
2
Slower house price growth and rebalancing
of supply will improve affordability
3
Firm demand for affordable homes further
supported by various initiatives
75%
2
(2016: 66%)
new housing launches priced
below RM500,000
Bank Negara RM1 billion
fund for Affordable Homes
Home Ownership Campaign
to clear unsold properties
Target to build 1 million
affordable homes in next 10 years
Stamp duty exemptions
1 As at 3Q 2018 2 Housing launches between 1Q and 3Q 2018
Source: Department of Statistics, Malaysia, National Property Information Centre, Government Budget 2019 and news flows
6.8
2012 - 2014 2014 - 2016
House price
growth
26.5%
Income
growth
12.4% 5.7% 6.8%
(2014 – 2016)(2012 – 2014)
74%
priced above
RM300,000
39%
priced above
RM500,000
49
…while
oversupply of office and retail space
to persist
Incoming Retail Supply
Johor
13.5 mil sf
94% of existing supply
Klang Valley
Penang
46.9 mil sf
67% of existing supply
9 mil sf 2
65% of existing supply
About 144 malls1 are expected to enter
the key states from 2019 onwards
Note:
1 Malls include shopping complexes and hypermarkets
2 Mil sf refers to million square feet
Source: Jones Lang Wootton
However, banks’ exposures to the
office space and shopping
complexes segment remain small
3.4%
6.5%
of banks’ total
outstanding loans
of banks’ holding of
corporate bonds and sukuk
Source: Bank Negara Malaysia
50
Businesses continue to maintain
comfortable debt servicing and liquidity positions
despite more challenging conditions…
Business activity continued to be primarily
supported by domestic financing
1
1998 2017 2018
131.7%
102.9% 103.7%
Non-financial Corporate
Debt-to-GDP Ratio
Domestic loans/
financing
Domestic bonds/
sukuk
External debt
Overall debt servicing and liquidity positions
comfortably above prudent thresholds
2
Interest
coverage ratio
Cash-to-short-
term debt ratio
7.2x
1.6x
Prudent threshold:
2 timesPrudent threshold:
1 time
Source: Bank Negara Malaysia, Department of Statistics, Malaysia and Bloomberg
51
*Based on BNM survey of approved bonds, notes and loans between 2015 and 2018
…with limited risks to financial stability
are medium- to long-term in nature
Low rollover risks
are intercompany loans
Typically has flexible and
concessionary terms
of approved offshore borrowings are
hedged*
Lower risk to exchange rate volatility
76%
35%
75%
Potential losses from large borrower groups
only account for about one-third of banks’
excess capital
4Risks from external borrowings
are mitigated
3
30%
Depreciation in ringgit
50%
Decline in operating profit
50 bps
Increase in cost of RM borrowings
100 bps
Increase in cost of FCY borrowings
Shock parameters
52
What is the direction of risks
in 2019?
Malaysia’s
GDP growth:
4.7%
Stable overall financial stability outlook,
risks remain manageable
53
Pockets of risks continue to persist, but households largely
buffered by stable income and employment prospects
Healthy overall debt servicing and liquidity positions despite
continued challenging conditions for oil and gas, property and
construction sectors
Banks expected to remain resilient, even under adverse
macro-economic and financial conditions
Households
Financial Markets
Financial Institutions
Businesses
Unsold housing units may rise in the near term amid continuing
adjustments in supply towards more affordable segments. Risks
remain elevated in the office space and shopping complex segment
Property
Disorderly adjustments in global financial markets, unresolved trade tensions and geopolitical
events may trigger outflows. Strong domestic institutional investors and further development of
the onshore FX market will continue to support orderly market conditions
54
Enhanced supervisory stress
testing
• Integrated and multi-year stress
scenarios
Strengthening crisis
preparedness
• Recovery planning
• Business continuity management
Strengthening
cyber resilience
• Risk Management in Technology
(RMiT)
Implementation of Basel III
standards and global reforms
• Net Stable Funding Ratio (NSFR)
• Domestic Systematically Important
Banks (D-SIBs)
Regulatory and supervisory activities will continue to focus on
strengthening financial sector resilience against emerging risks…
55
…and safeguarding the integrity of the financial system against threats
posed by money laundering and terrorism financing
Upgrade to full compliance
for 4 Financial Action Task
Force (FATF)
Recommendations1 for
Malaysia
1. Study introduction of Cash Transaction Limit
2. Accelerating migration to e-payments
Enhancements in the
Preventive Framework
Increased
compliance
1
Moving
forward
Mitigate
abuse of cash
2
Reduction in the
requirement for cash
threshold report from
RM50,000 to RM25,000
Strengthened
enforcement
3
Enhancements to the
Money Services Business
(MSB) Act to address
illegal MSB activities
1 The following recommendations have all been upgraded to fully compliant: Rec.5 Terrorism Financing Offence, Rec.7 Targeted Financial Sanctions (Proliferation
Financing), Rec.32 Cash Couriers, and Rec.34 Guidance
Enhanced
surveillance
4
Usage of data analytics to
enhance the supervision
of ML/TF risks and
effectively regulate money
services businesses
56
*United Nations Capital Development Fund
Collaboration with selected financial
institutions, fintech firms and
relevant agencies
Standardised specifications for
open application programme
interfaces (APIs)
Technology in inclusive finance
Accelerator Programme
Accelerate solutions to improve
financial services
Facilitating developments in
financial technology…
57
…with further acceleration in the migration to e-payments
Mobile Payments
42.4 million
mobile phone subscriptions
(76% smartphones)
65,000+
Registered merchants
20x
Increase in payments for
purchases
42.5 million
Number of debit cards
514,818
POS terminals
51.5%
Growth in debit card
transactions
Debit Cards
Instant payments via mobile, NRIC
or business registration number
(Live since 8 December 2018)
Unified QR code for merchants to
accept payments (2H 2019)
2019
Roll-out of interoperable mobile
payment solutions
Source: Bank Negara Malaysia
58
End of Presentation
Q&A Session
Additional Slides
Real GDP
by Expenditure
(Annual change, %)
2018 share1
(%)
2018 2019f
Domestic demand 92.9 5.6 4.4
Private Expenditure 72.8 7.2 6.2
Consumption 55.5 8.1 6.6
Investment 17.4 4.5 4.9
Public Expenditure 20.1 0.1 -1.8
Consumption 12.8 3.3 1.2
Investment 7.3 -5.2 -7.1
Net Exports 8.4 13.4 0.1
Exports 70.6 1.5 0.1
Imports 62.2 0.1 0.0
Real GDP 100.0 4.7 4.3-4.8
1 Numbers may not add up due to rounding and exclusion of import duties
p preliminary
f forecast
Source: Department of Statistics, Malaysia, Bank Negara Malaysia
Real GDP
by Economic Activity
(Annual change, %)
2018 share1
(%)
2018p 2019f
Services 55.5 6.8 5.7
Manufacturing 23.0 5.0 4.8
Mining & Quarrying 7.9 -1.5 0.8
Agriculture 7.8 -0.4 2.8
Construction 4.5 4.2 3.0
Real GDP 100.0 4.7 4.3-4.8
Private domestic demand remain a key driver of growth
Add. Info
1
Multiple
shocks*
Annual Real Private Consumption Growth
%yoy
Dotcom
Bubble
Annual Real Private Investment Growth
Dotcom
Bubble
Global
Financial
Crisis
Multiple
shocks*
% yoy % yoy
-3
3
9
15
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP Real Private Consumption
Global
Financial
Crisis
Average ‘90 – ‘18:
6.7%
-30
0
30
60
-6
-3
0
3
6
9
12
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP (LHS) Real Private Investment (RHS)
Average ‘90 – ‘18:
8.1%
In the absence of major shocks, private sector spending to
remain resilient
*Multiple shocks refer to GST, oil price decline, MYR depreciation, layoffs, and low oil and gas income growth
Source: Department of Statistics, Malaysia
Add. Info
2
8.9
7.2
-5
20
45
70
95
120
145
-2
2
6
10
14
18
22
1Q08 2Q09 3Q10 4Q11 1Q13 2Q14 3Q15 4Q16 1Q18
Despite moderate sentiments, private consumption growth
to remain firm
Optimism threshold =100
MIER Consumer Sentiment Index (RHS)
Post-
Election
Strong
external
demand
Less optimistic consumer sentiments may not necessarily reflect weaker actual spending
Real private consumption
(‘90-’18 avg.: 6.7%)
*Multiple
shocks
Index
%yoy
Global
Financial
Crisis
*Multiple shocks refer to GST, oil price decline, MYR depreciation, layoffs, and low oil and gas income growth
Source: Department of Statistics, Malaysia, MIER
Add. Info
3
L
Exports to continue to register positive growth
Annual change (%) 2018 share (%) 2012-2017 average 2018p 2019f
Gross Exports 100 5.2 6.8 3.4
RM billion - 781.2 998.3 1,032.5
Manufacturing 84 7.2 9.1 4.8
Commodities 16 -1.9 -3.2 -4.6
Gross Imports 100 6.7 4.9 4.5
Trade Balance (RM billion) - 88.0 120.5 114.9
p preliminary
f forecast
Source: Department of Statistics, Malaysia, and Bank Negara Malaysia
Add. Info
4
Current account of the balance of payments remains in
surplus
Item (Net)
2016 2017 2018p 2019f
RM million
Goods1 102,046 116,766 121,362 116,167
Services -18,917 -22,815 -19,700 -19,825
Transportation -23,459 -29,561 -27,757 -29,347
Travel 31,515 32,882 28,853 28,928
Other services -26,309 -24,738 -19,921 -18,510
Government transactions n.i.e -665 -1,399 -875 -896
Balance on goods and services 83,128 93,951 101,662 96,342
Primary income -34,592 -36,354 -49,377 -50,186
Compensation of employees -5,606 -4,773 -7,793 -7,918
Investment income -28,986 -31,581 -41,584 -42,268
Secondary income -18,629 -17,322 -18,780 -18,150
Balance on current account 29,907 40,275 33,505 28,005
% of GNI 2.5 3.1 2.4 1.5 - 2.5
1 Adjusted for valuation and coverage of goods for processing, storage and distribution
p preliminary
f forecast
Source: Department of Statistics, Malaysia, and Bank Negara Malaysia
Add. Info
5
1 In accordance with the Sixth Edition of the Balance of Payments and International Investment Position Manual (BPM6) by the International Monetary Fund (IMF), unless stated otherwise
p preliminary
Source: Department of Statistics, Malaysia; and Bank Negara Malaysia
Financial account of the balance of payments recorded a
net inflow in 2018
Item1 (Net)
2016 2017 2018p
RM million
Direct Investment 13,792 16,171 11,341
Assets -42,246 -24,234 -23,290
Liabilities 56,038 40,405 34,632
Portfolio Investment -14,203 -15,358 -44,402
Assets -15,009 -19,442 -9,112
Liabilities 806 4,084 -35,290
Financial Derivatives -802 -197 971
Other Investment 964 -5,346 50,699
Balance on Financial Account -249 -4,730 18,609
Direct Investment (BPM5 Convention)
Direct Investment Abroad -33,233 -24,248 -21,307
Foreign Direct Investment 47,025 40,419 32,648
Add. Info
6
Banking System
- Key Financial Soundness Indicators
As at
Banking System
2014 2015 2016 2017 2018p
% (or otherwise stated)
Total Capital Ratio 15.9 16.6 16.5 17.8 17.4
Tier 1 Capital Ratio 14.0 14.2 14.0 14.9 13.9
Common Equity Tier 1 Capital Ratio 13.3 13.3 13.1 14.0 13.1
Return on Assets 1.5 1.3 1.3 1.5 1.4
Return on Equity 15.2 12.3 12.5 13.1 12.6
Liquid Assets to Total Assets 13.3 - - - -
Liquid Assets to Short-term Liabilities 42.6 - - - -
Liquidity Coverage Ratio1 - 127.4 124.3 134.9 143.2
Net Impaired Loans Ratio 1.2 1.2 1.2 1.1 0.9
Capital Charge on Interest Rate Risk in the
Trading Book to Capital Base
1.4 1.2 1.1 1.0 1.1
Net Open Position in FC to Capital Base 4.7 6.1 6.3 6.3 5.8
Equity Holdings to Capital Base 1.3 0.7 1.5 1.9 0.5
1 The Liquidity Coverage Ratio (LCR) Framework takes effect on 1 June 2015 and supersedes the guidelines on Liquidity Framework and Liquidity Framework-i issued on 1 July 1998
p preliminary
Note: Figures may not necessarily add up due to rounding
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
Add. Info
7
Implementation of Cash Transaction Limit(s) in Selected
Jurisdictions
Add. Info
8
N/A
SIARAN AKHBAR
Ref. No.: 08/19/05 EMBARGO: Not for publication or
broadcast before 1200 hours on
Friday, 16 August 2019
ECONOMIC AND FINANCIAL DEVELOPMENTS IN MALAYSIA
IN THE SECOND QUARTER OF 2019
The Malaysian economy grew by 4.9% in the second quarter of 2019
The economy recorded a stronger growth of 4.9% in the second quarter (1Q
2019: 4.5%), supported by higher household spending and private investment.
On the supply side, the mining sector rebounded, driven mainly by the recovery
in natural gas output. Growth in the manufacturing sector improved marginally,
supported by better performance of the domestic-oriented industries. Services
sector continued to expand amid sustained growth in the wholesale and retail
trade subsector. On a quarter-on-quarter seasonally-adjusted basis, the
economy grew by 1.0%.
For the quarter, headline inflation averaged higher mainly reflecting the lapse
in the impact of the Goods and Services Tax (GST) zerorisation that was
implemented in June 2018. Core inflation, excluding the impact of consumption
tax policy changes, was unchanged at 1.6%.
Exchange rate developments
In the second quarter, the ringgit depreciated by 1.5% against the US dollar
driven mainly by non-resident portfolio outflows as investor sentiments
remained subdued amid softening global growth outlook and escalations in
global trade tensions. These uncertainties remained elevated and continued to
dampen investors’ risk-appetite towards regional financial markets, including
Malaysia. From 1 July to 15 August, the ringgit depreciated by 1.2% against the
US dollar. For the year to date, the ringgit has depreciated by 1.3% against the
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
US dollar, in line with most regional currencies. Going forward, the confluence
of global factors will continue to have bearing on the movements of regional
currencies, including the ringgit.
Financing conditions
Overall financing conditions are consistent with the current pace of economic
expansion, with demand for financing showing some signs of improvement
given higher loan applications during the quarter. Steady loan disbursements
across segments, including for SMEs and purchase of houses, continued to
support economic activity.
Going forward, the Malaysian economy is expected to remain on a steady
growth path
Growth is expected to remain supported by private sector activity. The external
sector is likely to continue to be affected by slower global growth amid ongoing
trade tensions. Overall, the baseline projection is for the Malaysian economy to
grow between 4.3% - 4.8% for the year.
Headline inflation in the second half of 2019 is expected to average higher
compared to the first half following the lapse in the impact of consumption tax
policy changes. Underlying inflation is expected to remain stable, supported
by the continued expansion in economic activity and in the absence of strong
demand pressures.
Bank Negara Malaysia
16 August 2019
GDP by Expenditure Components (at constant 2015 prices)
Share
2018
(%)
2018 2019
2Q 1H 1Q 2Q 1H
Annual growth (%)
Aggregate Domestic Demand (excluding stocks)
Private sector
Consumption
Investment
Public sector
Consumption
Investment
94.1
74.2
57.0
17.3
19.8
12.5
7.4
5.5
7.3
7.9
5.5
-1.6
3.1
-9.9
4.8
6.3
7.2
3.4
-0.9
1.8
-5.4
4.4
5.9
7.6
0.4
-1.4
6.3
-13.2
4.6
6.2
7.8
1.8
-2.8
0.3
-9.0
4.5
6.1
7.7
1.2
-2.1
3.2
-11.3
Net Exports
Exports of Goods and Services
Imports of Goods and Services
7.0
67.6
60.6
-6.0
2.6
3.6
22.7
2.5
0.6
10.9
0.1
-1.4
22.9
0.1
-2.1
16.0
0.1
-1.8
GDP 100.0 4.5 4.9 4.5 4.9 4.7
GDP (q-o-q growth, seasonally adjusted) - 0.6 - 1.1 1.0 -
Source: Department of Statistics, Malaysia
Table 1
GDP by Economic Activity (at constant 2015 prices)
Annual growth (%)
Share
2018
(%)
2018 2019
2Q 1H 1Q 2Q 1H
Services
Manufacturing
Mining
Agriculture
Construction
56.7
22.4
7.6
7.3
4.9
6.5
4.9
-3.4
-1.7
4.8
6.5
5.0
-2.0
0.7
4.9
6.4
4.2
-2.1
5.6
0.3
6.1
4.3
2.9
4.2
0.5
6.3
4.2
0.3
4.9
0.4
Real GDP 100.01 4.5 4.9 4.5 4.9 4.7
1 Numbers do not add up due to rounding and exclusion of import duties component
Source: Department of Statistics, Malaysia
Table 2
Q2_en
2Q2019 GDP - Tables_EN
| Press Release |
27 Mar 2019 | The 2018 Financial Stability and Payment Systems Report | https://www.bnm.gov.my/-/the-2018-financial-stability-and-payment-systems-report | https://www.bnm.gov.my/documents/20124/65309/fs2018_en.pdf, https://www.bnm.gov.my/documents/20124/65309/2018_AR_FSPSR_slides.pdf, https://www.bnm.gov.my/documents/20124/65309/2018_AR_FSPSR_slides_2pgLayout.pdf | null |
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Bank Negara Malaysia Financial Stability and
Payment Systems Report 2018
Risk developments and assessment of financial stability in 2018
Domestic financial stability continued to be preserved in 2018. Global
developments, including the pace of monetary policy normalisation in some
advanced economies, escalating global trade tensions and geopolitical risks,
as well as volatility in crude oil prices drove investor behaviour. Domestically,
policy uncertainties following the 14th General Election (GE14) also weighed
heavily on investor sentiment. Amid these developments, domestic financial
market conditions remained orderly, supported by strong local institutional
investors, including financial institutions. Prudent risk management by
financial institutions and limited risks from the external borrowings of
Malaysian corporates also contributed to contain market risk exposures at
manageable levels.
The banking system and the insurance and takaful sector remained resilient,
supported by healthy profits and strong capital and liquidity buffers.
Improvements in asset quality continued to be observed. Liquidity and funding
conditions also remained conducive for financial intermediation activities.
These factors continue to underpin sustained public confidence in the
Malaysian financial system.
Household debt remained elevated although it has expanded at a slower pace
in recent periods and more in line with income growth. Debt repayments
continued to be supported by income and employment growth. At the
aggregate level, households also maintained healthy financial buffers. Lower
income households, however, remain vulnerable, although their share of
household debt has continued to decline over the years following the
implementation of responsible lending standards. While the overall quality of
household debt remained sound with low aggregate impairment and
delinquency ratios, some households are showing signs of difficulty in
servicing their debt. This is mainly evident among lower income borrowers
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
with personal financing, and borrowers with larger housing loans (i.e. above
RM500,000) and who are more dependent on variable income sources. Given
these developments, existing macroprudential measures remain relevant in
strengthening household resilience.
In the property market, growth in house prices continued to ease amid weaker
demand for higher-priced properties which remain unaffordable for most
buyers and less exuberant activity in the housing market in recent years. This
is contributing to adjustments in housing supply towards more affordable
segments. Affordability constraints have continued to increase the stock of
unsold housing units. However, risks of a disorderly correction in the housing
market is not expected. With firm housing demand (especially by owner-
occupiers) continuing to outstrip new supply in the foreseeable future, coupled
with measures by the Government in coordination with the private sector to
better align housing demand and supply, the outlook for the housing market is
expected to gradually improve. In the non-residential property segment, risks
remain of a further deterioration in oversupply conditions with the large
incoming supply of office and retail space. However, this poses minimal direct
risks to financial stability, given the low exposures of banks to riskier
segments of the housing and commercial property markets. Additionally, the
Bank’s sensitivity analysis indicates that banks’ capital buffers are sufficient to
withstand a broad price correction in the domestic property market, including
its potential spillovers to the other economic sectors.
Businesses recorded a slight deterioration in financial performance, amid
supply disruptions in the commodities sector, a relatively weaker ringgit and
uncertainties surrounding GE14. However, their overall debt servicing
capacity and liquidity positions remained healthy and above prudent
thresholds. Firms in the oil and gas-related, real estate and construction
sectors continued to face headwinds, but this will not have a significant impact
on domestic financial stability. Factors supporting the lower risk profile of
corporate external borrowings – namely the substantial share of borrowings
which are of a longer-term duration, hedged against currency risks, and
represented by intercompany loans and trade credits – further limit risks to
broader financial stability.
The Bank’s multi-year solvency stress tests on banks and insurers continue to
affirm the resilience of banks and insurers under simulated scenarios of
severe macroeconomic and financial strains. Banks’ and insurers’ capital
positions remained above the regulatory minimum throughout the stress
periods. In 2019, risks to domestic financial stability are assessed to remain
broadly stable across the different sectors and risk areas. The Bank continues
to maintain close vigilance over the pace and level of debt accumulation and
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
risk taking behavior to prevent a build-up of vulnerabilities that could expose
the financial system to future risks.
Development of the financial sector
Financing by the banking sector remained supportive of economic activity in
2018, with total outstanding financing growing faster by 5.6%, driven mainly
by household financing. Business sector financing also recorded a stronger
growth of 5.4%. Financing to small and medium enterprises (SMEs)
accounted for half of total outstanding financing to businesses, with RM65.5
billion in loans approved to over 108,700 SME accounts in 2018. Ongoing
initiatives to address financing barriers that still exist among pockets of SMEs
remain an important priority. Among them include improvements in
documentation requirements, capacity building support for SMEs in the area
of financial management and new approaches to credit assessments that
leverage on technology and big data. The implementation of an online
financing aggregator platform (“imSME”), operated by the Credit Guarantee
Corporation, has helped reduce search costs and expand financing sources to
meet the increasingly diverse financing needs of SMEs. At a broader level,
initiatives being pursued to facilitate the use of moveable property as
collateral, a more holistic approach to the development of alternative finance
and measures to encourage businesses to formalise, are needed to further
enhance access to financing for SMEs, particularly in new growth and
innovative areas.
The Fintech Regulatory Sandbox (Sandbox) continued to serve an important
role in enabling the Bank to ensure that regulation remains responsive to
financial innovation. During the year, the Bank introduced specialised thematic
tracks to the Sandbox (Specialised Sandbox) to allow for a more targeted and
efficient testing approach for high-impact innovations. Further progress was
also made in facilitating Open Application Programme Interface (API) adoption
in the financial services sector to encourage healthy competition and improve
the quality and efficiency of financial services. While the focus to date has
mainly been on facilitating access through Open APIs to publicly available and
product-related data, further work will be undertaken on secure methods for
allowing third-party access to a broader scope of financial information, with
the customers’ consent. This will be accompanied by a careful assessment of
the risks and safeguards necessary to protect consumers and the integrity of
financial services.
As part of its mandate to promote an inclusive financial system, the Bank also
partnered with the United Nations Capital Development Fund (UNCDF) and
the Malaysia Digital Economy Corporation (MDEC) to launch the Digital
Innovation Hub and Inclusive Financial Accelerator Program. These initiatives
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
aim to support greater use of technology by service providers in offering
inclusive financial solutions. Work continues to progress in strengthening the
capacity of development financial institutions (DFIs) to effectively contribute to
economic growth and social development. A key development during the year
was the implementation of an enhanced performance measurement
framework to provide better capture and integrate the developmental impact
and financial performance of DFIs. In parallel, the Bank is also engaging with
the Government to review the DFI landscape to take into account
developments in the financial system and changes in Malaysia’s economic
structure and priorities. This seeks to provide a sharper focus in the mandates
of DFIs while optimising performance and synergies.
Access to financial services in Malaysia remains high, with financial access
points available in sub-districts across the nation providing almost full
accessibility to financial services. Latest indicators of financial inclusion also
showed an improved take up of financial products and greater usage of digital
channels to conduct financial transactions. These developments further
contribute to greater financial inclusion which is concerned not only with
access, but also the responsible use of financial services in a way that
improves financial well-being.
The Malaysian insurance and takaful sector recorded an increase in total
premiums and contributions of 4.9% while total assets correspondingly grew
by 3.2%. However, measures of insurance and takaful penetration were little
changed reflecting the uneven protection coverage of the Malaysian
population, with lower income segments of the population remaining largely
without insurance and takaful protection. In this regard, efforts continue to be
intensified to support the development of affordable insurance and takaful
products, including those offered under Perlindungan Tenang. This is further
complemented by the implementation of the national B40 protection scheme
which aims to help the bottom 40% household income group understand and
experience insurance and takaful, and eventually support them to secure
protection over the longer term from the insurance and takaful market.
The phased liberalisation of motor and fire tariffs entered its third year, with
insurance companies and takaful operators adopting further differentiation in
pricing based on an expanded set of risk rating factors. Greater pricing
flexibility also led to the introduction of over 200 new motor and fire insurance
and takaful products by insurers and takaful operators during the year to meet
different risk protection needs. As important are stronger pricing incentives
that are being introduced to encourage safer driving and safer vehicles. This
should lead to improvements in overall claims experience and more
sustainable premium rates over time.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
The implementation of the Life Insurance and Family Takaful (LIFE)
Framework progressed further with the expansion of products available
through direct distribution channels, the gradual removal of limits on
operational costs to encourage a more competitive and diverse insurance and
takaful market, and the implementation of the Balanced Scorecard Framework
for agents which is delivering better consumer outcomes. In efforts to maintain
affordable insurance coverage, a Medical Cost Containment Taskforce was
also established by the industry to study the drivers of medical claims inflation
and potential cost containment measures.
The Islamic finance sector continued to chart positive growth in 2018, with
Shariah-compliant financing from Islamic banks growing by 10.5% to account
for a higher share of 36.6% of total banking sector financing. Total takaful net
contributions similarly expanded by 15.9% with an increased market share of
16.6% of total premiums and contributions. The implementation of value-
based intermediation (VBI) strategies by Islamic banks gained further
momentum with industry-led initiatives that included the finalisation of the VBI
Strategy Paper, sharing of VBI banking practices and development of
implementation tools to support the operationalisation of VBI. Moving forward,
the Bank is increasing its focus on the role of mainstream finance in
supporting the transition to a sustainable economy, and understanding the
impact of environmental and social risks on institutional resilience and
financial stability more broadly. To this end, the Bank became a member of
the Network for Greening the Financial System comprising central banks and
supervisors engaged in the development of research and sound regulatory
and supervisory practices in managing climate and environmental risks.
In the money services business (MSB) sector, the increased offering and use
of digital MSB services continued to accelerate the migration of remittances to
formal channels, while reducing the cost of transactions for consumers.
Regulatory changes introduced to allow qualified remittance service providers
to conduct electronic Know-Your-Customer (eKYC) when onboarding new
individual customers have further reduced costs and improved access in
locations where remittance service providers do not have a physical presence.
During the year, three electronic remittance service providers were approved
to conduct eKYC. In addition, the Project Greenback 2.0 was implemented in
a second champion city, Kota Kinabalu as part of continuing efforts to educate
the public, particularly the migrant communities and SMEs, on the use of
authorised MSB services and e-remittance solutions, and reduce remittance
costs through increased transparency and access to information.
Measures continued to be taken to develop the onshore foreign exchange
market to bolster its resilience to shocks. These included greater flexibility
accorded to fund managers to dynamically manage their foreign exchange
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
risk and hedge their positions. In 2018, the Bank announced further changes
to its foreign exchange administration policies aimed at improving operational
efficiencies and facilitating risk management by businesses and financial
institutions. Measures were also taken to provide greater transparency on
beneficial ownership in the debt securities market and establish a framework
for the operation of electronic trading platforms.
Regulatory and supervisory framework
The Bank’s regulatory and supervisory activities in 2018 continued to focus on
preserving the resilience of the financial system against emerging risks in a
more challenging environment. This was supported by a sustained focus on
strengthening risk management practices in the banking and insurance and
takaful sectors, particularly in response to risks associated with the rapid pace
of technological change and increasing reliance on third-party arrangements.
A stronger focus on culture in the Bank’s regulatory and supervisory approach
also reflects efforts by the Bank to drive behaviour that is consistent with the
responsible management of financial institutions and society’s expectations.
In the first half of 2019, the Bank will issue proposals on enhanced regulatory
requirements and policy measures for domestic systemically important
banking institutions (D-SIBs) to reduce the probability and impact of their
distress or disorderly failure on the financial system and the economy. This
will include requiring D-SIBs to hold additional capital buffers in the form of
Common Equity Tier 1. The Bank also completed a review of technology risk
management standards to ensure that new and emerging dimensions of risk
are managed appropriately, in particular from increased exposures to cyber
threats and compromised access to confidential data.
Following extensive engagements with the industry and further progress
towards the implementation of recovery plans for financial institutions, the
Bank finalised revised standards on the management of outsourcing risks.
The standards have sought to balance the benefits of outsourcing in
increasing efficiency and supporting the management of risks across financial
groups, with the potential costs of over-reliance on third parties, reduced
supervisory oversight and added complexity to business operations and their
recovery. The Bank is also undertaking a holistic review of the existing
regulatory framework for DFIs to reflect the roles and specific mandates of
DFIs, and ensure that prudential standards remain appropriate to the risk
profiles of individual DFIs. This envisages greater differentiation at an
individual institution level, while ensuring that market distortions are
minimised.
As part of the review, the Bank plans to consult on proposed revisions to 10
core prudential standards applicable to DFIs over the coming year.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
In the insurance and takaful sector, the Bank concluded revisions to standards
on the conduct of investment-linked (IL) business, as part of the Life
Insurance and Family Takaful Framework to support the long-term
development of the insurance and takaful industry. The revisions aim to
ensure that the rapid growth of IL business is supported by responsible
practices that are consistent with the fair treatment of policy owners and
takaful participants. The Bank also published proposed revisions to the
Takaful Operational Framework to accord recognition to a wider range of
Shariah instruments within takaful business in line with advancements in the
development of Shariah standards.
Malaysia’s continuous efforts to preserve the integrity of the financial system
and combat money laundering and terrorism financing (ML/TF) risks resulted
in the upgrading of Malaysia’s technical compliance ratings of its Anti-Money
Laundering and Countering the Financing of Terrorism (AML/CFT) framework
by the Financial Action Task Force. The National Coordination Committee to
Counter Money Laundering also endorsed the results of the National Risk
Assessment which assessed the threat levels for serious crimes that pose ML
risks, and vulnerabilities of financial and non-financial sectors to ML/TF risks.
Guided by the outcomes of the NRA, the National AML/CFT Strategic Plan will
be reviewed in 2019 to incorporate strategies to address identified gaps and
vulnerabilities. This will include enhancements to existing legal and regulatory
frameworks to combat financial crimes and the reallocation of resources
towards areas posing higher risks.
Measures also continued to be taken during the year to mitigate risks from the
abuse of cash for criminal activities. Effective 1 January 2019, the Bank
reduced the cash transaction reporting threshold from RM50,000 to RM25,000
to facilitate enhanced monitoring of suspicious transaction patterns. The Bank
is also considering other measures, such as a limit on high-value cash
transactions, to address the use of cash to store, move and disburse
proceeds from illicit activities. In addition, the on-going review of the Money
Services Business Act 2011, currently under public consultation, will further
strengthen the ability to crack down on illegal money services business
activities which have also been a means for criminal actors to move illicit cash
proceeds.
Effective and timely enforcement actions by the Bank continue to serve as a
credible deterrent against non-compliances with applicable laws and
regulations. As earlier announced, beginning from 2019, details of individual
enforcement actions are now published on the Bank’s website.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
Market conduct and consumer empowerment
Risks to financial consumers from the elevated level of household debt
remained a key focus of the Bank’s regulation and supervision of market
conduct in 2018. In particular, the Bank took specific measures to ensure that
banking institutions act fairly when repricing loans after a borrower fails to
make repayments on time, and do more to help individuals pay off their credit
card debt faster to avoid higher financing charges and persistent debt traps.
Banking institutions were also required to revise terms and conditions in
housing loan and financing contracts that were found to be unfair to
consumers or unnecessarily complex.
These measures were a subset of a broader initiative by the Bank to establish
a set of overarching standards on the fair treatment of financial consumers by
financial service providers (FSPs). The standards which were issued for
consultation during the year, address expectations of FSPs to align their
internal governance, conduct and operations with fair consumer outcomes.
This includes establishing reward and remuneration systems that are
consistent with the fair treatment of financial consumers, ensuring fair contract
terms, providing clear and concise product information and offering advice or
recommendations that are appropriate to a customer’s needs and financial
circumstances. Improvements in FSPs’ conduct towards consumers continue
to be reinforced through supervisory and enforcement actions by the Bank. In
2018, such actions were taken against 51 FSPs for non-compliances with
financial conduct rules and regulations.
Financial education remained a key focus of the Bank to empower and protect
financial consumers. The Bank continued to work closely with its partners in
the Financial Education Network (FEN) to expand the reach and coverage of
financial education initiatives. Based on the results of a follow up assessment
on Malaysia’s Financial Literacy and Capability (MYFLIC) Index (which
measures the level of knowledge, behaviour and attitudes of Malaysian
consumers on financial matters) conducted during the year, the level of
financial knowledge among Malaysians remains generally low. This in turn
has an important influence on financial attitudes which leave a significant
proportion of Malaysians ill-prepared to deal with unexpected expenditures
and life events, including retirement. These findings will be used to inform
priorities and targeted interventions under the national strategy for financial
education that is being finalised by the FEN.
Payment and settlement systems
The payment and settlement systems remained resilient and operated without
any major disruptions throughout the year. Focus continued to be centred on
enhancing the cyber and operational resilience of the large value payment
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
system infrastructure (RENTAS), both within the Bank’s own environment and
that of Payments Network Malaysia Sdn. Bhd. (PayNet) and participants of
RENTAS. The Bank achieved full compliance with all mandatory and advisory
Society for Worldwide Interbank Financial Telecommunication (SWIFT)
security controls, which was affirmed through an independent external review
of the Bank’s compliance. The Bank and financial institutions are also
increasingly deploying effective control measures in an ‘assumed breached’
environment to complement existing defences against cyberattacks.
In the retail payments area, retail electronic payments continued to record
strong double-digit growth.
Given the corresponding demand for immediate payments and the increasing
net debit exposures in real-time retail payment systems, financial institutions
have been required to improve the monitoring and management of their
intraday liquidity positions and exposures. While payment fraud losses
remained low, measures continued to be undertaken by financial institutions
to strengthen safeguards against fraud attempts. Alongside ongoing
measures to educate consumers on payments security, strengthened
procedures and controls for the registration and change of mobile phone
numbers used by customers to receive Transaction Authorisation Codes
(TAC) were implemented by financial institutions to further protect customers
against social engineering fraud.
During the year, further progress was made in the migration to e-payments.
The volume of cheques reduced by more than half from 204.9 million in 2011
to 101.4 million in 2018. While cash usage remains prevalent in Malaysia for
retail transactions, the ratio of cash-in-circulation to Gross Domestic Product
(CIC/GDP) also started to demonstrate a declining trend. The expansion of e-
payment acceptance points among retail merchants, coupled with the
migration of payment cards to support PIN and contactless functionalities
contributed to the increased use of payment cards. In particular, debit card
transactions grew strongly by 51.5% to 245.7 million transactions in 2018
(2017: 162.2 million).
The adoption of credit transfer services has continued to gain traction. This
was largely driven by the substantial growth in the usage of Instant Transfer,
following the fee waiver for transactions of RM5,000 and below for individuals
and SMEs. Mobile payments have also gained momentum in displacing cash
for low value transactions, with total mobile payment transactions recording a
significant increase to
23.7 million transactions in 2018 (2017: 1.2 million). This was supported by an
expanded network of merchants that accept mobile payments. With the
growing presence of non-banks in the mobile payment segment, the Bank
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
implemented the Interoperable Credit Transfer Framework (ICTF) to enable
interoperability between banks and non-banks via a shared payment
infrastructure. This aims to preserve competition and innovation in the
payment market, while optimising positive network effects that are critical to
benefit users of different payment services.
Bank Negara Malaysia
27 March 2019
A
nnex
Financial Stability and Payment Systems Report 2018 P 1
Key Financial Soundness Indicators
As at end
2014 2015 2016 2017 2018p
% (or otherwise stated)
Banking System
Total Capital Ratio 15.9 16.6 16.5 17.8 17.4
Tier 1 Capital Ratio 14.0 14.2 14.0 14.9 13.9
Common Equity Tier 1 Capital Ratio 13.3 13.3 13.1 14.0 13.1
Return on Assets 1.5 1.3 1.3 1.5 1.4
Return on Equity 15.2 12.3 12.5 13.1 12.6
Liquid Assets to Total Assets 13.3 - - - -
Liquid Assets to Short-term Liabilities 42.6 - - - -
Liquidity Coverage Ratio1 - 127.4 124.3 134.9 143.2
Net Impaired Loans Ratio 1.2 1.2 1.2 1.1 0.9
Capital Charge on Interest Rate Risk in the Trading Book
to Capital Base 1.4 1.2 1.1 1.0 1.1
Net Open Position in FC to Capital Base 4.7 6.1 6.3 6.1 5.8
Equity Holdings to Capital Base 1.3 0.7 1.5 1.9 0.5
Insurance and Takaful Sector
Capital Adequacy Ratio 243.5 245.2 243.1 233.0 244.9
Life Insurance and Family Takaful
Excess Income over Outgo (RM billion) 13.8 12.0 13.3 19.0 9.5
New Business Premium / Contribution (RM billion) 12.9 13.2 14.2 15.1 15.9
Capital Adequacy Ratio2 235.8 242.5 238.4 226.2 237.1
General Insurance and General Takaful
Underwriting Profi t (RM billion) 1.8 1.3 1.8 1.3 1.8
Operating Profi t (RM billion) 3.2 2.7 3.4 2.7 3.0
Gross Direct Premium / Contribution (RM billion) 19.1 19.5 19.7 19.9 20.4
Claims Ratio 57.5 60.2 55.9 58.6 56.5
Capital Adequacy Ratio2 272.2 258.2 266.2 268.8 275.7
Household (HH) Sector
HH Debt (RM billion) 952.7 1,023.2 1,080.5 1,133.8 1,187.3
HH Financial Asset (RM billion) 2,015.0 2,119.3 2,232.4 2,420.5 2,540.5
HH Debt-to-GDP Ratio 86.1 88.4 87.8 83.8 83.0
HH Financial Asset to Total HH Debt Ratio 211.5 207.1 206.6 213.5 214.0
HH Liquid Financial Asset to Total HH Debt Ratio 148.7 143.4 141.4 145.7 143.1
Impaired Loans Ratio of HH Sector 1.7 1.5 1.5 1.4 1.2
Business Sector
Return on Assets 6.0 4.9 4.6 4.4 3.6
Return on Equity 10.2 8.8 7.9 7.7 6.7
Debt-to-Equity Ratio 39.2 43.2 43.0 47.0 49.3
Interest Coverage Ratio (times) 12.0 10.6 11.5 9.1 7.2
Operating Margin 15.9 14.8 14.5 14.5 12.8
Impaired Loans Ratio of Business Sector 2.6 2.5 2.5 2.6 2.3
Development Financial Institutions3
Lending to Targeted Sectors (% change) 7.0 5.5 5.7 0.1 -0.3
Deposits Mobilised (% change) 5.3 2.0 6.4 4.8 1.9
Impaired Loans Ratio 5.0 4.8 5.9 5.1 5.8
Return on Assets 1.6 1.4 1.0 1.4 1.5
1 The Liquidity Coverage Ratio (LCR) Framework takes effect on 1 June 2015 and supersedes the guidelines on Liquidity Framework and Liquidity Framework-i
issued on 1 July 1998
2 Figures from 2014 to 2017 include composite insurers and takaful operators. Figures in 2018 refl ect the capital position after the splitting of composite
licenses, hence, they are not comparable with those in 2014-2017
3 Refers to development fi nancial institutions under the Development Financial Institutions Act 2002
p Preliminary
Note : Figures may not necessarily add up due to rounding
Source: Bank Negara Malaysia, Securities Commission Malaysia, Bursa Malaysia, Bloomberg, Department of Statistics, Malaysia
Table A.1
en PR sahaja
fs2018_key_en
BNM Annual Report 2018
BANK NEGARA MALAYSIA
2018 ANNUAL REPORT &
FINANCIAL STABILITY AND PAYMENT SYSTEMS REPORT
27 MARCH 2019
In a nutshell…
Amid rising external headwinds, the Malaysian
economy to remain on a steady growth path in 2019
Downside risks to growth remain,
in an environment of heightened uncertainties
Safeguards are in place to navigate headwinds
2018, a year of resilience
despite multiple headwinds
Malaysia’s
GDP growth:
4.7%
1
High frequency indicators point to
slowing global economic activity going into 2019
Broad-based PMI moderation High global financial market volatility
Global Composite PMI (Manufacturing and Services)
Index
Sources: Haver, Bloomberg, Economic Policy Uncertainty, and BNM estimates
L
CBOE Volatility Index (VIX)
Index
52.7
50.4
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
Advanced Economies
Emerging Markets
> 50 = expansionary
Elevated policy uncertainty Volatile commodity prices
Global Economic Policy Uncertainty Index
Index, 3 mma
Brent Crude Oil Price
USD/bl
12.9
25.0
15.2
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
80.6
64.4
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
129
298
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
2
Against this backdrop, how will the
Malaysian economy fare in 2019?
Malaysia’s
GDP growth:
4.7%
Baseline growth to remain steady between 4.3% - 4.8%
3
…supported by:
Malaysia’s
GDP growth:
4.7%
Sources: Department of Statistics, Malaysia and Staff estimates
6.8
5.7
2018 2019f
Services
VA, %yoy
-
1.0
1.8
2018 2019f
Commodities
VA, %yoy
5.0
4.8
2018 2019f
Manufacturing
VA, %yoy
8.1
6.6
2018 2019f
Private
Consumption
Real, %yoy
4.5
4.9
2018 2019f
Private
Investment
Real, %yoy
6.8
3.4
2018 2019f
Gross Exports
%yoy
Continued demand from
major trade partners
Resilient
private sector spending
Recovery in commodity sectors amid
continued expansion in key economic sectors
4
Private sector spending to remain resilient,
in the absence of major shocks
5
Annual Real Private Expenditure Growth
Multiple
shocks*
%yoy
Dotcom
Bubble
*Multiple shocks refer to GST, oil price decline, MYR depreciation, layoffs and low Oil & Gas income growth
Source: Department of Statistics, Malaysia
6
-10
-4
2
8
14
20
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP Real Private Expenditure
Global
Financial
Crisis
Average 2000 - 2018: 7.4%
Special payments to
civil servants/pensioners (4Q)
Updated
Factors Supporting Household Spending
Source: Department of Statistics, Malaysia
Targeted measures to alleviate cost of living for lower-income households
Lift from temporary measures is diminishing, but fundamental drivers remain supportive
Private consumption to normalise, but remains firm
2018 2019
Tax holiday (Jun-Aug)
Fuel price stabilisation (2Q ‘18-2Q ‘19)
Strong sentiments (2Q-3Q)
Continued income and employment growth
Price ceiling on
retail fuel prices
1 Higher minimum wage2 Bantuan Sara Hidup
cash transfer
3
7
Updated
Private Sector Wages
Annual change, %
Industry Insights on Labour Outlook
Malaysian Employers Federation Salary Survey
BNM Regional Economic Surveillance
% of firms indicating change in headcount (2019)
4.9 4.9
2.2 2.0
4.9 4.9
2.1 2.0
Exec Non-Exec Exec Non-Exec
Increment
(% increase)
Bonus
(months of pay)
2018 2019f
56
36
8
Sustained Higher Lower
P Preliminary
Note: Private sector wages is derived from the salaries and wages data published in the Monthly Manufacturing Statistics and Quarterly Services Statistics by the Department of Statistics,
Malaysia. It covers 63.5% of total employment.
Sources: Department of Statistics, Malaysia, 2018 MEF Salary Surveys for Executives and Non-Executives, and BNM’s industrial engagements (Sep. 2018 - Feb. 2019)
0.7
2.0
2.5
2016 2017 2018p
4.3
6.4
6.0
2016 2017 2018
Employment
Annual change, %
8
Stable labour market outlook, corroborated by
employer surveys and industrial engagements
Despite the uncertain environment,
firms continue to invest
Malaysia’s
GDP growth:
4.7%
Baseline growth to remain steady between 4.3% - 4.8% Optimism
threshold
=100
Vistage-MIER CEO Confidence Index
Points
Sentiments softened amid
increased uncertainty
2Q-18 3Q-18 4Q-18
MIER Business Conditions Index
Points
116.3
108.8
95.3
106.9 107.1
95.8
Source: MIER and Vistage-MIER
9
Investment approvals have risen significantly,
focusing on capacity and efficiency enhancements
32.9
11.2
9.6
13.1
1.9
18.7
Petroleum Products
MIDA Manufacturing Investment Approvals (2018)
RM billion
Total
2018 | RM87 bn
2017 | RM64 bn
Electrical & Electronics
Rubber & Chemicals
Basic metal
Transport
Others*
M&E spending on automation to enhance production efficiency,
particularly in the E&E and primary-related sub-sectors.
Services
Continued capacity expansions to meet demand,
including in the transport, storage, and communication sub-sectors.
*Includes machinery and equipment, plastics, textiles, food, fabricated metal, non-metallic mineral and paper industries
Source: MIDA
10
Private sector financing supportive of economic activity
*Comprises gross loans from the banking system and DFIs, and funds raised from the capital markets (excludes issuances by Cagamas and non-residents)
Source: Bank Negara Malaysia
Record growth in loans disbursed since 2014 at 7.3%
Levels of Gross Financing to Businesses and Households*
RM billion
749.9
335.4
124.4
Loans Disbursed to Businesses Loans Disbursed to Households Funds Raised via Capital Markets
706.2
317.7
86.2
794.4
357.9
95.1
2016
RM1,110 bn
2017
RM1,210 bn
2018
RM1,247 bn
11
Growth in Total Loans Disbursed by the Banking System and DFIs
-1.2% 5.0% 7.3%
**Loans from the banking system and DFIs
Source: Bank Negara Malaysia
Across Business Segments
261
438
307
487
SMEs Non-SMEs
Avg. 2013-2017
2018
Across Selected Economic Sectors
209 203
68
237 231
89
Manufacturing Wholesale and retail trade,
restaurants, and hotels
Construction
Higher loans were disbursed
across all business segments and most economic sectors in 2018
Loans Disbursed**
RM billion
RM billion
12
Financing by banks remain strong
Source: Bank Negara Malaysia
4.8% in 2018
in 20173.9%
7 – 8%
*Refers to outstanding total loans from banks and non-banks
Higher total loan growth in 2018*…
…with banks continuing to target higher loan growth in 2019
targeted growth in outstanding bank loans**
**Based on a weighted average of 17 banks’ internal loan growth targets
from responses to an internal survey on banks. The 17 banks represent
87% share of total banking system loans as at 2018.
13
However, banking system loan applications moderated
towards end-2018, while loan approvals remained stable
RM billion
RM billion
66.7
68.7
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
34.4
31.8
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Monthly Average 2013 - 2017
Monthly Average 2013 - 2017
Loan Applications^ (3mma)
Loan Approvals^ (3mma)
14
^Refers to banking system data only
Source: Bank Negara Malaysia
SME financing remains a key strategic focus
of financial institutions…
SMEs represent a primary customer
segment for financial institutions
Source: SME Finance Survey 2018, Bank Negara Malaysia.
1 Increased competition
2 Fluctuating demand
3 Rising input cost
4 Rising labour cost
5 Labour shortage
6 Retaining labour
7 Maintaining cash flow
9 Government regulation
8
Difficulty
accessing financing
SMEs’ ranking
of factors
constraining
growth
(from most
to least
constraining)
Enhanced access to financing has contributed
to lower constraints faced by SMEs
15
of business
financing accounts
financing
disbursed
financing applications
approved
87%
RM
307bil
3 in 4
More than
123,000
financing applications
approved
…with various ongoing efforts to
enhance the financing ecosystem
to support SME growth
Credit Guarantee Corporation/ Syarikat Jaminan Pembiayaan
Perniagaan guarantee schemes and BNM’s Fund for SMEs
Skim Pembiayaan Mikro
imSME Online Financing Referral Platform
Access to information, advisory and redress
at BNMLINK and other relevant agencies*
Small Debt Resolution Scheme
Access to financing and financial services at 40 financial institutions
16
*SME Corporation Malaysia and Credit Guarantee Corporation
Growth prospects also lifted by
recovery from supply disruptions…
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
Turnaround in both mining and agriculture sectors to support production and export growth
Commodity: Contribution to GDP Growth
ppt contribution to headline GDP
0.1 0.1
-0.12
0.1
0.2
0.6
-0.04
0.2
2011-17 2017 2018 2019f
Mining Agriculture
+0.7
-0.16
+0.3
+0.3
Mining
(7.9% of GDP)
Recovery of natural gas operations
in East Malaysia
Agriculture
(7.8% of GDP)
Improvement in palm oil yields amid waning
impact from adverse weather
17
Primary-
related
(69%)
E&E
(15%)
Transport (incl.
aerospace)
(6%)
Others
(10%)
…and
new manufacturing production facilities
Note: The manufacturing sector accounts for 23% of GDP in 2018
Source: Staff estimates based on news flow and industrial engagements
Additional production capacity in primary-related and E&E sub-sectors to support growth
Oil and Gas Value Chain
Deepen domestic economic
complexity by producing high value-
added specialty chemicals in
the longer term
Upstream
Midstream
Downstream
47% increase in refined petroleum
capacity
Contribution from RAPID
upon full capacity
2019 Sales Projection of New Manufacturing Capacity
% share of total
18
Malaysia’s Gross Export Growth
2019f | 3.4%
2018p | 6.8%
Loss from trade tension
(in baseline)
Potential gain from trade diversion*
(not in baseline)
-0.6 to -1.0
+0.1 to +0.4
Ppt. Contribution to Gross Export Growth
*Potential gain from trade diversion is more likely to occur if the products already account for a significant share of US import market and manufacturers have the capacity to ramp up production
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
19
Continued expansion in exports
amid more moderate global growth and trade activity…
Semiconductor
26%
Other E&E1
19%
Petroleum
products
9%Chemicals
7%
Metal
products
5%
Machinery &
equipment
5%
Other
Non-E&E2
28%
Breakdown of Manufactured Exports (2018)
%share of total manufactured exports
Despite global tech downcycle, increased capacity allows firms
to tap into global demand for growing product segments
Automotive
Medical
Increasing use of electronics in vehicles
Spurred by semiconductor use in medical devices
Chemicals
Rubber
products
Growing demand for specialty chemicals
Rising demand in medical industry
1 Other E&E include office and automatic data processing machines, electrical machinery & parts and telecommunication equipment
2 Major components include optical & scientific equipment, processed food, palm oil-based manufactured products, rubber & wood products, transport equipment
Note: Numbers may not add up due to rounding
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
20
…supported by diversified manufacturing base
and capacity expansions
Headline, Core and Transport Inflation
Is Malaysia suffering from deflation?
21
0.2
-0.7
-0.4
1.6 1.5 1.6
-12
-8
-4
0
4
8
-1
0
1
2
May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19
Core inflation*
Headline inflation
Transport inflation (RHS)
% %
Core inflation remained relatively
stable amid sustained domestic
demand conditions
*Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the estimated direct impact of consumption tax policy changes
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Recent negative headline inflation due mainly to lower
fuel prices, not a sharp deterioration in demand conditions
% of CPI items
125
100
75
50
25
0
25
50
75
100
125
May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19
Tax holiday period
Average of 22% experienced
m-o-m price increase
Price decline
Unchanged
Price increase of
up to 0.3%
Price increase
exceeding 0.3%
Jan – Feb 2019
Average of 51% experienced
m-o-m price increase
22
**Based on the month-on-month inflation for 125 CPI items at the 4-digit level
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Relatively stable share of CPI items recording price increases
in recent months despite negative headline inflation
Pervasiveness based on month-on-month (m-o-m) inflation of CPI items**
*Average prices of UK Brent, West Texas Intermediate, and Dubai Fateh as forecasted by the IMF in its January 2019 update to the World Economic Outlook
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
2015 2016 2017 2018 2019f
1.0
Headline Inflation
Annual change (%)
1.7
0.7
3.7
Headline inflation in 2019 is projected to average between
Underlying inflation is expected to be sustained
Steady expansion in economic activity, absence of strong demand pressures
0.7% – 1.7%
Pass-through from …
…offset by impact from:
Domestic cost factors, including
those arising from policy measures
Lower global oil prices
*Average oil prices 2019f: USD59/barrel; 2018: USD69/barrel
Price ceilings for domestic fuel until mid-year
RON95 petrol: RM2.08/litre; Diesel: RM2.18/litre
23
2.12.1
Households in urban areas, such as KL face a larger increase in cost of living relative to others
KL
0.2%
(1.4%)
Peninsular Malaysia
Jan-Feb 2019: -0.5% (2018: 1.0%)**
Headline Inflation by Geographical Region
**Numbers in parentheses refer to 2018 average inflation.
^Bank Negara Malaysia uses the term 'living wage' to mean income from all sources besides wages, such as non-wage work benefits and social assistance
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Sarawak
-1.2%
(0.6%)
Sabah & WP Labuan
-1.0%
(0.7%)
Living Wage^ Estimates in KL in 2016 (RM per month)
Single adult
RM2,700
Couple without children
RM4,500
Couple with two children
RM6,500
Households would need to earn an income that supports a minimum acceptable living standard
24
While headline inflation is subdued, cost of living concerns
continue to affect certain segments of society
Longer-term structural policies to boost productivity & income
growth are needed to support higher standard of living
Productivity perspective
Equity perspective
Workers receive a
lower share of national income
Capital intensity
USD ‘000 PPP per worker
Labour income share
%share of GDP
128.9 301.6
35.2 52.7
Malaysian wages are below their
actual productive worth
Malaysia
*Benchmark used is an average of advanced economies: US, UK, Australia, Germany, Singapore
Source: Department of Statistics, Malaysia and CEIC
Benchmark economies*
For an output
worth $1000
paid
$340
Malaysia is less capital intensive -
labour plays a larger role…
…yet workers earn a lower
share of income
paid
$510
25
Insufficient creation of high-skilled,
high-paying jobs
Low-skilled jobs are created faster
than mid- and high-skilled jobs…
… due to expansion in labour-
intensive and low wage industries
Notes:
1. Data for median wage levels are as at 2016 as Malaysia’s 2017 salaries and wage data only represents citizens
2. To facilitate readability, 'jobs' in this slide is in reference to 'net employment gains', derived from the Labour Force Survey
Source: Bank Negara Malaysia estimates using data from Department of Statistics, Malaysia
High-skilled
i.e. managers, professionals,
and technicians
Low-skilled
i.e. elementary occupations
Mid-skilled
i.e. clerical support, service
and sales workers
Growth of Total Employment (CAGR)
(2010-2017)
+2.5%
+4.6%
Construction
Sectoral GDP Growth and Median Wage Levels
(2011 – 2017)
Median wage:
RM1,560
9.6%
Wholesale & Retail, F&B
and Accommodation
Median wage:
RM1,394
6.6%
Total Economy
Median wage:
RM1,703
5.2%
+2.8%
26
2019
Higher downside risks to growth in 2019…
Baseline: 4.7%
Some Upside Risks
Higher Downside Risks
27
…arising mainly from external uncertainties
• Sharper moderation in global demand
• Escalation of trade tensions
• Disruption in global financial markets
• Weaker-than-expected commodity prices and production
• Resilient private sector spending
• Receding supply disruption and capacity expansions
• Continued demand from major trade partners
• Lower-than-expected inflation
• Resolution of trade disputes
28
Policy priority is to ensure orderly adjustments
in the exchange rate and financial markets
Non- Resident Portfolio Flows and Performance of Ringgit and Regional
Currencies against the US Dollar
* Year-to-date as at 22 March 2019
Note: Regional countries include PR China, Indonesia, South Korea, Philippines, Singapore, Taiwan and Thailand
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
Ringgit flexibility has allowed the Malaysian
economy to better withstand external shocks
-1.8%
Despite the outflows in 2018, ringgit movements remain orderly and in line with
regional currencies, owing to the policy configuration in place
-3.6%
1.9%
0.9%
MYR/USD
Regional
Average
MYR/USD
Regional
Average
2018
2019*
29
The Bank will continue to ensure that
adjustments in the ringgit exchange rate
remain orderly and not excessively volatile
Broad policy toolkit to manage emerging risks,
including targeted prudential policies and
financial market measures
Non-Resident Portfolio
Flows (USD billion)
2018: -8.9
2019*: +1.7
Updated
Deep domestic financial markets would ensure orderly
movements in domestic asset prices amid volatile capital flows
Note: Regional countries include PR China, India, Indonesia, South Korea, Philippines, Singapore and Thailand
Source: Bloomberg
Despite volatility, adjustments in the domestic financial markets remain broadly contained,
supported by well-developed financial markets and diversified investor base
Majority of non-residents holdings
are by long-term investors
Presence of large domestic
investor base
Availability of hedging instruments
and flexibilities
30
10-year
Government
Bond Yields
Equity Market
Performance
Index (Jan 18 = 100)
Index (Jan 18 = 100)
90
100
110
120
90
95
100
105
110
Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19
Regional average
Malaysia
Regional average
Malaysia
Import Local production chain
Flexibility to hedge longer term obligations
(Effective immediately)
1
Foreign exchange administration liberalisation to enhance
businesses’ hedging flexibilities…
1/ Current account obligations include imports of goods and services as well as profits, dividends and interests
SME: Small and Medium Enterprise
31
Residents can extend hedging of foreign currency exposures on current account
obligations1 and loan repayment up to 12 months
Benefit
Allow residents to better manage their foreign currency exposure for longer tenure
Exportchain
Resident exporters can make payment in foreign currency to resident SMEs (net importers)
for settlement of domestic trade in goods and services upon one-off registration with respective banks
Benefit
Allow SMEs which are net importers to achieve ‘natural hedge’, thus minimising foreign exchange risks
…for better foreign exchange risk management
2
32
Flexibility for SMEs with import obligations to receive payment in foreign currency
(Effective 2 May 2019)
Source: Bank Negara Malaysia, IMF, and World Bank
External debt is driven by
country-specific factors
33
Large presence of foreign
banks & MNCs
Extensive regional footprint
of domestic banks
Deep & liquid domestic debt market with
high non-resident participation
FCY exposure (68.9%) is subjected to
prudential and hedging requirements
Ringgit-denominated (31.1%)
not affected by currency fluctuations
Non-resident
holdings:
20% of total
external debt
External Debt
as at end-2018:
64.7%
of GDP
*Current account excluding interest payments to non-residents
Note: FCY refers to foreign currency
Source: Bank Negara Malaysia
58
61
64
77
56
External Debt Simulation:
Rise in Debt Level After Each Shock
(as at end-2023, % of GDP)
Baseline External Debt (2023)
Interest rate shock
(0.7ppt higher than baseline)
Exchange rate shock
(14.9% depreciation)
GDP growth shock
(2.4ppt lower than baseline)
Current account* shock
(4.3ppt lower than baseline)
64.0%
Intragroup
exposures
47%
Banks’
external
debt
Non-intragroup
53%
FCY liquid
assets
RM136 bn
FCY External
debt-at-risk
RM64 bn
FCY External debt
RM324 bn
FCY external assets
RM931 bn
Other debt
25%
MNCs’
external
debt
Intercompany
borrowings
75%
Banking Institutions Corporations
External risks are well-mitigated by debt profile
and the availability of external buffers
34
Baseline growth to remain steady between 4.3% - 4.8%
How will monetary policy support
sustainable growth with price stability
in 2019 and 2020?
35
• Close monitoring of global and domestic developments for the potential
impact to domestic growth, inflation and financial conditions is key
– Monetary policy considerations are complex and multifaceted
• Monetary operations will continue to ensure sufficient liquidity to support
financial intermediation activity
• At the current level of OPR, the stance of monetary policy remains
accommodative and supportive of economic activity
2.75
3.00
3.25
3.00
3.25
2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Bank Negara Malaysia
Overnight Policy Rate, %
36
Final Analysis
GDP to grow between 4.3 – 4.8%, anchored by private
sector spending, capacity expansion and commodity
recovery
Economic
outlook
Risks
Downside risks remain, mainly from trade tensions,
global slowdown, and tightening in global financial
market conditions
Policy
space
Sound fundamentals, facilitative policies, and sufficient
buffers allow Malaysia to face headwinds from a
position of strength
37
Diversified
Economic Structure
Facilitative
Policies
Sufficient
Financial
Buffers
• Diversified trade, economic sectors and investments
• Private sector-led economy
• Business-friendly environment
• Accommodative monetary
policy
• Macroprudential measures
• Targeted Govt. measures to
households
• Deep financial markets
• Flexible exchange rate
• Adequate international reserves
• Sustained current account surplus
(2019f: 1.5 – 2.5% of GNI)
Solid economic foundation to support steady growth
38
Bank Negara Malaysia:
Financial position remained stable in 2018
RM447.64 billion
RM7.52 billion
Total Assets
International
Reserves
Net Profit
Dividend paid
to the Government
RM419.57 billion |
USD101.4 billion
RM2.5 billion
39
411
Gold and Foreign Exchange
Other Assets
Loans and Advances
SDR
Land and Buildings
IMF Reserve Position
MGS
Deposits with Fis
Liabilities
316
Capital
132
Financial Position (as at 31 December 2018)
RM billion
RM billion
Assets
Capital &
Liabilities
Total Income
9.33
Taxation
0.04Development
Expenditure
0.42Recurring
Expenditure
1.35
Net Income
7.52
Income and Expenditures
(year ended 31 December 2018)
40
BANK NEGARA MALAYSIA
2018 FINANCIAL STABILITY AND PAYMENT SYSTEMS REPORT
41
Financial stability
was preserved
in 2018
Continued public
confidence in the
financial system
Orderly
functioning of
financial markets
Effective
financial
intermediation
process
42
Strong and resilient financial institutions
continue to underpin domestic financial stability
Banks’ excess
total capital
RM115 bil
Liquidity
coverage ratio
143%
Loan loss
coverage ratio
98%
(2017: 135%)
(2017: RM124 bil)
(2017: 82%)
* Excess total capital refers to total capital above the regulatory minimum, which includes the 2018 capital conservation buffer requirement and bank-specific
higher minimum requirements.
Source: Bank Negara Malaysia
43
Capital ratios of banks and insurers above
regulatory minima even under simulated stress scenarios
Source: Bank Negara Malaysia
*cumulative shock across stress test horizon (4 years)
1 AS1: Adverse Scenario 1
2 AS2: Adverse Scenario 2
13.1 12.4
10.56*
2.54
1.5
GFC
AFC
Simulated GDP
shocks more
severe than past
stress events
Standard deviations from
long-term growth
AS11
AS22
CET1 capital ratio, % (banks)
76%
Capital adequacy ratio, % (insurers)
13.1
12.4
10.5
Banks
111
CET1 capital ratio (banks)2018 1…1…1…
CET1 capital ratio (banks)AS1 AS2
Pre-shock Post-shock
244
221
174
244
221
174
97%
Insurers
A significant portion of capital is in the form of
high quality loss-absorbing instruments
Minimum regulatory
requirement: 4.5%
130%
44
Financing activity has continued to support banks’ profits…
Source: Bank Negara Malaysia
68% of income attributable to
financing activities
Improvement in interest margins driven
by continued efficiency gains
2.08 2.11 2.12
Gross interest margin (%)
2016 2017 2018
45.8 44.8 44.6
Cost-to-income ratio (%)
45
…with profitability levels largely in line with rating and
regional peers
* Includes off-balance sheet items
Source: Bank Negara Malaysia
1.4%
Return on assets
(2017: 1.5%)
12.6%
Return on equity
(2017: 13.0%)
5.6%
Loan growth
2.9%
Pre-tax profit
Although profits grew at a
slower pace compared
to business activities
Total assets* Total equity
3.6%
5.9%
2018 annual growth
2018 annual growth
46
Household debt remains elevated,
but risks to financial stability
are contained…
Annual Growth
Share of Borrowings by
Vulnerable Borrowers
19.3%
(2017: 19.9%)
(2014: 24.3%)
Aggregate Impairment
Ratio
Financial Asset-to-Debt
Ratio
4.7%
(2017: 4.9%)
Debt
Expansion in household debt more in line with income
and supported by comfortable financial buffers
Financial institutions’ asset quality improved, coupled with
declining share of exposures to the vulnerable segment
2.1
times
1.2%
(2017: 1.4%)
6%
(2017: 6.4%)
Income
5%
(2017: 8.4%)
Financial
assets
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
47
2015 2018
56.5 57.1
improve the financial well-being of households
…with continued efforts to
Ensuring fair and transparent
practices in the repricing of retail
loans following missed or late repayments
Prohibiting unfair terms &
conditions in housing loan contracts
and use of plain language for
housing loan agreements
Helping borrowers with persistent
credit card debt to reduce financing
charges and payoff their debt faster
Fair treatment of consumers Elevating financial literacy
Low overall Malaysia Financial Literacy and
Capability Index
National Strategy for Financial Literacy
to drive actions to improve financial
capability
48
Imbalances in the housing market
are expected to gradually improve…
~171,000
1
unsold
residential units
1 Oversupply of higher-end housing
2
Slower house price growth and rebalancing
of supply will improve affordability
3
Firm demand for affordable homes further
supported by various initiatives
75%
2
(2016: 66%)
new housing launches priced
below RM500,000
Bank Negara RM1 billion
fund for Affordable Homes
Home Ownership Campaign
to clear unsold properties
Target to build 1 million
affordable homes in next 10 years
Stamp duty exemptions
1 As at 3Q 2018 2 Housing launches between 1Q and 3Q 2018
Source: Department of Statistics, Malaysia, National Property Information Centre, Government Budget 2019 and news flows
6.8
2012 - 2014 2014 - 2016
House price
growth
26.5%
Income
growth
12.4% 5.7% 6.8%
(2014 – 2016)(2012 – 2014)
74%
priced above
RM300,000
39%
priced above
RM500,000
49
…while
oversupply of office and retail space
to persist
Incoming Retail Supply
Johor
13.5 mil sf
94% of existing supply
Klang Valley
Penang
46.9 mil sf
67% of existing supply
9 mil sf 2
65% of existing supply
About 144 malls1 are expected to enter
the key states from 2019 onwards
Note:
1 Malls include shopping complexes and hypermarkets
2 Mil sf refers to million square feet
Source: Jones Lang Wootton
However, banks’ exposures to the
office space and shopping
complexes segment remain small
3.4%
6.5%
of banks’ total
outstanding loans
of banks’ holding of
corporate bonds and sukuk
Source: Bank Negara Malaysia
50
Businesses continue to maintain
comfortable debt servicing and liquidity positions
despite more challenging conditions…
Business activity continued to be primarily
supported by domestic financing
1
1998 2017 2018
131.7%
102.9% 103.7%
Non-financial Corporate
Debt-to-GDP Ratio
Domestic loans/
financing
Domestic bonds/
sukuk
External debt
Overall debt servicing and liquidity positions
comfortably above prudent thresholds
2
Interest
coverage ratio
Cash-to-short-
term debt ratio
7.2x
1.6x
Prudent threshold:
2 timesPrudent threshold:
1 time
Source: Bank Negara Malaysia, Department of Statistics, Malaysia and Bloomberg
51
*Based on BNM survey of approved bonds, notes and loans between 2015 and 2018
…with limited risks to financial stability
are medium- to long-term in nature
Low rollover risks
are intercompany loans
Typically has flexible and
concessionary terms
of approved offshore borrowings are
hedged*
Lower risk to exchange rate volatility
76%
35%
75%
Potential losses from large borrower groups
only account for about one-third of banks’
excess capital
4Risks from external borrowings
are mitigated
3
30%
Depreciation in ringgit
50%
Decline in operating profit
50 bps
Increase in cost of RM borrowings
100 bps
Increase in cost of FCY borrowings
Shock parameters
52
What is the direction of risks
in 2019?
Malaysia’s
GDP growth:
4.7%
Stable overall financial stability outlook,
risks remain manageable
53
Pockets of risks continue to persist, but households largely
buffered by stable income and employment prospects
Healthy overall debt servicing and liquidity positions despite
continued challenging conditions for oil and gas, property and
construction sectors
Banks expected to remain resilient, even under adverse
macro-economic and financial conditions
Households
Financial Markets
Financial Institutions
Businesses
Unsold housing units may rise in the near term amid continuing
adjustments in supply towards more affordable segments. Risks
remain elevated in the office space and shopping complex segment
Property
Disorderly adjustments in global financial markets, unresolved trade tensions and geopolitical
events may trigger outflows. Strong domestic institutional investors and further development of
the onshore FX market will continue to support orderly market conditions
54
Enhanced supervisory stress
testing
• Integrated and multi-year stress
scenarios
Strengthening crisis
preparedness
• Recovery planning
• Business continuity management
Strengthening
cyber resilience
• Risk Management in Technology
(RMiT)
Implementation of Basel III
standards and global reforms
• Net Stable Funding Ratio (NSFR)
• Domestic Systematically Important
Banks (D-SIBs)
Regulatory and supervisory activities will continue to focus on
strengthening financial sector resilience against emerging risks…
55
…and safeguarding the integrity of the financial system against threats
posed by money laundering and terrorism financing
Upgrade to full compliance
for 4 Financial Action Task
Force (FATF)
Recommendations1 for
Malaysia
1. Study introduction of Cash Transaction Limit
2. Accelerating migration to e-payments
Enhancements in the
Preventive Framework
Increased
compliance
1
Moving
forward
Mitigate
abuse of cash
2
Reduction in the
requirement for cash
threshold report from
RM50,000 to RM25,000
Strengthened
enforcement
3
Enhancements to the
Money Services Business
(MSB) Act to address
illegal MSB activities
1 The following recommendations have all been upgraded to fully compliant: Rec.5 Terrorism Financing Offence, Rec.7 Targeted Financial Sanctions (Proliferation
Financing), Rec.32 Cash Couriers, and Rec.34 Guidance
Enhanced
surveillance
4
Usage of data analytics to
enhance the supervision
of ML/TF risks and
effectively regulate money
services businesses
56
*United Nations Capital Development Fund
Collaboration with selected financial
institutions, fintech firms and
relevant agencies
Standardised specifications for
open application programme
interfaces (APIs)
Technology in inclusive finance
Accelerator Programme
Accelerate solutions to improve
financial services
Facilitating developments in
financial technology…
57
…with further acceleration in the migration to e-payments
Mobile Payments
42.4 million
mobile phone subscriptions
(76% smartphones)
65,000+
Registered merchants
20x
Increase in payments for
purchases
42.5 million
Number of debit cards
514,818
POS terminals
51.5%
Growth in debit card
transactions
Debit Cards
Instant payments via mobile, NRIC
or business registration number
(Live since 8 December 2018)
Unified QR code for merchants to
accept payments (2H 2019)
2019
Roll-out of interoperable mobile
payment solutions
Source: Bank Negara Malaysia
58
End of Presentation
Q&A Session
Additional Slides
Real GDP
by Expenditure
(Annual change, %)
2018 share1
(%)
2018 2019f
Domestic demand 92.9 5.6 4.4
Private Expenditure 72.8 7.2 6.2
Consumption 55.5 8.1 6.6
Investment 17.4 4.5 4.9
Public Expenditure 20.1 0.1 -1.8
Consumption 12.8 3.3 1.2
Investment 7.3 -5.2 -7.1
Net Exports 8.4 13.4 0.1
Exports 70.6 1.5 0.1
Imports 62.2 0.1 0.0
Real GDP 100.0 4.7 4.3-4.8
1 Numbers may not add up due to rounding and exclusion of import duties
p preliminary
f forecast
Source: Department of Statistics, Malaysia, Bank Negara Malaysia
Real GDP
by Economic Activity
(Annual change, %)
2018 share1
(%)
2018p 2019f
Services 55.5 6.8 5.7
Manufacturing 23.0 5.0 4.8
Mining & Quarrying 7.9 -1.5 0.8
Agriculture 7.8 -0.4 2.8
Construction 4.5 4.2 3.0
Real GDP 100.0 4.7 4.3-4.8
Private domestic demand remain a key driver of growth
Add. Info
1
Multiple
shocks*
Annual Real Private Consumption Growth
%yoy
Dotcom
Bubble
Annual Real Private Investment Growth
Dotcom
Bubble
Global
Financial
Crisis
Multiple
shocks*
% yoy % yoy
-3
3
9
15
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP Real Private Consumption
Global
Financial
Crisis
Average ‘90 – ‘18:
6.7%
-30
0
30
60
-6
-3
0
3
6
9
12
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP (LHS) Real Private Investment (RHS)
Average ‘90 – ‘18:
8.1%
In the absence of major shocks, private sector spending to
remain resilient
*Multiple shocks refer to GST, oil price decline, MYR depreciation, layoffs, and low oil and gas income growth
Source: Department of Statistics, Malaysia
Add. Info
2
8.9
7.2
-5
20
45
70
95
120
145
-2
2
6
10
14
18
22
1Q08 2Q09 3Q10 4Q11 1Q13 2Q14 3Q15 4Q16 1Q18
Despite moderate sentiments, private consumption growth
to remain firm
Optimism threshold =100
MIER Consumer Sentiment Index (RHS)
Post-
Election
Strong
external
demand
Less optimistic consumer sentiments may not necessarily reflect weaker actual spending
Real private consumption
(‘90-’18 avg.: 6.7%)
*Multiple
shocks
Index
%yoy
Global
Financial
Crisis
*Multiple shocks refer to GST, oil price decline, MYR depreciation, layoffs, and low oil and gas income growth
Source: Department of Statistics, Malaysia, MIER
Add. Info
3
L
Exports to continue to register positive growth
Annual change (%) 2018 share (%) 2012-2017 average 2018p 2019f
Gross Exports 100 5.2 6.8 3.4
RM billion - 781.2 998.3 1,032.5
Manufacturing 84 7.2 9.1 4.8
Commodities 16 -1.9 -3.2 -4.6
Gross Imports 100 6.7 4.9 4.5
Trade Balance (RM billion) - 88.0 120.5 114.9
p preliminary
f forecast
Source: Department of Statistics, Malaysia, and Bank Negara Malaysia
Add. Info
4
Current account of the balance of payments remains in
surplus
Item (Net)
2016 2017 2018p 2019f
RM million
Goods1 102,046 116,766 121,362 116,167
Services -18,917 -22,815 -19,700 -19,825
Transportation -23,459 -29,561 -27,757 -29,347
Travel 31,515 32,882 28,853 28,928
Other services -26,309 -24,738 -19,921 -18,510
Government transactions n.i.e -665 -1,399 -875 -896
Balance on goods and services 83,128 93,951 101,662 96,342
Primary income -34,592 -36,354 -49,377 -50,186
Compensation of employees -5,606 -4,773 -7,793 -7,918
Investment income -28,986 -31,581 -41,584 -42,268
Secondary income -18,629 -17,322 -18,780 -18,150
Balance on current account 29,907 40,275 33,505 28,005
% of GNI 2.5 3.1 2.4 1.5 - 2.5
1 Adjusted for valuation and coverage of goods for processing, storage and distribution
p preliminary
f forecast
Source: Department of Statistics, Malaysia, and Bank Negara Malaysia
Add. Info
5
1 In accordance with the Sixth Edition of the Balance of Payments and International Investment Position Manual (BPM6) by the International Monetary Fund (IMF), unless stated otherwise
p preliminary
Source: Department of Statistics, Malaysia; and Bank Negara Malaysia
Financial account of the balance of payments recorded a
net inflow in 2018
Item1 (Net)
2016 2017 2018p
RM million
Direct Investment 13,792 16,171 11,341
Assets -42,246 -24,234 -23,290
Liabilities 56,038 40,405 34,632
Portfolio Investment -14,203 -15,358 -44,402
Assets -15,009 -19,442 -9,112
Liabilities 806 4,084 -35,290
Financial Derivatives -802 -197 971
Other Investment 964 -5,346 50,699
Balance on Financial Account -249 -4,730 18,609
Direct Investment (BPM5 Convention)
Direct Investment Abroad -33,233 -24,248 -21,307
Foreign Direct Investment 47,025 40,419 32,648
Add. Info
6
Banking System
- Key Financial Soundness Indicators
As at
Banking System
2014 2015 2016 2017 2018p
% (or otherwise stated)
Total Capital Ratio 15.9 16.6 16.5 17.8 17.4
Tier 1 Capital Ratio 14.0 14.2 14.0 14.9 13.9
Common Equity Tier 1 Capital Ratio 13.3 13.3 13.1 14.0 13.1
Return on Assets 1.5 1.3 1.3 1.5 1.4
Return on Equity 15.2 12.3 12.5 13.1 12.6
Liquid Assets to Total Assets 13.3 - - - -
Liquid Assets to Short-term Liabilities 42.6 - - - -
Liquidity Coverage Ratio1 - 127.4 124.3 134.9 143.2
Net Impaired Loans Ratio 1.2 1.2 1.2 1.1 0.9
Capital Charge on Interest Rate Risk in the
Trading Book to Capital Base
1.4 1.2 1.1 1.0 1.1
Net Open Position in FC to Capital Base 4.7 6.1 6.3 6.3 5.8
Equity Holdings to Capital Base 1.3 0.7 1.5 1.9 0.5
1 The Liquidity Coverage Ratio (LCR) Framework takes effect on 1 June 2015 and supersedes the guidelines on Liquidity Framework and Liquidity Framework-i issued on 1 July 1998
p preliminary
Note: Figures may not necessarily add up due to rounding
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
Add. Info
7
Implementation of Cash Transaction Limit(s) in Selected
Jurisdictions
Add. Info
8
N/A | Press Release |
22 Mar 2019 | International Reserves of Bank Negara Malaysia as at 15 March 2019 | https://www.bnm.gov.my/-/reserve-15032019 | null | null |
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International Reserves of Bank Negara Malaysia as at 15 March 2019
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International Reserves of Bank Negara Malaysia as at 15 March 2019
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22 Mar 2019
The international reserves of Bank Negara Malaysia increased to USD102.6 billion as at 15 March 2019. The reserves position is sufficient to finance 7.4 months of retained imports and is 1.0 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (15 March 2019)
Bank Negara Malaysia
22 March 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
07 Mar 2019 | International Reserves of Bank Negara Malaysia as at 28 February 2019 | https://www.bnm.gov.my/-/reserve-28022019 | null | null |
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International Reserves of Bank Negara Malaysia as at 28 February 2019
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The international reserves of Bank Negara Malaysia increased to USD102.4 billion as at 28 February 2019. The reserves position is sufficient to finance 7.4 months of retained imports and is 1.0 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (28 February 2019)
Bank Negara Malaysia
7 March 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
05 Mar 2019 | Monetary Policy Statement | https://www.bnm.gov.my/-/monetary-policy-statement-05032019 | null | null |
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At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.25 percent.
Global growth momentum is showing signs of moderation amid slowing growth in most major advanced and emerging economies. Going forward, unresolved trade tensions remain a key source of risk, affecting global trade and investment activities. Tighter global financial conditions and elevated political and policy uncertainty could lead to financial market adjustments, further weighing on the overall outlook.
The Malaysian economy grew at a more moderate pace of 4.7% in 2018. Looking ahead, growth is expected to be sustained in 2019 with continued support from private sector spending. Stable labour market conditions and capacity expansion in key sectors will continue to drive household and capital spending. Support from the external sector is expected to soften, in tandem with the moderating global growth momentum. On balance, the baseline forecast is for the Malaysian economy to remain on a steady growth path. However, materialisation of downside risks from unresolved trade tensions, heightened uncertainties in the global and domestic environment, and prolonged weakness in the commodity-related sectors could further weigh on growth.
Headline inflation in January 2019 was at -0.7%, due mainly to negative transport inflation at -7.8% arising from lower global oil prices. Underlying inflation, as measured by core inflation[1] remained stable at 1.5% in January 2019 reflecting sustained demand conditions. In the immediate term, inflation is expected to remain low mainly due to policy measures. These include the lower price ceiling on domestic retail fuel prices until mid-2019 and the impact of the changes in consumption tax policy on headline inflation. For 2019 as a whole, average headline inflation is expected to be broadly stable compared to 2018. The trajectory of headline inflation will continue to be dependent on global oil prices. Underlying inflation is expected to be sustained, supported by the steady expansion in economic activity and in the absence of strong demand pressures.
At the current level of the OPR, the degree of monetary accommodativeness is consistent with the intended policy stance. Recognising that there are downside risks in the economic and financial environment, the MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.
[1] Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the estimated direct impact of tax policy changes.
Bank Negara Malaysia
5 March 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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28 Feb 2019 | Detailed Disclosure of International Reserves as at end-January 2019 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-january-2019 | null | null |
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Detailed Disclosure of International Reserves as at end-January 2019
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In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD102,126.9 million, while other foreign currency assets amounted to USD952.9 million as at end-January 2019. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from maturity of the foreign currency Bank Negara Interbank Bills amounting to USD4,294.1 million. The short forward positions amounted to USD20,156.1 million while long forward positions amounted to USD900.0 million as at end-January 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to USD2,508.7 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD351.1 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-January 2019, Malaysia’s reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
28 February 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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28 Feb 2019 | Monetary and Financial Developments in January 2019 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-january-2019 | https://www.bnm.gov.my/documents/20124/93700/i_en.pdf | null |
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In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
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See also: Monthly Highlights and Statistics January 2019
Bank Negara Malaysia
28 February 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
a
n
-2
2
F
e
b
-2
2
M
a
r-
2
2
A
p
r-
2
2
M
a
y
-2
2
J
u
n
-2
2
J
u
l-
2
2
A
u
g
-2
2
S
e
p
-2
2
O
c
t-
2
2
N
o
v
-2
2
D
e
c
-2
2
J
a
n
-2
3
F
e
b
-2
3
M
a
r-
2
3
A
p
r-
2
3
M
a
y
-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
22 Feb 2019 | International Reserves of Bank Negara Malaysia as at 15 February 2019 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-15-february-2019 | null | null |
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International Reserves of Bank Negara Malaysia as at 15 February 2019
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International Reserves of Bank Negara Malaysia as at 15 February 2019
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1500 on
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22 Feb 2019
The international reserves of Bank Negara Malaysia increased to USD102.3 billion as at 15 February 2019. The reserves position is sufficient to finance 7.3 months of retained imports and is 1.0 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (15 February 2019)
Bank Negara Malaysia
22 February 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
14 Feb 2019 | Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter of 2018 | https://www.bnm.gov.my/-/economic-and-financial-developments-in-the-malaysian-economy-in-the-fourth-quarter-of-2018 | https://www.bnm.gov.my/documents/20124/65309/4Q2018_GDPSlides-v3.pdf, https://www.bnm.gov.my/documents/20124/65309/Q4_en.pdf, https://www.bnm.gov.my/documents/20124/65309/p1FourthQuarterof2018.pdf | null |
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Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter of 2018
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Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter of 2018
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14 Feb 2019
This document is in Portable Document File (PDF) format.
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See also:
Publication: Quarterly Bulletin
Key Highlights on Economic and Financial Developments in 4Q2018
Presentation Slides [PDF, 664KB]Bank Negara Malaysia
14 February 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Sorotan Bulanan
Pembiayaan bersih terus berkembang
Januari 2019
1
• Pembiayaan bersih1 mencatatkan
pertumbuhan tahunan 5.9% pada bulan
Januari 2019 (Disember 2018: 6.3%) dalam
keadaan pertumbuhan bon korporat
terkumpul yang terus sederhana (Januari
2019: 7.3%, Disember 2018: 8.0%).
• Pertumbuhan pinjaman perniagaan
terkumpul menurun kepada 4.8% pada
bulan Januari 2019 (Disember 2018: 5.4%),
terutamanya dalam sektor pembinaan,
kewangan, insurans dan perkhidmatan
perniagaan dan harta tanah.
• Pertumbuhan pinjaman isi rumah terkumpul
mampan pada 5.5% (Disember 2018: 5.6%).
Pertumbuhan eksport lebih kukuh pada bulan Disember 2018
• Eksport mencatatkan pertumbuhan lebih tinggi
sebanyak 4.8% pada bulan Disember 2018
(November 2018: 1.6%), disebabkan oleh
pertumbuhan eksport perkilangan yang lebih
kukuh, didorong oleh eksport elektronik dan
elektrik (E&E).
• Pada masa hadapan, pertumbuhan eksport
dijangka perlahan, sejajar dengan
pertumbuhan global dan kegiatan
perdagangan yang menjadi sederhana.
Inflasi keseluruhan menjadi negatif pada bulan Januari namun inflasi teras pada
amnya kekal stabil
• Inflasi keseluruhan menurun kepada -0.7%
(Disember 2018: 0.2%), disebabkan
terutamanya oleh harga bahan api dalam negeri
yang lebih rendah (Januari 2019: -13.1%;
Disember 2018: -3.4%).
• Walau bagaimanapun, inflasi makanan
meningkat kepada 1.0% pada bulan Januari
(Disember 2018: 0.7%), disebabkan
terutamanya oleh harga makanan di luar rumah
yang lebih tinggi.
• Tidak termasuk kesan perubahan dasar cukai
penggunaan, inflasi teras pada amnya kekal
stabil pada 1.5% pada bulan Januari 2019
(Disember 2018: 1.6%).
Eksport Malaysia Mengikut Produk
Sumber: Jabatan Perangkaan Malaysia dan MATRADE
*Pengiraan inflasi teras tidak termasuk barangan yang harganya tidak menentu dan
barangan yang harganya ditadbir. Pengiraannya juga tidak termasuk anggaran
kesan langsung perubahan dasar cukai.
Sumber: Jabatan Perangkaan Malaysia dan anggaran staf Bank Negara Malaysia
Sumbangan kepada Inflasi
sumbangan mata peratusan %, tahun ke tahun
-0.7
1.5
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
Ja
n-
18
Fe
b-
18
M
ac
-1
8
Ap
r-1
8
M
ei
-1
8
Ju
n-
18
Ju
l-1
8
O
go
s-
18
Se
p-
18
O
kt
-1
8
N
ov
-1
8
D
is
-1
8
Ja
n-
19
Lain-lain (32.1%) Perumahan & utiliti (23.8%)
Pengangkutan (14.6%) Makanan & minuman bukan alkohol (29.5%)
Inflasi keseluruhan (skala kanan) Inflasi teras (skala kanan)
5.5
7.3
5.9
0
5
10
15
20
Ja
n-
18
Fe
b-
18
M
ac
-1
8
Ap
r-1
8
M
ei
-1
8
Ju
n-
18
Ju
l-1
8
O
go
s-
18
Se
p-
18
O
kt
-1
8
N
ov
-1
8
D
is
-1
8
Ja
n-
19
Pinjaman Sistem Perbankan
Bon Korporat
Pembiayaan Bersih
%, tahun ke tahun
Pembiayaan Bersih Melalui Pinjaman Sistem Perbankan dan
Bon Korporat
1 Pembiayaan bersih merujuk pinjaman terkumpul sistem perbankan [kecuali
institusi kewangan pembangunan (IKP)] dan bon korporat terkumpul.
Sumber: Bank Negara Malaysia
1.6
4.8
-10
0
10
20
Dis-17 Feb-18 Apr-18 Jun-18 Ogos-18 Okt-18 Dis-18
Lain-lain
Eksport mineral
Eksport pertanian
Eksport bukan E&E
E&E (kecuali separa konduktor)
Eksport separa konduktor
% tahun ke tahun/
mata peratusan
Sorotan Bulanan
Januari2019
2
Prestasi pasaran kewangan domestik bercampur-campur
• Ringgit menambah nilai sebanyak 1.2%
berbanding dengan dolar Amerika Syarikat (AS)
pada bulan Januari 2019. Hal ini didorong
terutamanya oleh aliran masuk portfolio bukan
pemastautin di tengah-tengah jangkaan bahawa
kadar pengembalian dasar monetari AS ke paras
wajar adalah lebih perlahan.
• Kadar hasil MGS 5 tahun menyusut 2.5 mata
asas, selaras dengan trend kadar hasil bon
serantau yang menurun.
• Walau bagaimanapun, FBM KLCI, merosot 0.4%
disebabkan terutamanya oleh sentimen yang
lebih lemah dalam sektor produk industri dan
perkhidmatan di tengah-tengah kebimbangan
terhadap harga komoditi yang tidak menentu,
termasuk minyak mentah dan alumina.
Bank-bank mempunyai mudah tunai yang mencukupi bagi menyokong aktiviti pengantaraan
dan memenuhi keperluan yang mendesak
• Nisbah perlindungan mudah tunai sistem
perbankan (liquidity coverage ratio, LCR)
berada pada 144.3%, apabila semua bank
mencatatkan paras LCR melebihi 100%1.
• Profil pendanaan bank-bank pada amnya
stabil. Nisbah pinjaman kepada dana dan
nisbah pinjaman kepada dana dan ekuiti
masing-masing pada 83.3% dan 72.5%.
Prestasi Pasaran Kewangan pada Bulan Januari
Sumber: Bank Negara Malaysia dan Bursa Malaysia
0.6
-9.5
1.2
-0.4
-2.5
1.2
Ekuiti
(% perubahan)
MGS 5 tahun
(mata asas)
Ringgit
(% perubahan)
-12 -10 -8 -6 -4 -2 0 2
Jan-19 Dis-18
84.0 83.3
74.8
72.5
123.9
144.3
0
40
80
120
160
70
75
80
85
90
95
Ja
n
17
M
ac
1
7
M
ei
1
7
Ju
l 1
7
Se
p
17
N
ov
1
7
Ja
n
18
M
ac
1
8
M
ei
1
8
Ju
l 1
8
Se
p
18
N
ov
1
8
Ja
n
19
% %
Nisbah Pinjaman kepada Dana dan Ekuiti
Nisbah Pinjaman kepada Dana
Nisbah Mudah Tunai dan Pendanaan Sistem Perbankan
1 Basel III LCR dilaksanakan secara berperingkat sejak bulan Jun 2015, dengan pematuhan awal ditetapkan pada 60% dan kenaikan secara
beransur-ansur sebanyak 10% setiap tahun sehingga 100% berkuat kuasa 2019. Pada 1 Januari 2019, keperluan minimum ditetapkan pada 100%.
Sumber: Bank Negara Malaysia
SIARAN AKHBAR
No. Ruj.: 02/19/05 EMBARGO: Tidak boleh dicetak
atau disiarkan sebelum pukul 1500
hari Khamis, 28 Februari 2019
SOROTAN BULANAN – JANUARI 2019
Inflasi keseluruhan menjadi negatif pada bulan Januari namun inflasi teras
pada amnya kekal stabil
• Inflasi keseluruhan menurun kepada -0.7% (Disember 2018: 0.2%), disebabkan
terutamanya oleh harga bahan api dalam negeri yang lebih rendah (Januari
2019: -13.1%; Disember 2018: -3.4%).
• Walau bagaimanapun, inflasi makanan meningkat kepada 1.0% pada bulan
Januari (Disember 2018: 0.7%), disebabkan terutamanya oleh harga makanan di
luar rumah yang lebih tinggi.
• Tidak termasuk kesan perubahan dasar cukai penggunaan, inflasi teras1 pada
amnya kekal stabil pada 1.5% pada bulan Januari 2019 (Disember 2018: 1.6%).
Pertumbuhan eksport lebih kukuh pada bulan Disember 2018
• Eksport mencatatkan pertumbuhan lebih tinggi sebanyak 4.8% pada bulan
Disember 2018 (November 2018: 1.6%), disebabkan oleh pertumbuhan eksport
perkilangan yang lebih kukuh, didorong oleh eksport elektronik dan elektrik
(E&E).
• Pada masa hadapan, pertumbuhan eksport dijangka perlahan, sejajar dengan
pertumbuhan global dan kegiatan perdagangan yang menjadi sederhana.
Pembiayaan bersih terus berkembang
• Pembiayaan bersih2 mencatatkan pertumbuhan tahunan 5.9% pada bulan Januari
2019 (Disember 2018: 6.3%) dalam keadaan pertumbuhan bon korporat terkumpul
yang terus sederhana (Januari 2019: 7.3%, Disember 2018: 8.0%).
1 Pengiraan inflasi teras tidak termasuk barangan yang harganya tidak menentu dan
barangan yang harganya ditadbir. Pengiraannya juga tidak termasuk anggaran kesan
langsung perubahan dasar cukai.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
• Pertumbuhan pinjaman perniagaan terkumpul menurun kepada 4.8% pada bulan
Januari 2019 (Disember 2018: 5.4%), terutamanya dalam sektor pembinaan,
kewangan, insurans dan perkhidmatan perniagaan dan harta tanah.
• Pertumbuhan pinjaman isi rumah terkumpul mampan pada 5.5% (Disember 2018:
5.6%).
Prestasi pasaran kewangan domestik bercampur-campur
• Ringgit menambah nilai sebanyak 1.2% berbanding dengan dolar Amerika
Syarikat (AS) pada bulan Januari 2019. Hal ini didorong terutamanya oleh aliran
masuk portfolio bukan pemastautin di tengah-tengah jangkaan bahawa kadar
pengembalian dasar monetari AS ke paras wajar adalah lebih perlahan.
• Kadar hasil MGS 5 tahun menyusut 2.5 mata asas, selaras dengan trend kadar
hasil bon serantau yang menurun.
• Walau bagaimanapun, FBM KLCI, merosot 0.4% disebabkan terutamanya oleh
sentimen yang lebih lemah dalam sektor produk industri dan perkhidmatan di
tengah-tengah kebimbangan terhadap harga komoditi yang tidak menentu,
termasuk minyak mentah dan alumina.
Bank-bank mempunyai mudah tunai yang mencukupi bagi menyokong aktiviti
pengantaraan dan memenuhi keperluan yang mendesak
• Nisbah perlindungan mudah tunai sistem perbankan (liquidity coverage ratio,
LCR) berada pada 144.3%, apabila semua bank mencatatkan paras LCR
melebihi 100%3.
• Profil pendanaan bank-bank pada amnya stabil. Nisbah pinjaman kepada dana
dan nisbah pinjaman kepada dana dan ekuiti masing-masing pada 83.3% dan
72.5%.
Bank Negara Malaysia
28 Februari 2019
2 Pembiayaan bersih merujuk pinjaman terkumpul sistem perbankan [kecuali institusi
kewangan pembangunan (IKP)] dan bon korporat terkumpul.
3 Basel III LCR dilaksanakan secara berperingkat sejak bulan Jun 2015, dengan pematuhan
awal ditetapkan pada 60% dan kenaikan secara beransur-ansur sebanyak 10% setiap tahun
sehingga 100% berkuat kuasa 2019. Pada 1 Januari 2019, keperluan minimum ditetapkan
pada 100%.
280219 Sorotan Bulanan Januari 2019 - BM
Slide Number 1
Slide Number 2
280219 Sorotan Bulanan Januari 2019 - BM1
SOROTAN BULANAN – JANUARI 2019
Q4_en.doc
Pen: 02/04/36 (BN) EMBARGO: Not for publication or
broadcast before 1800 hours on
Wednesday, 25 February 2004
PRESS RELEASE
“Economic and Financial Developments in Malaysia
in the Fourth Quarter of 2003”
Stronger growth momentum in the fourth quarter
Growth momentum in the Malaysian economy strengthened to 6.4% in the
fourth quarter of 2003 from 5.2% in the third quarter. Growth was broad based,
with positive contributions across all industries and demand components. A
stronger upturn in exports gave added support to private sector activities and
consumer spending. Rising consumer and business confidence, the strong
underlying economic fundamentals and low interest rates contributed to the
stronger growth momentum. An important development was the stronger
expansion in investments. The combination of stronger domestic demand and
rising exports resulted in a stronger-than-expected GDP growth of 5.2% for the
whole of 2003.
2
Stronger real GDP growth in 4Q 2003
The main driver to the stronger growth performance was the manufacturing
sector while most other sectors also recorded higher growth. Growth in the
manufacturing sector accelerated to record a strong expansion of 12%,
contributing 3.5 percentage points to GDP growth. Expansion was driven by
strengthening domestic demand and reinforced by more robust exports. The
stronger expansion was thus seen in both the export- and domestic-oriented
industries (17.2% and 8.3% respectively; 3Q: 11.5% and 6% respectively).
Capacity utilization remained high across both sectors.
6.4
48
50
52
54
56
58
60
62
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2002 2003
RM billion
0
1
2
3
4
5
6
7
Annual change
(%) GDP growth (RHS)
4Q Year 3Q 4Q Year
Agriculture 5.5 3.0 6.1 2.2 5.5
Mining 7.1 3.7 1.1 3.0 4.8
Manufacturing 5.7 4.0 8.3 12.0 8.2
Construction 0.5 2.3 2.4 2.7 1.9
Services 4.6 4.1 4.4 4.5 4.1
Real GDP (Ann. chg) 5.4 4.1 5.2 6.4 5.2
Real GDP (Preceding chg.) 0.7 4.1 4.3 1.9 5.2
Source: Department of Statistics, Malaysia
Quarterly GDP by Kind of Economic Activity at 1987 Prices
2002 2003
Annual change in %
3
In the export-oriented industries, higher growth was recorded in the
electronics, chemicals and rubber products industries. Production of electronics
increased markedly following rising global demand across all markets and product
segments. The spillover effects from the strong electronics performance as well
as the improved external demand for resins and plastic products underpinned the
growth in the chemical products industry. The strong expansion in the rubber
products industry was attributed mainly to higher external demand for rubber
gloves. In the domestic-oriented industries, the higher growth was supported by
the increase in the construction-related industries and food and beverages.
Stronger performance in the manufacturing sector reinforced the recovery
in the services sector, with growth strengthening to 4.5% (3Q: 4.4%). Growth was
underpinned by improved consumer sentiment, higher trade activity and
resumption in tourist arrivals to pre-SARs levels of above one million since
November. Of significance, the wholesale and retail trade, hotels and restaurants
sub-sector recorded a significant improvement during the quarter due to a pick-up
in consumer spending during the Mega sales and year-end festivities.
The agriculture sector registered further expansion (2.2%) on higher
production of crude palm oil and rubber, amidst the favourable prices. The mining
sector also posted a stronger performance mainly on account of higher crude oil
production.
Growth in the construction sector for the quarter was sustained by both civil
engineering and the residential sub-sectors. In the latter, activities were supported
by new housing starts as well as ongoing work on housing projects from previous
launches. The incentives in the Economic Package, low interest rates and
attractive financing packages sustained demand for houses. In the public sector,
development expenditure remained high during the quarter.
4
On the demand side, growth in domestic demand was driven mainly by the
private sector, with a stronger growth in household consumption. Supporting
factors include low interest rates, increased access to financing, higher commodity
prices, the positive wealth effect of higher equity prices and measures under the
Economic Package which resulted in higher disposable incomes. Stronger
external performance further raised consumer and business confidence during the
quarter. For the first time since August 2002, sales of passenger cars turned
around in December, reflecting in part some pent-up demand. The higher
propensity to consume was encouraged by the annual year-end bonus payments
amidst more favourable employment prospects, the seasonal festivities and higher
export earnings. Consequently, private consumption recorded a stronger growth of
6.9% during the quarter. Public consumption was also higher, increasing by 11.1%
due mainly to higher expenditure on supplies and services.
3Q 4Q 1Q 2Q 3Q 4Q
Aggregate Domestic Demand 6.1 6.6 5.9 3.0 3.4 6.7
(excluding stocks)
Consumption 7.8 5.1 6.9 4.3 3.5 8.0
Private sector 4.2 4.6 4.3 3.4 5.4 6.9
Public sector 19.2 6.5 18.9 7.2 -1.7 11.1
Gross Fixed Capital Formation 2.8 10.0 3.8 0.4 3.2 3.6
Exports of Goods and Services 11.2 10.9 5.5 4.4 4.4 10.9
Imports of Goods and Services 15.6 8.7 2.8 -0.5 1.5 15.9
GDP 5.8 5.4 4.6 4.5 5.2 6.4
Source: Department of Statistics, Malaysia
2002
Annual change in %
2003
GDP by Expenditure Components (at Constant 1987 prices)
5
An important development was the stronger growth in investment during the
quarter with gross fixed capital formation rising by 3.6%. Private investment in
machinery and equipment strengthened as business sentiment improved and
capacity utilization remained high, especially for the export-oriented industries in
the manufacturing sector. Meanwhile, development expenditure of the Federal
Government, though lower than in the corresponding quarter of 2002, remained
high in the fourth quarter due mainly to expenditure on transportation and health
facilities. The fiscal deficit, however, narrowed in the fourth quarter.
Revisions to the trade data (following the changeover to the Electronic Data
Interchange System) show strong contribution of the export sector to expansion in
output and improved overall business sentiments. As the trade data is still being
reviewed, further statistical revisions in the demand components is expected.
Accordingly, the demand components in the national accounts, in particular, the
items “change in stocks” and “net exports”, will also be adjusted when the
revisions to the trade data have been finalised.
Stronger economic growth in the fourth quarter was achieved with low
inflation. Consumer prices registered a benign increase of 1.2%. A combination of
rising capacity, higher productivity and more competitive pricing of goods and
services continued to contain pricing power despite strengthening demand. The
increase in property prices had also been marginal and mainly for properties in
choice locations .
6
In the external sector, revised data indicated that the trade surplus in the
fourth quarter was larger at RM19.8 billion (3Q: RM19.4 billion). Gross exports
expanded strongly by 14.9% while imports increased at a faster rate of 16%
(3Q2003: 7.9% and 1.9% respectively). The expansion in gross exports was due
to the significant increases in exports of manufactured goods and continued strong
growth in exports of primary commodities. In the manufacturing sector, higher
exports was due mainly to the upswing in the electronics cycle. Exports of
agriculture and minerals remained strong, supported by high prices and export
volume of palm oil, LNG and crude oil.
Rising domestic demand and exports lifted imports, with strong expansion
across all categories of imports. In line with the pick-up in electronics exports,
imports of intermediate goods, which are inputs for manufactured goods, recorded
a strong growth. Imports of consumption goods expanded due mainly to higher
consumption for the festive season. Improving consumer confidence also induced
strong expansion in imports of consumer goods. Imports of capital goods grew at
a robust rate, reflecting continued improvement in investor sentiment.
In the financial account, foreign direct investment was sustained. New long-
term equity inflows doubled during the fourth quarter to RM2.8 billion, on a cash
basis. The bulk of the foreign direct investment was channeled into manufacturing,
particularly electrical and electronic and petroleum-related activities, and the oil
and gas sector. Foreign direct investment in the services sector was mainly in
financing and business services and wholesale and retail trade.
7
Gains in the external sector was reflected in an increase in reserves by
US$4.2 billion to US$44.9 billion at the end of the quarter, due largely to long-term
inflows associated with trade and investment activities. Net inflows of portfolio
capital also rose in line with the more robust economic activity and improved
investor sentiment. International reserves have risen further to US$48.4 billion as
at 14 February 2004, enough to finance 7.6 months of imports and is 5.4 times the
short-term external debt.
Net International Reserves (as at end period)
0
5
10
15
20
25
30
35
40
45
50
US$ billion
0
1
2
3
4
5
6
7
8
Months / Times
Reserves (LHS)
Import cover (RHS)
Reserves/Short-Term External Debt (RHS)
US$48.4 billion
7.6 months
5.4 times
8
The ringgit exchange rate continues to be well supported by rising trade
and investment flows, the gradual increase in foreign exchange reserves, low
inflation, sustainable surplus in the current account, low external debt as well as a
strong and resilient banking system.
Monetary policy supported stronger economic activity
Monetary conditions further support the strengthening growth momentum.
There was stronger demand for credit, non-performing loans declined and the
financial system continued to be supportive of private sector activities. Loans
disbursed by the banking system rose at a strong annual rate of 14.3%. Compared
with the previous quarter, loans disbursed to the household sector remained
strong and the amounts disbursed to the business sector were higher.
As a consequence of the larger disbursements, total loans outstanding
increased at an annual rate of 4.8% at end-December. Loans outstanding to the
SMEs, which accounted for 17.3% of all outstanding loans and 38.3% of total
loans outstanding to businesses, rose more rapidly at an annual rate of 10%, the
highest since July 2001. Outstanding loans to the SMEs expanded by RM2.4
billion and RM7.4 billion during the quarter and in 2003 respectively. Overall,
Stronger expansion in bank lending to SMEs
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2002 2003
RM billion
-4
-2
0
2
4
6
8
10
12
%
Quarterly
change (LHS)
Annual growth
(RHS)
M1: 14.6
M2: 11.1
M3: 9.7
0
2
4
6
8
10
12
14
16
J F M A M J J A S O N D J F M A M J J A S O N D
2002 2003
Monetary Aggregates: Annual Growth
%
9
financing provided by the banking system through extension of loans and its
holdings of PDS expanded at a higher rate of 5.9% as at end-December. Total
gross private sector financing raised through the banking system and from the
capital market increased by 12.8% during the quarter.
The increase in all three monetary aggregates was also reflective of the
significantly improved consumer and business sentiments. While stronger
expansion in M1 (14.6%) reflected increased seasonal demand for liquidity from
consumers and businesses, higher growth in M3 (9.7%) reflected the
expansionary external sector and Government operations.
Despite the stronger demand for loans, average lending rates continued to
decline given the more competitive environment with surplus savings.
Notwithstanding larger capital inflows, BNM’s liquidity operations ensured that
money market rates remained stable. The sterilization cost continues to remain
manageable. As a result, growth in money supply has been supportive of the
higher level of economic activities.
Sound banking system
The banking system remained sound with the risk-weighted capital ratio
(RWCR) at 13.4% as at end-December 2003.
2002 2003
Dec Mar Jun Sep Dec
Capital
Core-capital ratio
(%)
11.1 11.0 11.1 10.9 10.7
RWCR (%) 13.2 13.2 13.7 13.4 13.4
Net NPL ratio
6 months 7.5 7.0 6.8 6.5 6.9
3 months 10.2 9.9 9.5 9.0 8.9
10
The profitability of the banking sector improved further during the quarter
with a higher gross operating profit of RM3.2 billion in the fourth quarter. Higher
income, both interest (+11.6%) and fee-based (+17.8%), offset the increase in
operating costs during the quarter. Improving economic conditions resulted in
lower additional loan loss provision by banking institutions. Recoveries also rose
strongly by RM1.5 billion during the quarter.
The net NPL ratio (3-month basis) declined to 8.9% at end-December 2003.
The level of NPLs for almost all the business sectors recorded improvements. The
gross NPL ratio for the SMEs continued to decline to 14.7% at the end of
December 2003. NPLs for the household sector were also lower at 8.1%.
NPLs as % of total loans to the sector
2002 2003 Banking System
Dec Mar Jun Sep Dec
Business enterprises 18.1 17.4 16.3 15.9 16.1
of which SME loans - 15.8 14.8 14.9 14.7
Households 8.6 8.6 8.5 8.2 8.1
Forward-looking indicators point to sustained stronger growth
The outlook for the global economy in 2004 has improved significantly with
growth more broad-based in the major industrial countries and reinforced by
strong growth in the Asian region. In the fourth quarter of 2003, growth in the US
economy was sustained at a relatively strong pace of 4%, resulting in a stronger-
than-expected overall growth of 3.1% for 2003. In Europe, the upturn in business
sentiment and improving net exports provide positive indications of firmer
economic recovery. In Japan, economic expansion from rising exports and capital
11
expenditure and a consequent improvement in the unemployment rate have
strengthened sustainable growth prospects.
The significantly improved external environment will reinforce stronger
domestic demand in Malaysia. Higher consumer and business confidence is
expected to reinforce the stronger momentum of growth in private consumption
and investment while the public sector gradually consolidates.
Leading indicators continue to support strong and sustainable growth in the
near to medium term. The Malaysian Institute of Economic Research Consumer
Sentiments Index rose by 2.7 points to 115.5 points in the fourth quarter. This is
the highest since 2001 and suggests that the upward trend in consumer spending
is likely to continue into the coming months. Similarly, the outlook for investment,
especially private investment, also shows an up cycle. Rising investor sentiments
in equities and larger funds raised by public listed companies through initial public
offerings, stronger loan applications and higher investment approvals in
manufacturing point to expanded business activities moving forward. In addition,
the economy continues to enjoy the positive effects of strong commodity prices
and rising intra-regional trade and a sharper up cycle in the electronics industry.
The improvement in sentiment is supported by strong underlying
fundamentals that not only provide stable conditions for future growth but also
allow risks to remain contained. The outlook for inflation remains low and stable
while the increase in international reserves has been largely due to sustainable
inflows from trade and long-term investment activities. In addition, the banking
system is well capitalized with NPLs on a declining trend, suggesting a more
resilient banking sector. Despite stronger consumer spending and higher debts by
households, debt-servicing capability remains strong and sustainable due to faster
growth of disposable income.
12
The current accommodative monetary policy stance will be maintained to
provide support for the growth momentum to be sustained. In the meantime,
excess capacity allows for economic expansion to continue without creating
pressures on supply and inflation.
Bank Negara Malaysia
25 February 2004
BNM Annual Report 2018
BANK NEGARA MALAYSIA
2018 ANNUAL REPORT &
FINANCIAL STABILITY AND PAYMENT SYSTEMS REPORT
27 MARCH 2019
In a nutshell…
Amid rising external headwinds, the Malaysian
economy to remain on a steady growth path in 2019
Downside risks to growth remain,
in an environment of heightened uncertainties
Safeguards are in place to navigate headwinds
2018, a year of resilience
despite multiple headwinds
Malaysia’s
GDP growth:
4.7%
1
High frequency indicators point to
slowing global economic activity going into 2019
Broad-based PMI moderation High global financial market volatility
Global Composite PMI (Manufacturing and Services)
Index
Sources: Haver, Bloomberg, Economic Policy Uncertainty, and BNM estimates
L
CBOE Volatility Index (VIX)
Index
52.7
50.4
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
Advanced Economies
Emerging Markets
> 50 = expansionary
Elevated policy uncertainty Volatile commodity prices
Global Economic Policy Uncertainty Index
Index, 3 mma
Brent Crude Oil Price
USD/bl
12.9
25.0
15.2
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
80.6
64.4
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
129
298
Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19
2
Against this backdrop, how will the
Malaysian economy fare in 2019?
Malaysia’s
GDP growth:
4.7%
Baseline growth to remain steady between 4.3% - 4.8%
3
…supported by:
Malaysia’s
GDP growth:
4.7%
Sources: Department of Statistics, Malaysia and Staff estimates
6.8
5.7
2018 2019f
Services
VA, %yoy
-
1.0
1.8
2018 2019f
Commodities
VA, %yoy
5.0
4.8
2018 2019f
Manufacturing
VA, %yoy
8.1
6.6
2018 2019f
Private
Consumption
Real, %yoy
4.5
4.9
2018 2019f
Private
Investment
Real, %yoy
6.8
3.4
2018 2019f
Gross Exports
%yoy
Continued demand from
major trade partners
Resilient
private sector spending
Recovery in commodity sectors amid
continued expansion in key economic sectors
4
Private sector spending to remain resilient,
in the absence of major shocks
5
Annual Real Private Expenditure Growth
Multiple
shocks*
%yoy
Dotcom
Bubble
*Multiple shocks refer to GST, oil price decline, MYR depreciation, layoffs and low Oil & Gas income growth
Source: Department of Statistics, Malaysia
6
-10
-4
2
8
14
20
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP Real Private Expenditure
Global
Financial
Crisis
Average 2000 - 2018: 7.4%
Special payments to
civil servants/pensioners (4Q)
Updated
Factors Supporting Household Spending
Source: Department of Statistics, Malaysia
Targeted measures to alleviate cost of living for lower-income households
Lift from temporary measures is diminishing, but fundamental drivers remain supportive
Private consumption to normalise, but remains firm
2018 2019
Tax holiday (Jun-Aug)
Fuel price stabilisation (2Q ‘18-2Q ‘19)
Strong sentiments (2Q-3Q)
Continued income and employment growth
Price ceiling on
retail fuel prices
1 Higher minimum wage2 Bantuan Sara Hidup
cash transfer
3
7
Updated
Private Sector Wages
Annual change, %
Industry Insights on Labour Outlook
Malaysian Employers Federation Salary Survey
BNM Regional Economic Surveillance
% of firms indicating change in headcount (2019)
4.9 4.9
2.2 2.0
4.9 4.9
2.1 2.0
Exec Non-Exec Exec Non-Exec
Increment
(% increase)
Bonus
(months of pay)
2018 2019f
56
36
8
Sustained Higher Lower
P Preliminary
Note: Private sector wages is derived from the salaries and wages data published in the Monthly Manufacturing Statistics and Quarterly Services Statistics by the Department of Statistics,
Malaysia. It covers 63.5% of total employment.
Sources: Department of Statistics, Malaysia, 2018 MEF Salary Surveys for Executives and Non-Executives, and BNM’s industrial engagements (Sep. 2018 - Feb. 2019)
0.7
2.0
2.5
2016 2017 2018p
4.3
6.4
6.0
2016 2017 2018
Employment
Annual change, %
8
Stable labour market outlook, corroborated by
employer surveys and industrial engagements
Despite the uncertain environment,
firms continue to invest
Malaysia’s
GDP growth:
4.7%
Baseline growth to remain steady between 4.3% - 4.8% Optimism
threshold
=100
Vistage-MIER CEO Confidence Index
Points
Sentiments softened amid
increased uncertainty
2Q-18 3Q-18 4Q-18
MIER Business Conditions Index
Points
116.3
108.8
95.3
106.9 107.1
95.8
Source: MIER and Vistage-MIER
9
Investment approvals have risen significantly,
focusing on capacity and efficiency enhancements
32.9
11.2
9.6
13.1
1.9
18.7
Petroleum Products
MIDA Manufacturing Investment Approvals (2018)
RM billion
Total
2018 | RM87 bn
2017 | RM64 bn
Electrical & Electronics
Rubber & Chemicals
Basic metal
Transport
Others*
M&E spending on automation to enhance production efficiency,
particularly in the E&E and primary-related sub-sectors.
Services
Continued capacity expansions to meet demand,
including in the transport, storage, and communication sub-sectors.
*Includes machinery and equipment, plastics, textiles, food, fabricated metal, non-metallic mineral and paper industries
Source: MIDA
10
Private sector financing supportive of economic activity
*Comprises gross loans from the banking system and DFIs, and funds raised from the capital markets (excludes issuances by Cagamas and non-residents)
Source: Bank Negara Malaysia
Record growth in loans disbursed since 2014 at 7.3%
Levels of Gross Financing to Businesses and Households*
RM billion
749.9
335.4
124.4
Loans Disbursed to Businesses Loans Disbursed to Households Funds Raised via Capital Markets
706.2
317.7
86.2
794.4
357.9
95.1
2016
RM1,110 bn
2017
RM1,210 bn
2018
RM1,247 bn
11
Growth in Total Loans Disbursed by the Banking System and DFIs
-1.2% 5.0% 7.3%
**Loans from the banking system and DFIs
Source: Bank Negara Malaysia
Across Business Segments
261
438
307
487
SMEs Non-SMEs
Avg. 2013-2017
2018
Across Selected Economic Sectors
209 203
68
237 231
89
Manufacturing Wholesale and retail trade,
restaurants, and hotels
Construction
Higher loans were disbursed
across all business segments and most economic sectors in 2018
Loans Disbursed**
RM billion
RM billion
12
Financing by banks remain strong
Source: Bank Negara Malaysia
4.8% in 2018
in 20173.9%
7 – 8%
*Refers to outstanding total loans from banks and non-banks
Higher total loan growth in 2018*…
…with banks continuing to target higher loan growth in 2019
targeted growth in outstanding bank loans**
**Based on a weighted average of 17 banks’ internal loan growth targets
from responses to an internal survey on banks. The 17 banks represent
87% share of total banking system loans as at 2018.
13
However, banking system loan applications moderated
towards end-2018, while loan approvals remained stable
RM billion
RM billion
66.7
68.7
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
34.4
31.8
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Monthly Average 2013 - 2017
Monthly Average 2013 - 2017
Loan Applications^ (3mma)
Loan Approvals^ (3mma)
14
^Refers to banking system data only
Source: Bank Negara Malaysia
SME financing remains a key strategic focus
of financial institutions…
SMEs represent a primary customer
segment for financial institutions
Source: SME Finance Survey 2018, Bank Negara Malaysia.
1 Increased competition
2 Fluctuating demand
3 Rising input cost
4 Rising labour cost
5 Labour shortage
6 Retaining labour
7 Maintaining cash flow
9 Government regulation
8
Difficulty
accessing financing
SMEs’ ranking
of factors
constraining
growth
(from most
to least
constraining)
Enhanced access to financing has contributed
to lower constraints faced by SMEs
15
of business
financing accounts
financing
disbursed
financing applications
approved
87%
RM
307bil
3 in 4
More than
123,000
financing applications
approved
…with various ongoing efforts to
enhance the financing ecosystem
to support SME growth
Credit Guarantee Corporation/ Syarikat Jaminan Pembiayaan
Perniagaan guarantee schemes and BNM’s Fund for SMEs
Skim Pembiayaan Mikro
imSME Online Financing Referral Platform
Access to information, advisory and redress
at BNMLINK and other relevant agencies*
Small Debt Resolution Scheme
Access to financing and financial services at 40 financial institutions
16
*SME Corporation Malaysia and Credit Guarantee Corporation
Growth prospects also lifted by
recovery from supply disruptions…
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
Turnaround in both mining and agriculture sectors to support production and export growth
Commodity: Contribution to GDP Growth
ppt contribution to headline GDP
0.1 0.1
-0.12
0.1
0.2
0.6
-0.04
0.2
2011-17 2017 2018 2019f
Mining Agriculture
+0.7
-0.16
+0.3
+0.3
Mining
(7.9% of GDP)
Recovery of natural gas operations
in East Malaysia
Agriculture
(7.8% of GDP)
Improvement in palm oil yields amid waning
impact from adverse weather
17
Primary-
related
(69%)
E&E
(15%)
Transport (incl.
aerospace)
(6%)
Others
(10%)
…and
new manufacturing production facilities
Note: The manufacturing sector accounts for 23% of GDP in 2018
Source: Staff estimates based on news flow and industrial engagements
Additional production capacity in primary-related and E&E sub-sectors to support growth
Oil and Gas Value Chain
Deepen domestic economic
complexity by producing high value-
added specialty chemicals in
the longer term
Upstream
Midstream
Downstream
47% increase in refined petroleum
capacity
Contribution from RAPID
upon full capacity
2019 Sales Projection of New Manufacturing Capacity
% share of total
18
Malaysia’s Gross Export Growth
2019f | 3.4%
2018p | 6.8%
Loss from trade tension
(in baseline)
Potential gain from trade diversion*
(not in baseline)
-0.6 to -1.0
+0.1 to +0.4
Ppt. Contribution to Gross Export Growth
*Potential gain from trade diversion is more likely to occur if the products already account for a significant share of US import market and manufacturers have the capacity to ramp up production
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
19
Continued expansion in exports
amid more moderate global growth and trade activity…
Semiconductor
26%
Other E&E1
19%
Petroleum
products
9%Chemicals
7%
Metal
products
5%
Machinery &
equipment
5%
Other
Non-E&E2
28%
Breakdown of Manufactured Exports (2018)
%share of total manufactured exports
Despite global tech downcycle, increased capacity allows firms
to tap into global demand for growing product segments
Automotive
Medical
Increasing use of electronics in vehicles
Spurred by semiconductor use in medical devices
Chemicals
Rubber
products
Growing demand for specialty chemicals
Rising demand in medical industry
1 Other E&E include office and automatic data processing machines, electrical machinery & parts and telecommunication equipment
2 Major components include optical & scientific equipment, processed food, palm oil-based manufactured products, rubber & wood products, transport equipment
Note: Numbers may not add up due to rounding
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
20
…supported by diversified manufacturing base
and capacity expansions
Headline, Core and Transport Inflation
Is Malaysia suffering from deflation?
21
0.2
-0.7
-0.4
1.6 1.5 1.6
-12
-8
-4
0
4
8
-1
0
1
2
May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19
Core inflation*
Headline inflation
Transport inflation (RHS)
% %
Core inflation remained relatively
stable amid sustained domestic
demand conditions
*Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the estimated direct impact of consumption tax policy changes
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Recent negative headline inflation due mainly to lower
fuel prices, not a sharp deterioration in demand conditions
% of CPI items
125
100
75
50
25
0
25
50
75
100
125
May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19
Tax holiday period
Average of 22% experienced
m-o-m price increase
Price decline
Unchanged
Price increase of
up to 0.3%
Price increase
exceeding 0.3%
Jan – Feb 2019
Average of 51% experienced
m-o-m price increase
22
**Based on the month-on-month inflation for 125 CPI items at the 4-digit level
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Relatively stable share of CPI items recording price increases
in recent months despite negative headline inflation
Pervasiveness based on month-on-month (m-o-m) inflation of CPI items**
*Average prices of UK Brent, West Texas Intermediate, and Dubai Fateh as forecasted by the IMF in its January 2019 update to the World Economic Outlook
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
2015 2016 2017 2018 2019f
1.0
Headline Inflation
Annual change (%)
1.7
0.7
3.7
Headline inflation in 2019 is projected to average between
Underlying inflation is expected to be sustained
Steady expansion in economic activity, absence of strong demand pressures
0.7% – 1.7%
Pass-through from …
…offset by impact from:
Domestic cost factors, including
those arising from policy measures
Lower global oil prices
*Average oil prices 2019f: USD59/barrel; 2018: USD69/barrel
Price ceilings for domestic fuel until mid-year
RON95 petrol: RM2.08/litre; Diesel: RM2.18/litre
23
2.12.1
Households in urban areas, such as KL face a larger increase in cost of living relative to others
KL
0.2%
(1.4%)
Peninsular Malaysia
Jan-Feb 2019: -0.5% (2018: 1.0%)**
Headline Inflation by Geographical Region
**Numbers in parentheses refer to 2018 average inflation.
^Bank Negara Malaysia uses the term 'living wage' to mean income from all sources besides wages, such as non-wage work benefits and social assistance
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Sarawak
-1.2%
(0.6%)
Sabah & WP Labuan
-1.0%
(0.7%)
Living Wage^ Estimates in KL in 2016 (RM per month)
Single adult
RM2,700
Couple without children
RM4,500
Couple with two children
RM6,500
Households would need to earn an income that supports a minimum acceptable living standard
24
While headline inflation is subdued, cost of living concerns
continue to affect certain segments of society
Longer-term structural policies to boost productivity & income
growth are needed to support higher standard of living
Productivity perspective
Equity perspective
Workers receive a
lower share of national income
Capital intensity
USD ‘000 PPP per worker
Labour income share
%share of GDP
128.9 301.6
35.2 52.7
Malaysian wages are below their
actual productive worth
Malaysia
*Benchmark used is an average of advanced economies: US, UK, Australia, Germany, Singapore
Source: Department of Statistics, Malaysia and CEIC
Benchmark economies*
For an output
worth $1000
paid
$340
Malaysia is less capital intensive -
labour plays a larger role…
…yet workers earn a lower
share of income
paid
$510
25
Insufficient creation of high-skilled,
high-paying jobs
Low-skilled jobs are created faster
than mid- and high-skilled jobs…
… due to expansion in labour-
intensive and low wage industries
Notes:
1. Data for median wage levels are as at 2016 as Malaysia’s 2017 salaries and wage data only represents citizens
2. To facilitate readability, 'jobs' in this slide is in reference to 'net employment gains', derived from the Labour Force Survey
Source: Bank Negara Malaysia estimates using data from Department of Statistics, Malaysia
High-skilled
i.e. managers, professionals,
and technicians
Low-skilled
i.e. elementary occupations
Mid-skilled
i.e. clerical support, service
and sales workers
Growth of Total Employment (CAGR)
(2010-2017)
+2.5%
+4.6%
Construction
Sectoral GDP Growth and Median Wage Levels
(2011 – 2017)
Median wage:
RM1,560
9.6%
Wholesale & Retail, F&B
and Accommodation
Median wage:
RM1,394
6.6%
Total Economy
Median wage:
RM1,703
5.2%
+2.8%
26
2019
Higher downside risks to growth in 2019…
Baseline: 4.7%
Some Upside Risks
Higher Downside Risks
27
…arising mainly from external uncertainties
• Sharper moderation in global demand
• Escalation of trade tensions
• Disruption in global financial markets
• Weaker-than-expected commodity prices and production
• Resilient private sector spending
• Receding supply disruption and capacity expansions
• Continued demand from major trade partners
• Lower-than-expected inflation
• Resolution of trade disputes
28
Policy priority is to ensure orderly adjustments
in the exchange rate and financial markets
Non- Resident Portfolio Flows and Performance of Ringgit and Regional
Currencies against the US Dollar
* Year-to-date as at 22 March 2019
Note: Regional countries include PR China, Indonesia, South Korea, Philippines, Singapore, Taiwan and Thailand
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
Ringgit flexibility has allowed the Malaysian
economy to better withstand external shocks
-1.8%
Despite the outflows in 2018, ringgit movements remain orderly and in line with
regional currencies, owing to the policy configuration in place
-3.6%
1.9%
0.9%
MYR/USD
Regional
Average
MYR/USD
Regional
Average
2018
2019*
29
The Bank will continue to ensure that
adjustments in the ringgit exchange rate
remain orderly and not excessively volatile
Broad policy toolkit to manage emerging risks,
including targeted prudential policies and
financial market measures
Non-Resident Portfolio
Flows (USD billion)
2018: -8.9
2019*: +1.7
Updated
Deep domestic financial markets would ensure orderly
movements in domestic asset prices amid volatile capital flows
Note: Regional countries include PR China, India, Indonesia, South Korea, Philippines, Singapore and Thailand
Source: Bloomberg
Despite volatility, adjustments in the domestic financial markets remain broadly contained,
supported by well-developed financial markets and diversified investor base
Majority of non-residents holdings
are by long-term investors
Presence of large domestic
investor base
Availability of hedging instruments
and flexibilities
30
10-year
Government
Bond Yields
Equity Market
Performance
Index (Jan 18 = 100)
Index (Jan 18 = 100)
90
100
110
120
90
95
100
105
110
Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19
Regional average
Malaysia
Regional average
Malaysia
Import Local production chain
Flexibility to hedge longer term obligations
(Effective immediately)
1
Foreign exchange administration liberalisation to enhance
businesses’ hedging flexibilities…
1/ Current account obligations include imports of goods and services as well as profits, dividends and interests
SME: Small and Medium Enterprise
31
Residents can extend hedging of foreign currency exposures on current account
obligations1 and loan repayment up to 12 months
Benefit
Allow residents to better manage their foreign currency exposure for longer tenure
Exportchain
Resident exporters can make payment in foreign currency to resident SMEs (net importers)
for settlement of domestic trade in goods and services upon one-off registration with respective banks
Benefit
Allow SMEs which are net importers to achieve ‘natural hedge’, thus minimising foreign exchange risks
…for better foreign exchange risk management
2
32
Flexibility for SMEs with import obligations to receive payment in foreign currency
(Effective 2 May 2019)
Source: Bank Negara Malaysia, IMF, and World Bank
External debt is driven by
country-specific factors
33
Large presence of foreign
banks & MNCs
Extensive regional footprint
of domestic banks
Deep & liquid domestic debt market with
high non-resident participation
FCY exposure (68.9%) is subjected to
prudential and hedging requirements
Ringgit-denominated (31.1%)
not affected by currency fluctuations
Non-resident
holdings:
20% of total
external debt
External Debt
as at end-2018:
64.7%
of GDP
*Current account excluding interest payments to non-residents
Note: FCY refers to foreign currency
Source: Bank Negara Malaysia
58
61
64
77
56
External Debt Simulation:
Rise in Debt Level After Each Shock
(as at end-2023, % of GDP)
Baseline External Debt (2023)
Interest rate shock
(0.7ppt higher than baseline)
Exchange rate shock
(14.9% depreciation)
GDP growth shock
(2.4ppt lower than baseline)
Current account* shock
(4.3ppt lower than baseline)
64.0%
Intragroup
exposures
47%
Banks’
external
debt
Non-intragroup
53%
FCY liquid
assets
RM136 bn
FCY External
debt-at-risk
RM64 bn
FCY External debt
RM324 bn
FCY external assets
RM931 bn
Other debt
25%
MNCs’
external
debt
Intercompany
borrowings
75%
Banking Institutions Corporations
External risks are well-mitigated by debt profile
and the availability of external buffers
34
Baseline growth to remain steady between 4.3% - 4.8%
How will monetary policy support
sustainable growth with price stability
in 2019 and 2020?
35
• Close monitoring of global and domestic developments for the potential
impact to domestic growth, inflation and financial conditions is key
– Monetary policy considerations are complex and multifaceted
• Monetary operations will continue to ensure sufficient liquidity to support
financial intermediation activity
• At the current level of OPR, the stance of monetary policy remains
accommodative and supportive of economic activity
2.75
3.00
3.25
3.00
3.25
2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Bank Negara Malaysia
Overnight Policy Rate, %
36
Final Analysis
GDP to grow between 4.3 – 4.8%, anchored by private
sector spending, capacity expansion and commodity
recovery
Economic
outlook
Risks
Downside risks remain, mainly from trade tensions,
global slowdown, and tightening in global financial
market conditions
Policy
space
Sound fundamentals, facilitative policies, and sufficient
buffers allow Malaysia to face headwinds from a
position of strength
37
Diversified
Economic Structure
Facilitative
Policies
Sufficient
Financial
Buffers
• Diversified trade, economic sectors and investments
• Private sector-led economy
• Business-friendly environment
• Accommodative monetary
policy
• Macroprudential measures
• Targeted Govt. measures to
households
• Deep financial markets
• Flexible exchange rate
• Adequate international reserves
• Sustained current account surplus
(2019f: 1.5 – 2.5% of GNI)
Solid economic foundation to support steady growth
38
Bank Negara Malaysia:
Financial position remained stable in 2018
RM447.64 billion
RM7.52 billion
Total Assets
International
Reserves
Net Profit
Dividend paid
to the Government
RM419.57 billion |
USD101.4 billion
RM2.5 billion
39
411
Gold and Foreign Exchange
Other Assets
Loans and Advances
SDR
Land and Buildings
IMF Reserve Position
MGS
Deposits with Fis
Liabilities
316
Capital
132
Financial Position (as at 31 December 2018)
RM billion
RM billion
Assets
Capital &
Liabilities
Total Income
9.33
Taxation
0.04Development
Expenditure
0.42Recurring
Expenditure
1.35
Net Income
7.52
Income and Expenditures
(year ended 31 December 2018)
40
BANK NEGARA MALAYSIA
2018 FINANCIAL STABILITY AND PAYMENT SYSTEMS REPORT
41
Financial stability
was preserved
in 2018
Continued public
confidence in the
financial system
Orderly
functioning of
financial markets
Effective
financial
intermediation
process
42
Strong and resilient financial institutions
continue to underpin domestic financial stability
Banks’ excess
total capital
RM115 bil
Liquidity
coverage ratio
143%
Loan loss
coverage ratio
98%
(2017: 135%)
(2017: RM124 bil)
(2017: 82%)
* Excess total capital refers to total capital above the regulatory minimum, which includes the 2018 capital conservation buffer requirement and bank-specific
higher minimum requirements.
Source: Bank Negara Malaysia
43
Capital ratios of banks and insurers above
regulatory minima even under simulated stress scenarios
Source: Bank Negara Malaysia
*cumulative shock across stress test horizon (4 years)
1 AS1: Adverse Scenario 1
2 AS2: Adverse Scenario 2
13.1 12.4
10.56*
2.54
1.5
GFC
AFC
Simulated GDP
shocks more
severe than past
stress events
Standard deviations from
long-term growth
AS11
AS22
CET1 capital ratio, % (banks)
76%
Capital adequacy ratio, % (insurers)
13.1
12.4
10.5
Banks
111
CET1 capital ratio (banks)2018 1…1…1…
CET1 capital ratio (banks)AS1 AS2
Pre-shock Post-shock
244
221
174
244
221
174
97%
Insurers
A significant portion of capital is in the form of
high quality loss-absorbing instruments
Minimum regulatory
requirement: 4.5%
130%
44
Financing activity has continued to support banks’ profits…
Source: Bank Negara Malaysia
68% of income attributable to
financing activities
Improvement in interest margins driven
by continued efficiency gains
2.08 2.11 2.12
Gross interest margin (%)
2016 2017 2018
45.8 44.8 44.6
Cost-to-income ratio (%)
45
…with profitability levels largely in line with rating and
regional peers
* Includes off-balance sheet items
Source: Bank Negara Malaysia
1.4%
Return on assets
(2017: 1.5%)
12.6%
Return on equity
(2017: 13.0%)
5.6%
Loan growth
2.9%
Pre-tax profit
Although profits grew at a
slower pace compared
to business activities
Total assets* Total equity
3.6%
5.9%
2018 annual growth
2018 annual growth
46
Household debt remains elevated,
but risks to financial stability
are contained…
Annual Growth
Share of Borrowings by
Vulnerable Borrowers
19.3%
(2017: 19.9%)
(2014: 24.3%)
Aggregate Impairment
Ratio
Financial Asset-to-Debt
Ratio
4.7%
(2017: 4.9%)
Debt
Expansion in household debt more in line with income
and supported by comfortable financial buffers
Financial institutions’ asset quality improved, coupled with
declining share of exposures to the vulnerable segment
2.1
times
1.2%
(2017: 1.4%)
6%
(2017: 6.4%)
Income
5%
(2017: 8.4%)
Financial
assets
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
47
2015 2018
56.5 57.1
improve the financial well-being of households
…with continued efforts to
Ensuring fair and transparent
practices in the repricing of retail
loans following missed or late repayments
Prohibiting unfair terms &
conditions in housing loan contracts
and use of plain language for
housing loan agreements
Helping borrowers with persistent
credit card debt to reduce financing
charges and payoff their debt faster
Fair treatment of consumers Elevating financial literacy
Low overall Malaysia Financial Literacy and
Capability Index
National Strategy for Financial Literacy
to drive actions to improve financial
capability
48
Imbalances in the housing market
are expected to gradually improve…
~171,000
1
unsold
residential units
1 Oversupply of higher-end housing
2
Slower house price growth and rebalancing
of supply will improve affordability
3
Firm demand for affordable homes further
supported by various initiatives
75%
2
(2016: 66%)
new housing launches priced
below RM500,000
Bank Negara RM1 billion
fund for Affordable Homes
Home Ownership Campaign
to clear unsold properties
Target to build 1 million
affordable homes in next 10 years
Stamp duty exemptions
1 As at 3Q 2018 2 Housing launches between 1Q and 3Q 2018
Source: Department of Statistics, Malaysia, National Property Information Centre, Government Budget 2019 and news flows
6.8
2012 - 2014 2014 - 2016
House price
growth
26.5%
Income
growth
12.4% 5.7% 6.8%
(2014 – 2016)(2012 – 2014)
74%
priced above
RM300,000
39%
priced above
RM500,000
49
…while
oversupply of office and retail space
to persist
Incoming Retail Supply
Johor
13.5 mil sf
94% of existing supply
Klang Valley
Penang
46.9 mil sf
67% of existing supply
9 mil sf 2
65% of existing supply
About 144 malls1 are expected to enter
the key states from 2019 onwards
Note:
1 Malls include shopping complexes and hypermarkets
2 Mil sf refers to million square feet
Source: Jones Lang Wootton
However, banks’ exposures to the
office space and shopping
complexes segment remain small
3.4%
6.5%
of banks’ total
outstanding loans
of banks’ holding of
corporate bonds and sukuk
Source: Bank Negara Malaysia
50
Businesses continue to maintain
comfortable debt servicing and liquidity positions
despite more challenging conditions…
Business activity continued to be primarily
supported by domestic financing
1
1998 2017 2018
131.7%
102.9% 103.7%
Non-financial Corporate
Debt-to-GDP Ratio
Domestic loans/
financing
Domestic bonds/
sukuk
External debt
Overall debt servicing and liquidity positions
comfortably above prudent thresholds
2
Interest
coverage ratio
Cash-to-short-
term debt ratio
7.2x
1.6x
Prudent threshold:
2 timesPrudent threshold:
1 time
Source: Bank Negara Malaysia, Department of Statistics, Malaysia and Bloomberg
51
*Based on BNM survey of approved bonds, notes and loans between 2015 and 2018
…with limited risks to financial stability
are medium- to long-term in nature
Low rollover risks
are intercompany loans
Typically has flexible and
concessionary terms
of approved offshore borrowings are
hedged*
Lower risk to exchange rate volatility
76%
35%
75%
Potential losses from large borrower groups
only account for about one-third of banks’
excess capital
4Risks from external borrowings
are mitigated
3
30%
Depreciation in ringgit
50%
Decline in operating profit
50 bps
Increase in cost of RM borrowings
100 bps
Increase in cost of FCY borrowings
Shock parameters
52
What is the direction of risks
in 2019?
Malaysia’s
GDP growth:
4.7%
Stable overall financial stability outlook,
risks remain manageable
53
Pockets of risks continue to persist, but households largely
buffered by stable income and employment prospects
Healthy overall debt servicing and liquidity positions despite
continued challenging conditions for oil and gas, property and
construction sectors
Banks expected to remain resilient, even under adverse
macro-economic and financial conditions
Households
Financial Markets
Financial Institutions
Businesses
Unsold housing units may rise in the near term amid continuing
adjustments in supply towards more affordable segments. Risks
remain elevated in the office space and shopping complex segment
Property
Disorderly adjustments in global financial markets, unresolved trade tensions and geopolitical
events may trigger outflows. Strong domestic institutional investors and further development of
the onshore FX market will continue to support orderly market conditions
54
Enhanced supervisory stress
testing
• Integrated and multi-year stress
scenarios
Strengthening crisis
preparedness
• Recovery planning
• Business continuity management
Strengthening
cyber resilience
• Risk Management in Technology
(RMiT)
Implementation of Basel III
standards and global reforms
• Net Stable Funding Ratio (NSFR)
• Domestic Systematically Important
Banks (D-SIBs)
Regulatory and supervisory activities will continue to focus on
strengthening financial sector resilience against emerging risks…
55
…and safeguarding the integrity of the financial system against threats
posed by money laundering and terrorism financing
Upgrade to full compliance
for 4 Financial Action Task
Force (FATF)
Recommendations1 for
Malaysia
1. Study introduction of Cash Transaction Limit
2. Accelerating migration to e-payments
Enhancements in the
Preventive Framework
Increased
compliance
1
Moving
forward
Mitigate
abuse of cash
2
Reduction in the
requirement for cash
threshold report from
RM50,000 to RM25,000
Strengthened
enforcement
3
Enhancements to the
Money Services Business
(MSB) Act to address
illegal MSB activities
1 The following recommendations have all been upgraded to fully compliant: Rec.5 Terrorism Financing Offence, Rec.7 Targeted Financial Sanctions (Proliferation
Financing), Rec.32 Cash Couriers, and Rec.34 Guidance
Enhanced
surveillance
4
Usage of data analytics to
enhance the supervision
of ML/TF risks and
effectively regulate money
services businesses
56
*United Nations Capital Development Fund
Collaboration with selected financial
institutions, fintech firms and
relevant agencies
Standardised specifications for
open application programme
interfaces (APIs)
Technology in inclusive finance
Accelerator Programme
Accelerate solutions to improve
financial services
Facilitating developments in
financial technology…
57
…with further acceleration in the migration to e-payments
Mobile Payments
42.4 million
mobile phone subscriptions
(76% smartphones)
65,000+
Registered merchants
20x
Increase in payments for
purchases
42.5 million
Number of debit cards
514,818
POS terminals
51.5%
Growth in debit card
transactions
Debit Cards
Instant payments via mobile, NRIC
or business registration number
(Live since 8 December 2018)
Unified QR code for merchants to
accept payments (2H 2019)
2019
Roll-out of interoperable mobile
payment solutions
Source: Bank Negara Malaysia
58
End of Presentation
Q&A Session
Additional Slides
Real GDP
by Expenditure
(Annual change, %)
2018 share1
(%)
2018 2019f
Domestic demand 92.9 5.6 4.4
Private Expenditure 72.8 7.2 6.2
Consumption 55.5 8.1 6.6
Investment 17.4 4.5 4.9
Public Expenditure 20.1 0.1 -1.8
Consumption 12.8 3.3 1.2
Investment 7.3 -5.2 -7.1
Net Exports 8.4 13.4 0.1
Exports 70.6 1.5 0.1
Imports 62.2 0.1 0.0
Real GDP 100.0 4.7 4.3-4.8
1 Numbers may not add up due to rounding and exclusion of import duties
p preliminary
f forecast
Source: Department of Statistics, Malaysia, Bank Negara Malaysia
Real GDP
by Economic Activity
(Annual change, %)
2018 share1
(%)
2018p 2019f
Services 55.5 6.8 5.7
Manufacturing 23.0 5.0 4.8
Mining & Quarrying 7.9 -1.5 0.8
Agriculture 7.8 -0.4 2.8
Construction 4.5 4.2 3.0
Real GDP 100.0 4.7 4.3-4.8
Private domestic demand remain a key driver of growth
Add. Info
1
Multiple
shocks*
Annual Real Private Consumption Growth
%yoy
Dotcom
Bubble
Annual Real Private Investment Growth
Dotcom
Bubble
Global
Financial
Crisis
Multiple
shocks*
% yoy % yoy
-3
3
9
15
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP Real Private Consumption
Global
Financial
Crisis
Average ‘90 – ‘18:
6.7%
-30
0
30
60
-6
-3
0
3
6
9
12
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP (LHS) Real Private Investment (RHS)
Average ‘90 – ‘18:
8.1%
In the absence of major shocks, private sector spending to
remain resilient
*Multiple shocks refer to GST, oil price decline, MYR depreciation, layoffs, and low oil and gas income growth
Source: Department of Statistics, Malaysia
Add. Info
2
8.9
7.2
-5
20
45
70
95
120
145
-2
2
6
10
14
18
22
1Q08 2Q09 3Q10 4Q11 1Q13 2Q14 3Q15 4Q16 1Q18
Despite moderate sentiments, private consumption growth
to remain firm
Optimism threshold =100
MIER Consumer Sentiment Index (RHS)
Post-
Election
Strong
external
demand
Less optimistic consumer sentiments may not necessarily reflect weaker actual spending
Real private consumption
(‘90-’18 avg.: 6.7%)
*Multiple
shocks
Index
%yoy
Global
Financial
Crisis
*Multiple shocks refer to GST, oil price decline, MYR depreciation, layoffs, and low oil and gas income growth
Source: Department of Statistics, Malaysia, MIER
Add. Info
3
L
Exports to continue to register positive growth
Annual change (%) 2018 share (%) 2012-2017 average 2018p 2019f
Gross Exports 100 5.2 6.8 3.4
RM billion - 781.2 998.3 1,032.5
Manufacturing 84 7.2 9.1 4.8
Commodities 16 -1.9 -3.2 -4.6
Gross Imports 100 6.7 4.9 4.5
Trade Balance (RM billion) - 88.0 120.5 114.9
p preliminary
f forecast
Source: Department of Statistics, Malaysia, and Bank Negara Malaysia
Add. Info
4
Current account of the balance of payments remains in
surplus
Item (Net)
2016 2017 2018p 2019f
RM million
Goods1 102,046 116,766 121,362 116,167
Services -18,917 -22,815 -19,700 -19,825
Transportation -23,459 -29,561 -27,757 -29,347
Travel 31,515 32,882 28,853 28,928
Other services -26,309 -24,738 -19,921 -18,510
Government transactions n.i.e -665 -1,399 -875 -896
Balance on goods and services 83,128 93,951 101,662 96,342
Primary income -34,592 -36,354 -49,377 -50,186
Compensation of employees -5,606 -4,773 -7,793 -7,918
Investment income -28,986 -31,581 -41,584 -42,268
Secondary income -18,629 -17,322 -18,780 -18,150
Balance on current account 29,907 40,275 33,505 28,005
% of GNI 2.5 3.1 2.4 1.5 - 2.5
1 Adjusted for valuation and coverage of goods for processing, storage and distribution
p preliminary
f forecast
Source: Department of Statistics, Malaysia, and Bank Negara Malaysia
Add. Info
5
1 In accordance with the Sixth Edition of the Balance of Payments and International Investment Position Manual (BPM6) by the International Monetary Fund (IMF), unless stated otherwise
p preliminary
Source: Department of Statistics, Malaysia; and Bank Negara Malaysia
Financial account of the balance of payments recorded a
net inflow in 2018
Item1 (Net)
2016 2017 2018p
RM million
Direct Investment 13,792 16,171 11,341
Assets -42,246 -24,234 -23,290
Liabilities 56,038 40,405 34,632
Portfolio Investment -14,203 -15,358 -44,402
Assets -15,009 -19,442 -9,112
Liabilities 806 4,084 -35,290
Financial Derivatives -802 -197 971
Other Investment 964 -5,346 50,699
Balance on Financial Account -249 -4,730 18,609
Direct Investment (BPM5 Convention)
Direct Investment Abroad -33,233 -24,248 -21,307
Foreign Direct Investment 47,025 40,419 32,648
Add. Info
6
Banking System
- Key Financial Soundness Indicators
As at
Banking System
2014 2015 2016 2017 2018p
% (or otherwise stated)
Total Capital Ratio 15.9 16.6 16.5 17.8 17.4
Tier 1 Capital Ratio 14.0 14.2 14.0 14.9 13.9
Common Equity Tier 1 Capital Ratio 13.3 13.3 13.1 14.0 13.1
Return on Assets 1.5 1.3 1.3 1.5 1.4
Return on Equity 15.2 12.3 12.5 13.1 12.6
Liquid Assets to Total Assets 13.3 - - - -
Liquid Assets to Short-term Liabilities 42.6 - - - -
Liquidity Coverage Ratio1 - 127.4 124.3 134.9 143.2
Net Impaired Loans Ratio 1.2 1.2 1.2 1.1 0.9
Capital Charge on Interest Rate Risk in the
Trading Book to Capital Base
1.4 1.2 1.1 1.0 1.1
Net Open Position in FC to Capital Base 4.7 6.1 6.3 6.3 5.8
Equity Holdings to Capital Base 1.3 0.7 1.5 1.9 0.5
1 The Liquidity Coverage Ratio (LCR) Framework takes effect on 1 June 2015 and supersedes the guidelines on Liquidity Framework and Liquidity Framework-i issued on 1 July 1998
p preliminary
Note: Figures may not necessarily add up due to rounding
Source: Bank Negara Malaysia and Department of Statistics, Malaysia
Add. Info
7
Implementation of Cash Transaction Limit(s) in Selected
Jurisdictions
Add. Info
8
| Press Release |
12 Feb 2019 | International Reserves of Bank Negara Malaysia as at 31 January 2019 | https://www.bnm.gov.my/-/reserve-31012019 | null | null |
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International Reserves of Bank Negara Malaysia as at 31 January 2019
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12 Feb 2019
The international reserves of Bank Negara Malaysia amounted to USD102.1 billion as at 31 January 2019. The reserves position is sufficient to finance 7.4 months of retained imports and is 1.0 time total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (31 January 2019)
Bank Negara Malaysia
12 February 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
31 Jan 2019 | Detailed Disclosure of International Reserves as at end-December 2018 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-december-2018 | null | null |
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In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD101,443.9 million, while other foreign currency assets amounted to USD53.7 million as at end-December 2018. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from maturity of the foreign currency Bank Negara Interbank Bills amounting to USD3,442.4 million. The short forward positions amounted to USD20,906.1 million, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to USD2,571.9 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD108.1 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-December 2018, Malaysia’s reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
31 January 2019
© Bank Negara Malaysia, 2019. All rights reserved.
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31 Jan 2019 | Monetary and Financial Developments in December 2018 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-december-2018 | https://www.bnm.gov.my/documents/20124/132119/i_en.pdf | null |
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See also: Monthly Highlights and Statistics December 2018
Bank Negara Malaysia
31 January 2019
© Bank Negara Malaysia, 2019. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
a
n
-2
2
F
e
b
-2
2
M
a
r-
2
2
A
p
r-
2
2
M
a
y
-2
2
J
u
n
-2
2
J
u
l-
2
2
A
u
g
-2
2
S
e
p
-2
2
O
c
t-
2
2
N
o
v
-2
2
D
e
c
-2
2
J
a
n
-2
3
F
e
b
-2
3
M
a
r-
2
3
A
p
r-
2
3
M
a
y
-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
24 Jan 2019 | Monetary Policy Statement | https://www.bnm.gov.my/-/monetary-policy-statement-24012019 | null | null |
Reading:
Monetary Policy Statement
Share:
Monetary Policy Statement
Embargo :
For immediate release
Not for publication or broadcast before
0700 on
Thursday, 24 January 2019
24 Jan 2019
At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.25 percent.
The global economy continues to expand. Employment remains firm in the advanced economies, while in Asia, domestic demand is sustained. However, global growth momentum is moderating with slower growth in the major economies. Trade tensions are beginning to have a material impact on global trade and investments. Tightening financial conditions and heightened volatility in financial markets, coupled with country-specific factors ranging from heightened political and policy uncertainty and elevated debt levels, could further weigh on growth prospects.
For Malaysia, latest indicators point towards sustained economic expansion. For 2019, domestic demand will remain the key driver of growth. Private consumption will continue to be underpinned by stable employment and wage growth, while private investment will be supported by on-going multi-year projects in both export- and domestic-oriented industries. Sustained growth in private sector activity is expected to offset lower public spending arising from the ongoing fiscal consolidation by the Government. With moderating global growth, the external sector is likely to soften. Risks to growth are tilted to the downside, primarily from potential escalation of trade tensions and commodity-related shocks. On balance, the Malaysian economy is expected to remain on a steady growth path in 2019.
Headline inflation averaged at 1.0% in 2018. In 2019, inflation is expected to average moderately higher. The impact of the consumption tax policy on headline inflation in 2019 will start to lapse towards the end of the year. However, the trajectory of headline inflation will be dependent on global oil prices. Underlying inflation is expected to remain contained in the absence of strong demand pressures.
The domestic financial markets have remained resilient, despite bouts of volatility due to global developments. Domestic monetary and financial conditions remain orderly and supportive of economic growth. The financial sector is sound, with financial institutions operating with strong capital and liquidity buffers. Importantly, the domestic economy maintains its underlying fundamental strength, with steady economic growth, low unemployment and surplus in the current account of the balance of payments. Bank Negara Malaysia’s monetary operations will continue to ensure sufficient liquidity to support the orderly functioning of money and foreign exchange markets and intermediation activity.
At the current level of the OPR, the degree of monetary accommodativeness is consistent with the intended policy stance. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.
Bank Negara Malaysia
24 January 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
22 Jan 2019 | International Reserves of Bank Negara Malaysia as at 15 January 2019 | https://www.bnm.gov.my/-/reserve-15012019 | null | null |
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International Reserves of Bank Negara Malaysia as at 15 January 2019
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International Reserves of Bank Negara Malaysia as at 15 January 2019
Embargo :
For immediate release
Not for publication or broadcast before
1500 on
Tuesday, 22 January 2019
22 Jan 2019
The international reserves of Bank Negara Malaysia amounted to USD101.7 billion as at 15 January 2019. The reserves position is sufficient to finance 7.3 months of retained imports and is 1.0 time the short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (15 January 2019)
Bank Negara Malaysia
22 January 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
07 Jan 2019 | International Reserves of Bank Negara Malaysia as at 31 December 2018 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-31-december-2018 | null | null |
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International Reserves of Bank Negara Malaysia as at 31 December 2018
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International Reserves of Bank Negara Malaysia as at 31 December 2018
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1500 on
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7 Jan 2019
The international reserves of Bank Negara Malaysia amounted to USD101.4 billion as at 31 December 2018. The reserves level has taken into account the quarterly adjustment for foreign exchange revaluation changes. The reserves position is sufficient to finance 7.4 months of retained imports and is 1.0 time the short-term external debt. Related Assets
BNM Statement of Assets & Liabilities (31 December 2018)
Bank Negara Malaysia
7 January 2019
© Bank Negara Malaysia, 2019. All rights reserved.
| null | Press Release |
31 Dec 2020 | Policy Document on Licensing Framework for Digital Banks | https://www.bnm.gov.my/-/policy-document-on-licensing-framework-for-digital-banks | https://www.bnm.gov.my/documents/20124/938039/20201231_Licensing+Framework+for+Digital+Banks.pdf, https://www.bnm.gov.my/documents/20124/764825/20201231_FAQ_Digital+Banks.pdf | null |
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Policy Document on Licensing Framework for Digital Banks
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682
Policy Document on Licensing Framework for Digital Banks
Embargo :
For immediate release
Not for publication or broadcast before
1917 on
Thursday, 31 December 2020
31 Dec 2020
Bank Negara Malaysia (the Bank) today issued the Policy Document on Licensing Framework for Digital Banks (Policy Document) following a six-month public consultation. The Bank wishes to convey its appreciation on the feedback provided by various parties during the consultation period.
The licensing framework for digital banks aims to enable the innovative application of technology to uplift the financial well-being of individuals and businesses and foster sustainable growth. This includes expanding meaningful access to and promoting responsible usage of suitable financial solutions to unserved and underserved segments.
The framework adopts a balanced approach to enable admission of digital banks with strong value propositions whilst safeguarding the integrity and stability of the financial system as well as depositors’ interests. To achieve these outcomes, a simplified regulatory framework will be applied to digital banks during the initial stage of operations, commensurate with an asset threshold of not more than RM3 billion for three to five years. This functions as a foundational phase for the licensees to demonstrate their viability and sound operations, and for the Bank to observe the performance of the licensed digital banks and attendant risks that arises from their operations.
Digital banks will be required to comply with the requirements under the Financial Services Act 2013 (“FSA”) or Islamic Financial Services Act 2013 (“IFSA”), including standards on prudential, Shariah, business conduct and consumer protection, as well as on anti-money laundering and terrorism financing. During the foundational phase, licensed digital banks will be subjected to a more simplified regulatory requirement relating to capital adequacy, liquidity, stress testing, Shariah governance and public disclosure requirements.
Submission of applications to conduct digital banking business or Islamic digital banking business shall be made to the Bank no later than 30 June 2021. Applicants should be guided by the application procedures described in this Policy Document as well as the Application Procedures for New Licences under the FSA and IFSA, and the Application Procedures for Acquisition of Interest in Shares and to be a Financial Holding Company. Up to five licences may be issued to qualified applicants. Notification on the grant of licence will be made by the first quarter of 2022.
See also:
Licensing Framework for Digital Banks (PDF)
Frequently Asked Questions (PDF)
Bank Negara Malaysia
31 December 2020
© Bank Negara Malaysia, 2020. All rights reserved.
|
Sorotan Bulanan
Pertumbuhan pembiayaan bersih terus menyokong aktiviti ekonomi
Disember 2018
1
• Pembiayaan bersih2 mencatatkan
pertumbuhan tahunan 6.3% pada bulan
Disember (November: 7.3%). Hal ini
disebabkan terutamanya oleh terbitan bon
korporat terkumpul yang lebih rendah kepada
8.0% (November: 10.5%), mencerminkan
kesan asas yang tinggi pada bulan Disember
2017.
• Pertumbuhan pinjaman perniagaan terkumpul
adalah sederhana sebanyak 5.4% pada bulan
Disember (November: 6.3%), dengan dorongan
utama daripada sektor pembinaan dan harta
tanah.
• Pertumbuhan pinjaman isi rumah mampan
pada 5.6% (November: 5.7%).
Kadar pertumbuhan perdagangan borong dan runcit lebih tinggi pada bulan
November
• Indeks Perdagangan Borong dan Runcit
(Index of Wholesale and Retail Trade,
IOWRT) meningkat kepada 8.4% pada bulan
November (Oktober: 8.0%). Hal ini
disebabkan oleh segmen runcit yang semakin
bertambah baik memandangkan pengguna
terus berbelanja meskipun SST dilaksanakan
semula pada 1 September 2018.
• Pertumbuhan segmen-segmen borong dan
kenderaan motor lebih sederhana pada bulan
itu.
Inflasi kekal rendah dan stabil pada bulan Disember
• Inflasi keseluruhan kekal rendah pada 0.2%
pada bulan Disember (November: 0.2%),
terutamanya mencerminkan sumbangan
negatif daripada inflasi pengangkutan yang
disebabkan oleh kesan asas.
– Inflasi makanan dan minuman bukan
alkohol juga menurun pada bulan itu
(Disember: 0.7%; November: 1.1%).
• Bagi tahun 2018 secara keseluruhan, inflasi
berpurata pada 1.0% (2017: 3.7%).
• Tidak termasuk kesan perubahan dasar cukai
penggunaan, inflasi teras pada amnya kekal
stabil pada 1.6% (November: 1.6%).
*Pengiraan inflasi teras tidak termasuk barangan yang harganya tidak menentu
dan barangan yang harganya ditadbir. Pengiraannya juga tidak termasuk
anggaran kesan langsung perubahan dasar cukai.
Sumber: Jabatan Perangkaan Malaysia dan anggaran Bank Negara Malaysia
Sumbangan kepada Inflasi
sumbangan mata
peratusan
%, tahun ke tahun
0.2
1.6
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
N
ov
-1
7
D
is
-1
7
Ja
n-
18
Fe
b-
18
M
ac
-1
8
Ap
r-1
8
M
ei
-1
8
Ju
n-
18
Ju
l-1
8
O
go
s-
18
Se
p-
18
O
kt
-1
8
N
ov
-1
8
D
is
-1
8
Lain-lain (32.1%) Perumahan & Utiliti (23.8%)
Pengangkutan (14.6%) Makanan & bukan alkohol (29.5%)
Inflasi keseluruhan (skala kanan) Inflasi teras (skala kanan)
Sumbangan kepada IOWRT keseluruhan
Sumber: Jabatan Perangkaan Malaysia
5.6
8.0
6.3
0
2
4
6
8
10
12
14
16
18
D
is
-1
7
Ja
n-
18
Fe
b-
18
M
ac
-1
8
Ap
r-1
8
M
ei
-1
8
Ju
n-
18
Ju
l-1
8
O
go
s-
18
Se
p-
18
O
kt
-1
8
N
ov
-1
8
D
is
-1
8
Pinjaman Sistem Perbankan
Bon Korporat
Pembiayaan Bersih
2Pembiayaan bersih merujuk pinjaman terkumpul sistem perbankan [kecuali
institusi kewangan pembangunan (IKP)] dan bon korporat terkumpul.
Sumber: Bank Negara Malaysia
Pembiayaan Bersih Melalui Pinjaman Sistem Perbankan dan
Bon Korporat
%, tahun ke tahun
1
8.0 8.4
-2
0
2
4
6
8
10
12
N
ov
-1
7
D
is
-1
7
Ja
n-
18
Fe
b-
18
M
ac
-1
8
Ap
r-1
8
M
ei
-1
8
Ju
n-
18
Ju
l-1
8
O
go
s-
18
Se
p-
18
O
kt
-1
8
N
ov
-1
8
Runcit Borong Kenderaan Motormata peratusan, tahun ke tahun
Sorotan Bulanan
Disember 2018
2
Prestasi Pasaran Kewangan pada Bulan Disember
Sumber: Bank Negara Malaysia dan Bursa Malaysia
Pasaran kewangan domestik bertambah baik disebabkan oleh sentimen serantau
yang lebih menggalakkan
• Pasaran kewangan domestik pulih pada bulan
Disember dalam keadaan dolar Amerika Syarikat
(AS) yang semakin lemah dan perkembangan
luaran yang menyokong sentimen pelabur
terhadap pasaran kewangan serantau.
– Ringgit menambah nilai sebanyak 1.2%
berbanding dengan dolar AS, didorong
terutamanya oleh jangkaan pasaran bahawa
kadar pengembalian dasar monetari di AS ke
paras wajar adalah lebih perlahan. Sentimen
pelabur juga disokong oleh kebimbangan yang
semakin reda berhubung dengan isu pertikaian
perdagangan global.
– FBM KLCI meningkat 0.6% berikutan langkah
para pelabur mengimbangi semula portfolio
pelaburan mereka ke dalam aset serantau di
tengah-tengah ketidakpastian mengenai
prospek politik dan ekonomi di AS. Keadaan ini
adalah susulan penutupan perkhidmatan
kerajaan AS dan unjuran pertumbuhan yang
lebih rendah oleh Federal Reserve AS.
– Kadar hasil MGS 5 tahun menyusut 9.5 mata
asas meskipun terdapat aliran keluar bukan
pemastautin dalam pasaran MGS, susulan
belian aktif pelabur institusi domestik yang
menambah pemegangan MGS mereka
sebanyak RM2.7 bilion pada bulan itu.
-1.7
7.3
-0.1
0.6
-9.5
1.2
Ekuiti
(% perubahan)
MGS 5 tahun
(mata asas)
Ringgit
(% perubahan)
-12 -6 0 6 12
Dis-18 Nov-18
Permodalan sistem perbankan kekal kukuh
Nisbah Kecukupan Modal • Institusi kewangan berada pada kedudukan
yang kukuh untuk berhadapan dengan
sebarang kejutan makroekonomi dan
kewangan yang teruk. Hal ini demikian kerana
terdapat lebihan penampan3 modal sebanyak
RM143 bilion pada bulan Disember 2018.
• Sementara itu, nisbah kecukupan modal hanya
mencatat sedikit kenaikan disebabkan
sebahagiannya oleh penambahan saham biasa
berikutan terdapat skim pelaburan semula
dividen.
3 Merujuk modal yang melebihi keperluan jumlah modal minimum iaitu
sebanyak 8% daripada aset berwajaran risiko.
13.0 13.1
13.7 13.9
17.2 17.4
8
9
10
11
12
13
14
15
16
17
18
Ap
r 1
6
Ju
n
16
O
go
s
16
O
kt
1
6
D
is
1
6
Fe
b
17
Ap
r 1
7
Ju
n
17
O
go
s
17
O
kt
1
7
D
is
1
7
Fe
b
18
Ap
r 1
8
Ju
n
18
O
go
s
18
O
kt
1
8
D
is
1
8
Nisbah Modal Ekuiti Biasa Kumpulan 1
Nisbah Modal Kumpulan 1
Nisbah Jumlah Modal
%%
SIARAN AKHBAR
No. Ruj.: 01/19/08 Untuk siaran segera
SOROTAN BULANAN – DISEMBER 2018
Inflasi kekal rendah dan stabil pada bulan Disember
• Inflasi keseluruhan kekal rendah pada 0.2% pada bulan Disember (November:
0.2%), terutamanya mencerminkan sumbangan negatif daripada inflasi
pengangkutan yang disebabkan oleh kesan asas.
• Inflasi makanan dan minuman bukan alkohol juga menurun pada bulan itu
(Disember: 0.7%; November: 1.1%).
• Bagi tahun 2018 secara keseluruhan, inflasi berpurata pada 1.0% (2017: 3.7%).
• Tidak termasuk kesan perubahan dasar cukai penggunaan, inflasi teras 1pada
amnya kekal stabil pada 1.6% (November: 1.6%).
Kadar pertumbuhan perdagangan borong dan runcit lebih tinggi pada bulan
November
• Indeks Perdagangan Borong dan Runcit (Index of Wholesale and Retail Trade,
IOWRT) meningkat kepada 8.4% pada bulan November (Oktober: 8.0%). Hal ini
disebabkan oleh segmen runcit yang semakin bertambah baik memandangkan
pengguna terus berbelanja meskipun SST dilaksanakan semula pada 1
September 2018.
• Pertumbuhan segmen-segmen borong dan kenderaan motor lebih sederhana
pada bulan itu.
Pertumbuhan pembiayaan bersih terus menyokong aktiviti ekonomi
• Pembiayaan bersih2 mencatatkan pertumbuhan tahunan 6.3% pada bulan Disember
(November: 7.3%). Hal ini disebabkan terutamanya oleh terbitan bon korporat
1 Pengiraan inflasi teras tidak termasuk barangan yang harganya tidak menentu dan
barangan yang harganya ditadbir. Pengiraannya juga tidak termasuk anggaran kesan
langsung perubahan dasar cukai.
2 Pembiayaan bersih merujuk pinjaman terkumpul sistem perbankan [kecuali institusi
kewangan pembangunan (IKP)] dan bon korporat terkumpul.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
terkumpul yang lebih rendah kepada 8.0% (November: 10.5%), mencerminkan
kesan asas yang tinggi pada bulan Disember 2017.
• Pertumbuhan pinjaman perniagaan terkumpul adalah sederhana sebanyak 5.4%
pada bulan Disember (November: 6.3%), dengan dorongan utama daripada sektor
pembinaan dan harta tanah.
• Pertumbuhan pinjaman isi rumah mampan pada 5.6% (November: 5.7%).
Pasaran kewangan domestik bertambah baik disebabkan oleh sentimen serantau
yang lebih menggalakkan
• Pasaran kewangan domestik pulih pada bulan Disember dalam keadaan dolar
Amerika Syarikat (AS) yang semakin lemah dan perkembangan luaran yang
menyokong sentimen pelabur terhadap pasaran kewangan serantau.
– Ringgit menambah nilai sebanyak 1.2% berbanding dengan dolar AS,
didorong terutamanya oleh jangkaan pasaran bahawa kadar
pengembalian dasar monetari di AS ke paras wajar adalah lebih perlahan.
Sentimen pelabur juga disokong oleh kebimbangan yang semakin reda
berhubung dengan isu pertikaian perdagangan global.
– FBM KLCI meningkat 0.6% berikutan langkah para pelabur mengimbangi
semula portfolio pelaburan mereka ke dalam aset serantau di tengah-
tengah ketidakpastian mengenai prospek politik dan ekonomi di AS.
Keadaan ini adalah susulan penutupan perkhidmatan kerajaan AS dan
unjuran pertumbuhan yang lebih rendah oleh Federal Reserve AS.
– Kadar hasil MGS 5 tahun menyusut 9.5 mata asas meskipun terdapat
aliran keluar bukan pemastautin dalam pasaran MGS, susulan belian aktif
pelabur institusi domestik yang menambah pemegangan MGS mereka
sebanyak RM2.7 bilion pada bulan itu
Permodalan sistem perbankan kekal kukuh
• Institusi kewangan berada pada kedudukan yang kukuh untuk berhadapan
dengan sebarang kejutan makroekonomi dan kewangan yang teruk. Hal ini
demikian kerana terdapat lebihan penampan3 modal sebanyak RM143 bilion
pada bulan Disember 2018.
3 Merujuk modal yang melebihi keperluan jumlah modal minimum iaitu sebanyak 8% daripada
aset berwajaran risiko.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
• Sementara itu, nisbah kecukupan modal hanya mencatat sedikit kenaikan
disebabkan sebahagiannya oleh penambahan saham biasa berikutan terdapat
skim pelaburan semula dividen.
Bank Negara Malaysia
31 Januari 2018
310119 Sorotan Bulanan Disember 2018 - BM 1
Slide Number 1
Slide Number 2
310119 Sorotan Bulanan Disember 2018 - BM
SOROTAN BULANAN – DISEMBER 2018
1
Frequently Asked Questions – Licensing Framework for Digital Banks
Last updated: 31 December 2020
Glossary
Digital Bank Policy
Document
Policy document on Licensing Framework for Digital Banks issued on 31
December 2020
Licensing Procedures Policy document on Application Procedures for New Licences under FSA
and IFSA issued on 27 December 2019
Acquisition
Procedures
Policy document on Application Procedures for Acquisition of Interest in
Shares and to be a Financial Holding Company issued on 27 December
2019
FSA Financial Services Act 2013
IFSA Islamic Financial Services Act 2013
2
No Question Answer
Shareholders
1. Under what circumstances would the Bank
allow a foreign shareholder to hold an
aggregate equity interest of more than
50% in the licensed digital bank?
The Bank may make a recommendation to the
Minister of Finance to grant approval to the
proposed shareholder to acquire controlling
equity interest in the proposed licensed digital
bank if the Bank is of the opinion that it would
not be detrimental to the safety and soundness
of the proposed licensed digital bank or
undermine the stability of the financial system.
In assessing the suitability of a proposed
shareholder, including controlling equity holding
by a foreign interest, the Bank will take into
consideration matters that the Bank considers
relevant, including any of the factors set out in
Schedule 6 of the FSA or IFSA and the Policy
Document on Shareholder Suitability.
In licensing digital banks, the Bank is cognisant
that presence of strong and well-managed
domestic banking institutions is important for the
stability of the financial system and its orderly
growth and development. As set out in
paragraph 8.4 of the Digital Bank Policy
Document, preference will be accorded to an
application where the controlling equity interest
in the proposed licensed digital bank resides
with Malaysians.
2. How will the Bank assess shareholders?
Will it be purely based on financial
strength, or will the Bank also consider
other factors such as the size of the
shareholder’s customer base or the
capability of its technology platform?
As set out in paragraph 8.1 of the Digital Bank
Policy Document, the Bank will have regard to
factors set out in Schedule 6 of the FSA and
IFSA. In this regard, the Bank will consider both
the nature and sufficiency of the financial
resources of the proposed licensed digital bank
shareholder as a source of continuing financial
support to a licensed digital bank as well as the
business record and experience of the
shareholder.
In making an assessment, the Bank will also
consider the availability of resources and
expertise contributed by the shareholder that is
relevant for delivering the objectives of the
licensed digital bank. For example, the
shareholder’s experience in or access to
transformative technology in the development
and delivery of financial services, as well as the
shareholder’s own knowledge/ experience of
certain business sectors/markets or access to
the requisite knowledge.
3
3. Are applicants involved in money service
business or designated payment
instrument issuer recognised as having
track record of operating in a regulated
environment?
In assessing the suitability of the shareholder of
the proposed licensed digital bank, the Bank will
have regard to the ability of the applicant to
contribute to the risk management and
compliance capabilities of the licensee. This
may be demonstrated by a track record of
operating in a highly regulated environment that
is comparable in intensity and complexity to that
of banking business.
Minimum capital funds
4. On the minimum capital funds for the
licensed digital bank,
• Is the applicant required to demonstrate
availability of the capital funds during
submission of the application for the
digital bank licence?
• When should the funds be transferred
into the proposed licensed digital bank?
• What are the components of the capital
funds?
As part of submission of information for
assessment of the licence application, the
applicant must indicate the source of funds that
would be made available to meet the capital
requirement for the proposed digital bank.
For greater clarity, before the Bank makes a
recommendation to the Minister of Finance, the
applicant shall provide the Bank confirmation
with supporting documents demonstrating that
funds have been transferred to the proposed
licensed digital bank in the form of the required
amount of paid-up capital.
For further information on the components of
capital funds, please refer to the policy
document on Capital Funds.
Business plan development and submission
5. What are the key considerations applied by
the Bank in assessing whether the
business plan of a proposed licensed
digital bank reflects a sustainable business
model?
In assessing whether a proposed business plan
reflects a sustainable business model, the Bank
will consider several factors, including the
following but not limited to:
• whether the business plan has a clear
competitive edge that would be a driving
factor for business growth. This may include
the application of advanced technological
platforms or capabilities distinct to the
licensed digital bank;
• whether there is any undue reliance on non-
recurring sources of income to enhance
short-term profitability;
• whether the financial projections are
reasonable and commensurate with the level
of risks that the licensed digital bank may
face and its capacity to effectively manage
such risks;
• whether the financial projections
demonstrate a clear path to profitability and
longer-term viability based on reasonable
and supportable assumptions; and
• whether the applicant can credibly
demonstrate the capacity to implement
sustainable governance, infrastructure and
4
processes which will be able to support
scaling up of business.
6. Can the applicant make changes to the
business plan after a formal application
has been submitted to the Bank?
In view that the business plan is an integral
component in the licensing assessment of the
proposed licensed digital bank, an applicant is
expected to exercise due care in ensuring
comprehensiveness of the business plan, which
should be thoroughly deliberated at the
applicant’s board prior to the formal submission
to the Bank.
An application for the digital bank licence will
only be considered complete when the Bank
has received the required documents and
information, including the final business plan.
Upon approval of the licence, the Bank expects
the Board of the licensed digital bank to take
ownership and ensure feasibility of
implementation of the business plan. During the
operational readiness phase, the licensed digital
bank’s Board may make appropriate
adjustments to the implementation plan,
provided they do not alter substantively the
commitments made under the application for
the licensing of the proposed licensed digital
bank, or key elements of the business plan that
were material to the Bank’s assessment of the
application.
Permissible business or activities
7. Does the scope of digital banking business
covers the following activities:
• Offering cryptocurrencies or handling
settlement between cryptocurrency and
fiat currency
• Offering of fund management products,
investment banking products and
services, broking and asset
management services
• Accepting foreign currency deposits
(i) With regards to digital assets1:
• A licensed digital bank who wishes to
partake in digital asset activities must
meet the relevant regulatory requirements
set by the relevant regulator, depending
on the type of business activity.
• The Securities Commission Malaysia (the
SC) regulates fundraising via digital token
offering and Initial Exchange Offering
platforms; trading of digital assets via
digital asset exchanges; and the provision
of digital asset custodian services.
Notwithstanding this, a licensed digital
bank is also required to comply with the
Bank’s requirements under the policy
document on Introduction of New
Products.
• Any issuance or dealing of digital assets
with a payment function, or usage of
digital assets for the purpose of payments,
will need to comply with relevant laws and
regulations relating to payments and
1 Digital assets include digital currencies and digital tokens
5
currency matters. Notwithstanding this,
digital assets are not legal tender and are
not a payment instrument that is currently
regulated by the Bank.
(ii) With regards to capital market activities, a
licensed digital bank would be considered
as a licensed bank, which is a category of
registered persons under the Capital
Market Services Act 2007 (CMSA). A
registered person may carry out certain
capital market activities as set out in the
Second Column of Schedule 4 of the
CMSA.
(iii) With regards to foreign currency deposits,
a licensed digital bank is allowed to accept
foreign currency deposits.
8. Could a licensed digital bank carry out
limited non-financial activities?
In accordance with section 14 of the FSA or
section 15 of the IFSA, a licensed digital bank is
not allowed to carry on any business or activity
that is not for the purpose or in connection with
its licensed digital banking business, unless the
Bank issues a specification that allows such
activity. The licensed digital bank is advised to
engage the Bank where it plans to request for
any such specification.
9. Can a licensed digital bank leverage on
digital technologies in the supply of
financial services, such as:
• AI, machine learning or big data
analytics for credit assessment and
credit decisions
• Robo-advisors for digital client
onboarding, customer risk profiling,
automated digital advice and customer
portfolio management
Yes, the Bank expects that analytical models
developed for the purpose of making business
and / or lending decision should be subject to a
robust and continuous validation process to
ensure these models continue to be fit-for-use.
In deploying these technology, licensed digital
banks shall be guided and comply with the
relevant policy documents such as Risk
Management in Technology (RMiT), e-KYC,
Outsourcing, Credit Risk and Risk-Weighted
Capital Adequacy Framework.
10. Could licensed digital banks serve
customers, for example collect deposits
and offer loans, beyond the unserved and
underserved segments?
The framework for licensing of digital banks is
developed with the primary aim of expanding
meaningful access to and responsible usage of
financial solutions for the underserved and
unserved market segment.
As such, the overall conduct of the digital
banking business of the licensed entity is
expected to be aligned with the above financial
inclusion objectives, where the commitment
would be reflected as part of the performance
indicator of the licensed digital bank.
Provision of any financial services beyond the
underserved and unserved segment should not
substantively steer the licensed digital bank
6
away from, or otherwise compromise the
delivery of the above commitments.
11. Who would the Bank consider as unserved
and/or underserved segment?
Generally, the unserved and/or underserved
segments are a group of individuals and
businesses whose needs for financial products
and services are not adequately served or met.
Examples of factors that may contribute to this
include:
• The customer segment faces challenges in
obtaining financial services due to higher
information asymmetry and higher risk
profile. This may be due to the lack of credit
history, collateral or consistent source of
income. For example, start-ups, SMEs with
insufficient collateral, SMEs in high-growth
sectors, lower income segments, self-
employed individuals, first-time borrowers,
individuals who recently joined the workforce
and retirees.
• The customer segment has low level of
financial literacy or limited understanding of
the formal processes to obtain financial
services, which may be due to the education
level, language barriers or no access to the
right information. For example, customer has
minimal understanding of the range of
financial products available and its benefits
or perceives that purchasing a particular
financial product is a complicated process or
requires a lot of documentation; or
• The customer segment is physically difficult
to reach or be served through traditional
means. For example, customer residing in
hard-to-reach locations or persons with
disabilities.
Licensed digital banks are expected to identify
their target unserved or underserved
segment(s) and leverage on technology,
alternative data and in-depth understanding of
customer behaviour in order to meet the needs
of their target segment. Financial products
designed and offered towards this segment
should also foster responsible usage as well as
improve the overall financial well-being of the
consumer.
12. Will there be restrictions imposed on
product features or pricing that licensed
digital banks can offer?
Licensed digital banks shall at all times ensure
a fair, responsible and professional conduct in
dealing with financial consumers, in line with the
requirements imposed on existing licensed
banks. Licensed digital banks must also have in
place customer suitability procedures to ensure
7
that products sold meet the needs and financial
circumstances of the customers.
The relevant policy documents and guidelines
are, amongst others, the policy documents on
Introduction of New Products, Fair Treatment of
Financial Consumers, and Imposition of Fees
and Charges on Financial Products and
Services.
13. Could a licensed digital bank perform the
following cross-border supply of services:
• launch a product outside of Malaysia
for Malaysian customers residing
overseas?
• accept customers that are based
outside of Malaysia, for example by
onboarding foreign customers from
their respective countries?
• market products sold by third party
providers from foreign countries?
With respect to offering products to customers
outside of Malaysia, or marketing products by
foreign counterparts to Malaysian customers,
licensed digital banks are generally bound to
the same requirements as licensed banks.
• A licensed digital bank may offer products
outside of Malaysia or accept customers
outside of Malaysia subject to the other
country’s relevant rules and regulations.
• With regard to offering banking products
sold by financial institutions outside of
Malaysia, a licensed digital bank is
prohibited from doing so under section
29(1) of the FSA and section 26(1) of IFSA,
as the case may be. Generally, a foreign
financial institution is required to establish
commercial presence in Malaysia and
obtain the appropriate licence or approval
before offering financial products to
Malaysian customers residing in Malaysia.
14. Are there restrictions on overseas
expansion of licensed digital bank during
foundational phase?
During the foundational phase, generally a
licensed digital bank may expand its business
overseas, subject to the Bank’s approval as
stipulated in the FSA/ IFSA. In deciding whether
to approve such expansion, the Bank may
consider several factors including the following:
• The impact and benefit of the expansion to
the licensed digital bank and to Malaysia
from financial and non-financial
perspective;
• The strength of governance and oversight
by the licensed digital bank over the
enlarged operations; and
• Any impediments to the Bank’s ability to
supervise the overall group.
In considering applications to expand during the
foundational phase, the Bank generally expects
the licensed digital bank to remain clearly
focused on delivering its committed value
proposition in Malaysia and prioritise its
resources towards building strong local
business operations.
8
15. There is insufficient data in credit database
on the unserved and underserved
segments. Will licensed digital banks have
access and legal grounds to alternative
data to be able to serve the
unserved/underserved such as pensions,
health insurance or tax database?
Licensed digital banks will have access to the
Central Credit Reference Information System
(CCRIS). A licensed digital bank may also enter
into commercial arrangements to partner with
other credit bureaus or alternative data
providers.
Independent External Assurance
16. On the appointment of independent
external party:
• Does the appointment require approval
by the Bank?
• How should the applicant assure the
Bank that the independent external
party is independent and is free from
conflict of interest?
• Should the independent external party
provide assurance for both business
plan and internal controls/IT system, or
can it be two separate parties?
An applicant is not required to seek the Bank’s
approval for the appointment of the independent
external party. However, the independent
external party should meet the criteria as set out
in paragraphs 10.4 and 10.5 of Digital Bank
Policy Document.
In assessing the independence of the external
party, an applicant may refer to professional
standards and practices, code of conduct or any
other criteria considered relevant by the
applicant for the evaluation process.
The assurance for business plan and internal
controls/IT system may, but are not required to,
be provided by the same parties.
Exit plan
17. In the event of an exit, could the exit plan
provide the following:
• A shareholder or affiliate entity who is a
bank to assume the assets and
liabilities of the licensed digital bank?
• Sale of certain business lines for
continuity of non-banking business?
The exit plan could provide for the two options.
Similar to the licensing process, exit plans
involving shareholders should be guided by
paragraph 8 of the Digital Bank Policy
Document, as well as existing requirements
relating to shareholders, such as those
stipulated in the Licensing Procedures and
Acquisition Procedures.
18. Can the exit plan be determined at
segment level, such that the licensed
digital bank can initiate exit at a certain
segment rather than exiting the whole
business?
As highlighted in paragraph 11.2 of the Digital
Bank Policy Document, an exit plan must result
in winding down or transfer of the licensed
digital bank’s business. This is to ensure that
applicants are prepared to exit the business in
the event that such business models prove to
be unsustainable or ineffectual. Nevertheless,
applicants may prepare exit plans at segment
level to support the overall exit plan.
9
19. Are applicants required to conduct
scenario analysis on the respective exit
options?
Applicants are not required to conduct scenario
analysis to the extent stipulated in the Exposure
Draft on Recovery Planning. Nonetheless, to
effectively identify measures that can be taken
as part of the exit plan, applicants are expected
to consider the impact and feasibility of such
measures under different scenarios and/or
circumstances to ensure an orderly exit, as
stipulated in paragraph 11.5 of the Digital Bank
Policy Document.
Key responsible persons
20. On the proposed key responsible persons:
• Is there a requirement for the proposed
key responsible persons to be
Malaysian?
• Can the applicant submit anonymised
curriculum vitae of the proposed
persons?
• Can the applicant make changes to the
proposed persons after the formal
submission to the Bank?
There are currently no requirements for key
responsible persons to be Malaysians.
Notwithstanding this, key responsible persons
are subjected to specific requirements and
processes, among others:
• Chief Executive Officer of a licensed digital
bank shall have his principal or only place of
residence within Malaysia, unless the Bank
otherwise approves (section 55 of the FSA
or section 64 of the IFSA); and
• Expatriates application are subjected to
approval by the Bank.
As set out in paragraph 13.1 of the Licensing
Procedure, the applicant must provide the
names and current curriculum vitae of proposed
key responsible persons to facilitate the Bank’s
assessment on whether the propose licensed
digital bank will be operated responsibly by
persons with suitable competence and
experience.
Where the applicant is unable to provide the
required information at the application stage,
the applicant must notify the Bank in writing and
the justification for the inability to provide the
same. In such a case, the Bank may require an
applicant to provide any other information to
facilitate the assessment. The submission of an
application is only considered as complete
when the Bank has received the required
information.
Information received at the application stage will
be kept confidential by the Bank and Key
Responsible Persons identified may be
indicative. However, applicants should note that
upon granting of licence, failure to secure
suitable persons in key roles could affect the
10
licensing decision or operational readiness
assessment.
Group resources
21. Could a licensed digital bank leverage on
its group affiliate, or outsource Shariah
committee to a third party?
Outsourcing of Shariah committee function to a
third party is not allowed. Nevertheless, if the
licensed digital bank is within a financial group
where there is an existing licensed person
under the IFSA, the licensed digital bank may
leverage on the existing Shariah committee
within its group affiliate, subject to obtaining the
Bank’s prior written approval in accordance with
section 30(2) of the IFSA. In this regard, the
Bank will assess and provide its approval
depending on the merits of each case.
22. Could the licensed digital bank share its
data with its parent bank, other
shareholders or other strategic partners?
Licensed digital banks are subject to the strict
secrecy obligation under section 133 of the FSA
or section 145 of the IFSA. Licensed digital
banks may share its customer information with
its parent bank or other parties only for
legitimate purposes that fall within the scope of
permitted disclosure under Schedule 11 of the
FSA or IFSA. In addition, the permitted
disclosures under Schedule 11 of the FSA or
IFSA are subject to conditions specified by the
Bank in the policy document on Management of
Customer Information and Permitted
Disclosures.
Group resources
23. Could licensed digital banks have access
to the customer base of its
partner/shareholder(s)?
A licensed digital bank may access the
customer base of its parent or affiliate
companies or shareholders subject to
compliance with all relevant data protection
laws and regulations, i.e., the Personal Data
Protection Act 2010.
Nonetheless, where the parent or affiliate
company or the shareholder is a financial
institution as defined in section 131 of the FSA
or Islamic financial institution as defined in
section 143 of the IFSA, any arrangement for
the licensed digital bank to access their
customer base must be in compliance with the
secrecy provisions under the FSA or IFSA,
respectively.
11
Operational readiness
24. What are the consequences of
unsatisfactory results of operational
readiness assessment for a licensed digital
bank?
In the event that the Bank is not satisfied with
the outcomes of the operational readiness
review, the licensed digital bank will not be
allowed to commence its digital banking
business.
Regulatory framework applicable to licensed digital banks
25. What is the licence fee for a licensed digital
bank?
The annual fees payable by a licensed digital
bank to the Bank are RM150,000.
For further information, please refer to the
Financial Services (Fees) Regulations 2014 or
the Islamic Financial Services (Fees)
Regulations 2014, as published in the Federal
Gazette website.
26. Are licensed digital banks expected to
comply with the same requirements as
other banks, for example requirements on:
• The Anti-Money Laundering,
Countering Financing of Terrorism and
Targeted Financial Sanctions for
Financial Institutions Policy Document
• Foreign Exchange Notices and the
Direction to Financial Institution
• Statutory reserve requirement
• Risk-informed pricing
• Guidelines on the disposal/purchase of
non-performing loans by banking
institutions
• Outsourcing
• Risk Management in IT
• Staff Training Fund and Staff Training
Expenditure
• STATsmart Reporting Requirements
on Data Submission for Reporting
Entities
• Fair treatment of financial consumers
• Basic banking services
• Responsible financing
• Product transparency and disclosure
• Imposition of fees and charges on
financial products and services
• Complaints handling
• Fair debt collection practices
All licensed digital banks are required to comply
with the same rules and requirements as other
licensed banks, except where the specific
requirements applicable to licensed digital
banks are set out in paragraph 14.1 of the
Digital Bank Policy Document.
12
27. On cloud adoption:
• What guideline should applicants refer
to with regards to adoption of public or
private cloud?
• Will applicant need to obtain specific
approval from the Bank to use cloud?
• Are there any restrictions to subscribe
to cloud providers outside of Malaysia?
In deploying cloud technology, licensed digital
banks shall be guided and comply with the
RMiT policy document, which require amongst
others:
• where cloud services are intended to be
used for non-critical systems, to provide a
prior notification to the Bank; and
• where public cloud is intended to be used for
critical systems, to conduct a prior
consultation with the Bank.
Provided that all necessary safeguards are in
place, the Bank does not currently restrict a
licensed digital bank from subscribing to cloud
providers outside of Malaysia. Aside from the
RMiT policy document, licensed digital banks
shall also refer to Outsourcing policy document
where relevant.
28. Please provide confirmation if licensed
digital banks will have access to the
following systems, and what would be the
requirements for participation:
• Payment systems such as RENTAS,
IBG, RPP- Duitnow, QR, e-SPICK
• CCRIS database
• Interbank lending and borrowing
market (money market and foreign
exchange market)
• The Bank liquidity facility
A licensed digital bank will have access
(including the same requirements for
participation) to the same systems and facilities
as an existing licensed bank.
29. Would licensed digital banks be subject to
the Bank’s supervision during the
foundational phase?
Licensed digital banks and its Financial Holding
Companies shall be subject to the Bank's
supervision both during and after the
foundational phase.
Deposit insurance
30. Does a licensed digital bank need to be a
PIDM member?
Pursuant to section 36(1) of the Malaysia
Deposit Insurance Corporation Act 2011, a
licensed digital bank will automatically become
a member of PIDM once it is licensed to carry
on digital banking business.
Exiting the foundational phase
31. If a licensed digital bank did not meet its
value proposition after five years, will it be
forced to exit?
As stated in paragraph 15.5 of the Digital Bank
Policy Document, a licensed digital bank that
fails to show satisfactory progress in achieving
the committed value propositions as described
in its business plan by the end of the fifth year
from the commencement of its operation may
be subject to an enforcement action, including
direction to implement its exit plan.
13
Depending on the gravity of each case, actions
can be taken against such licensed digital
banks ranging from:
(i) enforcement action under section 234 of
the FSA or section 245 of the IFSA;
(ii) action under section 259(4) of the FSA or
section 270(4) of the FSA; and
(iii) revocation of licence under section 20(1)
of the FSA or section 18(1) of the IFSA.
| Press Release |
31 Dec 2020 | Monetary and Financial Developments in November 2020 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-november-2020 | https://www.bnm.gov.my/documents/20124/2137598/i_en.pdf | null |
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Monetary and Financial Developments in November 2020
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Monetary and Financial Developments in November 2020
Embargo :
For immediate release
Not for publication or broadcast before
1500 on
Thursday, 31 December 2020
31 Dec 2020
Headline inflation declined to -1.7% in November
The decline in headline inflation to -1.7% during the month (October: -1.5%) reflected lower inflation for domestic retail fuel and rental.
Underlying inflation, as measured by core inflation, moderated slightly to 0.7% (October: 0.8%).
The moderation in core inflation reflected the lower inflation for rental and personal care products.
Overall IPI recorded a slight contraction in October
Overall IPI contracted slightly in October (-0.5%; September: 1.0%), weighed mainly by the mining sector amid maintenance closures. The manufacturing sector continued to record positive growth in October (2.4%; September: 4.3%), underpinned by strong performance in the E&E industry and rubber segment.
The E&E industry continued to grow above long-term average at 8.1% (2016– 2019 average: 6.0%) benefiting from the strong global demand for semiconductor products.
Net financing sustained
Net financing growth was sustained at 4.5% (October: 4.5%). Total outstanding loan growth moderated (3.8%; October: 4.3%) while outstanding corporate bond growth increased (6.7%; October: 5.0%) due to two large issuances in the FIREB[1] sector.
Outstanding business loan growth moderated further (1.2%; October: 2.5%) as repayments continued to increase. Loan disbursements to businesses were broadly sustained at RM60.9 billion (October: RM62.0 billion).
Meanwhile, outstanding household loan growth grew by 5.0% (October: 5.1%) as disbursements sustained and remained higher than the historical average at RM29.7 billion (2017–2019 average: RM27.8 billion).
Performance of domestic financial markets broadly improved
Investor sentiments improved in November, due mainly to positive global developments. These include an improved economic outlook amid greater clarity on the direction of US policies following the end of US Presidential Election, and positive development surrounding the approval and deployment of COVID-19 vaccines.
As a result, global equity indices recorded broad-based gains, including recoveries across sectors affected by the pandemic. Amidst this background, the FBM KLCI increased by 6.5% during the month.
The improved risk appetite also led to continued non-resident inflows to the domestic bond market following yield-seeking activities by investors, which contributed to an appreciation of the ringgit against the US dollar by 2.2%. While the government bond market remained supported by these inflows, uncertainties surrounding the parliament voting of Budget 2021 led to marginally higher yield in the 10-year MGS towards the end of the month.
Banking system capitalisation remained strong
Banking system capitalisation levels remain well-positioned to absorb earning shocks and support intermediation activity.
Capital ratios were largely unchanged, as new issuances of debt instruments offset the marginal decline in CET1 capital from dividend payments and reduction in unrealised gains from financial instruments capital component.
Banks’ excess capital buffers[2] stand at RM125.1 billion as at November 2020.
---
1 Refers to ‘Finance, Insurance, Real Estate and Business Services’.
2 Refers to total capital above the regulatory minimum, and includes the capital conservation buffer (2.5%) and bank specific higher minimum requirements.
See also:
Press release [PDF] Related Assets
Monthly Highlights and Statistics in November 2020
Bank Negara Malaysia
31 December 2020
© Bank Negara Malaysia, 2020. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
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4.00
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2.0
4.0
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Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
a
y
2
2
J
u
n
2
2
J
u
l
2
2
A
u
g
2
2
S
e
p
2
2
O
c
t
2
2
N
o
v
2
2
D
e
c
2
2
J
a
n
2
3
F
e
b
2
3
M
a
r
2
3
A
p
r
2
3
M
a
y
2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
31 Dec 2020 | Detailed Disclosure of International Reserves as at end-November 2020 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-november-2020 | null | null |
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Detailed Disclosure of International Reserves as at end-November 2020
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Detailed Disclosure of International Reserves as at end-November 2020
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1200 on
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31 Dec 2020
In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD105,336.2 million, while other foreign currency assets amounted to USD1,511.3 million as at end-November 2020. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and the maturity of foreign currency Bank Negara Interbank Bills, amounted to USD8,473.6 million. The short forward positions amounted to USD6,425.2 million while long forward positions amounted to USD1,485 million as at end-November 2020, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans. Projected foreign currency inflows amount to USD2,438.4 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD327.6 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-November 2020, Malaysia’s international reserves remain usable.
I. Official reserve assets and other foreign currency assets
II. Predetermined short-term net drains on foreign currency assets
III. Contingent short-term net drains on foreign currency assets
IV. Memo Items
Bank Negara Malaysia
31 December 2020
© Bank Negara Malaysia, 2020. All rights reserved.
| null | Press Release |
22 Dec 2020 | International Reserves of Bank Negara Malaysia as at 15 December 2020 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-15-december-2020 | null | null |
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International Reserves of Bank Negara Malaysia as at 15 December 2020
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1500 on
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22 Dec 2020
The international reserves of Bank Negara Malaysia amounted to USD105.7 billion as at 15 December 2020. The reserves position is sufficient to finance 8.8 months of retained imports and is 1.2 times total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities - 15 December 2020
Bank Negara Malaysia
22 December 2020
© Bank Negara Malaysia, 2020. All rights reserved.
| null | Press Release |
21 Dec 2020 | The Financial Markets Committee (FMC) will drive the development of an alternative financial benchmark rate for Malaysia | https://www.bnm.gov.my/-/the-financial-markets-committee-fmc-will-drive-the-development-of-an-alternative-financial-benchmark-rate-for-malaysia | null | null |
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The Financial Markets Committee (FMC) will drive the development of an alternative financial benchmark rate for Malaysia
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The Financial Markets Committee (FMC) will drive the development of an alternative financial benchmark rate for Malaysia
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1415 on
Monday, 21 December 2020
21 Dec 2020
The Financial Markets Committee[1] (FMC) has been appointed as the committee to oversee the development of an alternative reference rate (ARR) for Malaysia and to deliberate on the continuity of Kuala Lumpur Interbank Offered Rate (KLIBOR).
Financial benchmark reforms are underway internationally to improve the integrity of global interest rate benchmarks or reference rates, in line with the Financial Stability Board’s (FSB) recommendation. The Bank envisages the identified ARR will run in parallel with the existing KLIBOR, thus providing sufficient time for market participants and stakeholders to prepare for the adoption of ARR.
The FMC comprises representatives from Bank Negara Malaysia, Securities Commission Malaysia, financial institutions, insurers, fund managers and corporate treasurers. It will be the key forum to discuss the latest international developments on financial benchmarks and is responsible for providing recommendations on the strategic direction for the financial benchmark rates in Malaysia.
The first key task for the committee would be to conduct an initial public consultation on the identification of a suitable ARR and enhancements to the KLIBOR framework if it is retained. The FMC will also deliberate on industry-wide standards to facilitate the adoption of ARR for financial contracts currently referencing KLIBOR.
Regular updates on the progress achieved by the FMC, including its assessment and recommendations, will be published for reference by all market participants.
[1] The Financial Markets Committee is a committee established by BNM in May 2016 and comprises representatives from Bank Negara Malaysia, financial institutions, corporations, financial service providers and other institutions which have prominent roles or participation in the financial markets.
Bank Negara Malaysia
21 December 2020
© Bank Negara Malaysia, 2020. All rights reserved.
| null | Press Release |
16 Dec 2020 | BNM and SC’s Joint Response on "Policy confusion over cryptocurrencies" | https://www.bnm.gov.my/-/bnm-and-sc-s-joint-response-on-policy-confusion-over-cryptocurrencies->BNM and SC’s Joint Response on Policy confusion over cryptocurrencies | https://www.bnm.gov.my/documents/20124/761691/faq_initiative_onshore_financial_market_v6.pdf, https://www.bnm.gov.my/documents/20124/39730/Guidelines-on-Currency-Quality-and-Handling-Suspected-Counterfeits-Dec2022.pdf | null |
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The Financial Markets Committee (FMC) will drive the development of an alternative financial benchmark rate for Malaysia
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The Financial Markets Committee (FMC) will drive the development of an alternative financial benchmark rate for Malaysia
Embargo :
For immediate release
Not for publication or broadcast before
1415 on
Monday, 21 December 2020
21 Dec 2020
The Financial Markets Committee[1] (FMC) has been appointed as the committee to oversee the development of an alternative reference rate (ARR) for Malaysia and to deliberate on the continuity of Kuala Lumpur Interbank Offered Rate (KLIBOR).
Financial benchmark reforms are underway internationally to improve the integrity of global interest rate benchmarks or reference rates, in line with the Financial Stability Board’s (FSB) recommendation. The Bank envisages the identified ARR will run in parallel with the existing KLIBOR, thus providing sufficient time for market participants and stakeholders to prepare for the adoption of ARR.
The FMC comprises representatives from Bank Negara Malaysia, Securities Commission Malaysia, financial institutions, insurers, fund managers and corporate treasurers. It will be the key forum to discuss the latest international developments on financial benchmarks and is responsible for providing recommendations on the strategic direction for the financial benchmark rates in Malaysia.
The first key task for the committee would be to conduct an initial public consultation on the identification of a suitable ARR and enhancements to the KLIBOR framework if it is retained. The FMC will also deliberate on industry-wide standards to facilitate the adoption of ARR for financial contracts currently referencing KLIBOR.
Regular updates on the progress achieved by the FMC, including its assessment and recommendations, will be published for reference by all market participants.
[1] The Financial Markets Committee is a committee established by BNM in May 2016 and comprises representatives from Bank Negara Malaysia, financial institutions, corporations, financial service providers and other institutions which have prominent roles or participation in the financial markets.
Bank Negara Malaysia
21 December 2020
© Bank Negara Malaysia, 2020. All rights reserved.
|
Frequently Asked Questions
Questions Answer
Hedging flexibilities for institutional investors
1. Who is eligible for dynamic hedging? • Resident and non-resident institutional
investors upon registration with BNM,
excluding –
(a) non-resident banks; and
(b) non-resident securities companies.
• The registration for dynamic hedging is to
be undertaken at firm level.
2. If an investor is registered at the firm
level, is it permitted to “carve out”
specific funds for passive hedging?
• Yes. During the registration, the investor
has to make a one-off declaration of funds
to be used in dynamic hedging. Funds to
be “carved out” for passive hedging are not
eligible for dynamic hedging.
3. What hedging instruments are
permissible under foreign exchange
risk management?
• The hedging instrument allowed is buying
or selling of FX/MYR forward.
4. What are the underlying assets eligible
for dynamic hedging?
• For non-resident institutional investors,
eligible asset are:
i. investment in ringgit-denominated debt
securities on Real-time Electronic
Transfer of Funds and Securities
System (RENTAS);
ii. investment in ringgit-denominated
equity securities on Bursa Malaysia
Berhad; or
iii. temporary placement in ringgit deposits
or deposit-like securities offered by
licensed onshore banks using ringgit
proceeds arising from the selling of
existing ringgit-denominated securities
as defined in subparagraphs (i) and (ii)
above pending reinvestment of such
ringgit proceeds.
• For resident institutional investors, eligible
asset are:
i. investment in foreign currency-
denominated debt securities;
ii. investment in foreign currency-
denominated equity securities; or
iii. temporary placement in foreign currency
Questions Answer
deposits or deposit-like securities
offered by licensed onshore banks using
foreign currency proceeds arising from
the selling of existing foreign currency-
denominated securities as defined in
subparagraphs (i) and (ii) above
pending reinvestment of such foreign
currency proceeds.
5. Do investors need to sign standard
agreement to enter into onshore
forward transaction?
• No. However, investors are encouraged to
sign a standard agreement to safeguard
their interests.
6. What is the allowable threshold for
dynamic hedging?
• A non-resident institutional investor
registered with the Bank is allowed to –
i. enter into forward contracts to sell ringgit
up to 100% of its invested underlying
ringgit-denominated asset; or
ii. enter into forward contracts to buy
ringgit up to 25% of its invested underlying
ringgit-denominated asset.
• Meanwhile, resident institutional investor
registered with the Bank is allowed to enter
into forward contracts to buy ringgit up to
100% of its invested underlying foreign
currency-denominated asset.
7. What will happen in the event that an
investor breaches the prudential
threshold?
• The investor shall unwind the forward
position to the permitted limit. BNM will
advise on the permitted timeline to unwind
on a case-by-case basis (within 7 business
days). Failure to do so may result in BNM
reviewing the investor’s eligibility.
8. Are investors allowed to net settled the
forward transaction in USD?
• Yes, settlement of forward transactions can
be on gross or net basis.
9. Who can non-resident investors
approach to enter into dynamic
hedging?
• Non-resident investors can approach
licensed onshore banks, appointed
overseas office1, or approved appointed
non-resident financial institutions2 for
dynamic hedging.
1 Appointed overseas office (AOO) refers to appointed overseas
parent company, subsidiary company, sister company, head
office or branch of a licensed onshore bank’s banking group,
excluding a licensed International Islamic bank.
2 Appointed NRFI refers to non-resident financial institution
outside onshore bank’s banking group which has been
approved by BNM to participate in the AOO Framework.
Questions Answer
10. Can an investor use their existing
Legal Entity Identifier (LEI)?
• Yes. BNM will provide an ID to investors
without LEI. More information on LEI is
available at https://www.leiroc.org/.
11. Is it requirement to have segregated
cash accounts for settlement of
onshore forward transactions?
• No.
12. Illustration of Hedging Flexibility for Institutional Investors
Process Flow
* Ringgit Operations Monitoring System
(a) Registration:
• Institutional investor is required to do a one-off registration by submitting the
Forward Market Participation Form to BNM. The form is available at BNM’s
website, www.bnm.gov.my.
• BNM shall notify the institutional investor in writing upon acceptance of the
registration.
(b) Trading:
• Registered institutional investor may engage with any licensed onshore bank or
appointed overseas office to undertake the forward transaction.
• Licensed onshore bank is required to perform a one-off verification of an
institutional investor’s registration status with BNM prior to entering into such
transaction.
(c) Post Trade:
• Licensed onshore bank shall report to BNM all forward transactions via ROMS.
Illustration
• A non-resident investor holds RM100 million worth of MGS. The investor is
allowed to undertake forward transaction to sell ringgit up to a prudential
threshold of RM100 million or undertake forward transaction to buy ringgit up to a
prudential threshold of RM25 million.
Position\Day T+1 T+2 T+3 T+4 T+5
New Forward -20 +10 -15 +25 +30
Net forward position -20 -10 -25 0 +30
Institutional
investor
Appointed
Overseas
Office (AOO)
Licensed
Onshore Bank ROMS*
One-off
registration
(a) Registration (b) Trading (c) Post Trade
Reports forward transaction
BNM
Verify registration status of institutional investor with BNM
https://www.leiroc.org/
Questions Answer
Responsibilities of Parties Involved in Dynamic Hedging
Party Responsibilities
Institutional Investors
• To perform a one-off registration with BNM before
participating in dynamic hedging
• To inform the Licensed Onshore Bank or Appointed
Overseas Office on their LEI/ID provided by BNM for the
purposes of reporting on ROMS
• To ensure net forward position is within the prudential
threshold
Licensed Onshore Bank
• To perform a one-off verification with BNM on whether
the institutional investor is registered before conducting
forward transactions under dynamic hedging
• To report forward transactions via ROMS with the
institutional investor’s LEI/ID provided by BNM
Custodian Banks
• To provide information on holdings requested by BNM on
a case-by-case basis
Appointed Overseas
Office (If applicable)
• To perform a one-off verification with BNM on whether
the institutional investor is registered before conducting
forward transactions under dynamic hedging
• To inform the Licensed Onshore Bank on forward
transactions under dynamic hedging on behalf of
institutional investors for the purpose of reporting on
ROMS
Hedging without documentary evidence
13. Can a resident undertake hedging for
an amount exceeding RM6 million?
• Yes. However, the flexibility to hedge
without documentary evidence is only
applicable for hedging up to RM6 million.
For hedging exceeding RM6 million, the
normal due diligence process by the
onshore bank applies.
14. How is the RM6 million limit for the
flexibility to hedge foreign exchange
transactions computed?
• The computation of the RM6 million limit is
based on total outstanding of net ringgit
position (notional) at any one time, per
client, per licensed onshore bank.
Example:
i. A resident may buy RM6 million ringgit
forward [NOP = RM6 million] and
subsequently sells RM8 million ringgit
forward [NOP = RM2 million].
(Allowed)
ii. A resident buys RM8 million ringgit
Questions Answer
forward [NOP = RM8 million] and
subsequently sells RM2 million ringgit
forward [NOP = RM6 million].
(Subject to the onshore banks’ normal
due diligence process including to
provide documentary evidence)
15. What is the pre-requisite for residents
to enjoy the flexibility?
• Residents only need to provide a one-off
declaration that the FX transactions are for
hedging purposes.
• With this flexibility, residents can also
cancel and unwind the forward contract
entered.
16. Is a resident institutional investor
eligible to the flexibility to hedge up to
net open position limit of RM6 million
per bank?
• Yes. In addition to the dynamic hedging,
the resident institutional investor can also
hedge up to RM6 million, subject to one-off
declaration on the hedging purpose.
17. Can a resident cancel forward foreign
exchange contracts without sighting
documents?
• Yes, provided the cancellation is
undertaken with the same bank and the
outstanding net ringgit position for contracts
entered under this flexibility does not
exceed RM6 million at any one time.
18. What is the difference between the
current due diligence process where a
bank is allowed to facilitate FX
transaction and the new flexibility?
• Under the new flexibility, the onshore bank
may facilitate FX transactions based on a
one-off declaration so long as the
transaction is undertaken within the
specified parameters.
• For transactions outside the specified
parameters, a bank can continue to
facilitate such transactions based on KYC,
which includes periodic sighting/checking of
documentary evidence.
19. Are residents allowed to hedge import
or foreign currency loan obligations
under this flexibility?
• Yes, up to RM6 million net ringgit position
and shall not exceed the value of 6 months
of the import and foreign currency loan
obligations.
Hedging with documentary evidence
20. Whether a resident is allowed to enter
into forward contracts to sell foreign
currency into ringgit for tenure more
than 6 months?
• Yes, the resident is allowed to enter into
forward contracts for sale of foreign
currency for any tenure for financial
account transaction or current account
transaction based on firm commitment or
Questions Answer
anticipatory basis.
21. Whether a resident is allowed to enter
into forward contracts to buy foreign
currency for tenure more than 6
months?
• For import or foreign currency loan
obligation: tenure shall not exceed 6 months
• For investment purposes: any tenure
subject to prudential limit
22. Whether a resident is allowed to roll-
over forward contracts for import or
foreign currency loan obligation
exceeding 6 months?
• Yes, only arising from delay of import
payment or foreign currency loan
repayment.
23. Whether over-hedged forward position
is required to be cancelled?
• Yes.
24. Can an ultimate holding company
hedge foreign exchange exposure on
behalf of its subsidiary?
• Prior approval from the Bank is required for
companies to hedge foreign exchange
exposure on behalf of a subsidiary.
Appointed overseas office
25. Can a resident buy ringgit through
appointed overseas offices?
• This flexibility is open to non-residents or
resident individuals physically located
outside Malaysia to facilitate their access to
onshore banks.
26. Can non-residents obtain ringgit trade
financing from appointed overseas
offices?
• Yes, a non-resident can obtain ringgit trade
financing from appointed overseas offices
to settle trade obligations with the resident.
27. Are appointed overseas office allowed
to display ringgit exchange rates and
impose a margin?
• Appointed overseas offices are allowed to
display ringgit exchange rates and impose
a margin which is agreed by the onshore
bank.
Export proceeds and foreign currency accounts
28. Can exporters retain foreign currency
funds with overseas banks?
• Under the prevailing FEA rules, resident
exporters are required to receive and retain
the full value of export proceeds with
onshore banks1.
29. How is the 25% retention of export
proceeds computed?
• The 25% is computed based on each
receipt of export proceeds.
1 Onshore banks refer to licensed banks and licensed investment banks under the Financial Services Act 2013
or licensed Islamic banks under the Islamic Financial Services Act 2013.
Questions Answer
30. Is export trade financing facility subject
to the 25% retention limit?
• For export trade financing facility, the 25%
retention is computed upon drawdown of
the facility.
• Actual export proceeds to be used for
repayment of export trade financing.
• Notwithstanding the above, for open
account trade financing facilities where the
loan facility is not provided by the same
bank who will be receiving the export
proceeds, the exporter is allowed to retain
100% of the trade financing facility in trade
foreign currency account and apply the
25% retention limit at the point of receiving
the export proceeds.
31. Does this requirement include
proceeds from services?
32. Does this requirement include
proceeds from toll manufacturing
performed by resident for non-
resident2?
33. Does this requirement include
proceeds from merchanting trade3?
• The requirement is only applicable to
proceeds from the export of goods.
Export of goods is defined as:
(a) movement or transfer of goods by
land, sea or air from Malaysia to any
territory outside of Malaysia; or
(b) transfer of ownership in goods from
Malaysia by a resident to a non-
resident abroad or a Labuan entity
which was declared by the Bank as
a non-resident under section
214(6)(a) of the Financial Services
Act 2013 (FSA) or under section
225(6)(a) of the Islamic Financial
Services Act 2013 (IFSA).
• The requirement is applicable on proceeds
derived from toll manufacturing performed
by resident for non-resident.
2 Toll manufacturing performed by resident for non-resident refers to an arrangement where the resident
receives semifinished goods from non-resident for further processing and onward selling to the non-resident.
3 Merchanting trade refers to the selling of goods to a non-resident where the goods are shipped from an
overseas location to another overseas location without entering or leaving the territory of Malaysia.
Questions Answer
• The requirement is not applicable on
proceeds derived from export of services
including merchanting trade.
34. Does the conversion of the remaining
75% export proceeds have to be
undertaken on spot basis?
• The remaining 75% export proceeds can
be converted on spot or forward basis.
35. Are export proceeds received earlier
than maturity of a forward contract
entered to convert foreign currency
export proceeds into ringgit subject to
the 25% retention limit?
• The exporter is allowed to retain export
proceeds in foreign currency in Trade FCA
prior to delivery of the forward contract.
36. Are exporters allowed to convert ringgit
into foreign currency to meet foreign
currency obligations if the retained
foreign currency is insufficient?
• Yes. In addition to utilising the retained
foreign currency for import and loan
obligations, residents (including exporters)
are allowed to convert ringgit into foreign
currency up to the value of 6 months import
and foreign currency loan obligations.
37. Can exporters request to use the same
conversion rate to reconvert export
proceeds converted into ringgit into
foreign currency?
• Yes. Exporters may request to
simultaneously reconvert export proceeds
into foreign currency at the same rate for
the following:
(a) up to the value of 6 months import and
foreign currency loan obligations; and
(b) current international transactions.
38. Is there a time limit on the retention of
the foreign currency proceeds?
• There is no time limit on the retention of the
foreign currency proceeds.
39. What can the retained foreign currency
funds be used for?
• The retained foreign currency can be used
for payments of imports, foreign currency
loan obligations and other current
international transactions (i.e. dividend
payments or remittance for family living
expenses)
40. Can resident companies continue to
borrow foreign currency from resident
entities within its group of entities or its
resident direct shareholder?
41. Can residents enter into cash
sweeping arrangement with other
resident companies within the group of
entities?
• Yes. Source and receipt for the borrowing
may be undertaken as follows:
Source
(Lender’s
account)
Receipt
(Borrower’s
account)
Limit
Investment
FCA
Trade FCA No limit
Ringgit
account
Investment
Questions Answer
FCA
Trade FCA Trade FCA
Ringgit
Account
Investment
FCA
Up to the
borrower’s
investment
limit
• Source and receipt for repayment of the
borrowing may be undertaken as follows:
Source
(Borrower’s
account)
Receipt
(Lender’s
account)
Limit
Investment
FCA, Trade
FCA or ringgit
account up to
repayment
amount
Trade FCA No limit
Ringgit
account
Investment
FCA
Subject to
documentary
proof that the
original
borrowing was
sourced from
the same
investment
FCA
42. Can corporations without export
proceeds convert ringgit into foreign
currency to pay import and loan
obligations?
• Yes. The corporation can convert up to the
value 6 months of import and loan
obligations.
43. Does the export retention limit apply to
resident individual, sole proprietor or
general partnership?
• Yes.
44. Are resident exporters allowed to
transfer foreign currency funds from
Trade FCA to Investment FCA or vice
versa?
• Transfer from Trade FCA to Investment
FCA is subject to the investment limit.
• Transfer from Investment FCA to Trade
FCA is allowed.
• In addition, there is no restriction for
transfer of funds between the same type of
FCA (i.e. Trade FCA to Trade FCA, or
Investment FCA to Investment FCA) of the
same beneficiary.
45. Can resident exporters choose to
convert with banks that offer the best
• Yes, resident exporters may enter into
foreign exchange contracts, spot or forward
Questions Answer
rate? basis with any onshore banks.
Special deposit facility for resident exporters
46. Who is eligible for this Special Deposit
Facility (SDF)?
• The SDF is offered to resident exporters,
which receive ringgit arising from the
conversion of foreign currency export
proceeds.
47. Which banks offer this SDF? • All licensed onshore banks shall offer the
SDF to resident exporters when the
conversion to ringgit is made by the bank.
• Exporters can approach banks with existing
relationship or approach new banks to
inquire on this SDF.
48. How to activate this SDF? • Upon receipt of the foreign currency export
proceeds, the bank shall offer this SDF
when converting into ringgit proceeds.
• Resident exporters can decide to place the
ringgit proceeds into SDF or to use for
other purposes.
49. What does this SDF provide? • The SDF will pay a daily rate of 3.25% p.a.
on end-of-day balances.
50. Is the rate similar from all banks? • All banks will offer the same rate of 3.25%
p.a. for the SDF.
51. How much of the converted proceeds
can be placed into this SDF?
• Resident exporters can make full or partial
placement of the proceeds arising from the
export conversion.
52. Can funds be withdrawn from the SDF? • Resident exporters are free to withdraw
funds from the SDF for other purposes,
except using the funds to place into other
banks’ SDF.
53. Can any other source of funds be
placed into this SDF?
• No. Placement of funds into SDF is
restricted to export conversion proceeds.
• Upon withdrawal, only remaining balance
will be paid at the daily rate of 3.25% p.a.
• Exporters will not be able to make future
placement into the SDF using previously
withdrawn fund from the SDF.
54. Can exporters convert the remaining
25% foreign currency export proceeds
into ringgit and place into the SDF?
• Yes. The ringgit proceeds are source from
exports and thus eligible to be placed into
the SDF.
Questions Answer
55. Can exporters choose to convert 100%
of incoming foreign currency export
proceeds and place into SDF?
56. For exports that are settled and
received in ringgit, can exporters
placed such proceeds into the SDF?
• Yes. Bank will need to ensure proper
documentation that the ringgit is from
export proceeds
57. Can an exporter request the export
conversion proceeds (which was
converted by Bank A) be placed into
another bank’s SDF?
58. Can exporter transfer funds from other
accounts into SDF e.g. current
account in Bank A into SDF Bank A or
into SDF Bank B?
• No. The SDF of Bank A can only receive
export proceeds that have been converted
by Bank A only. Bank A and Bank B shall
ensure that other type of funds (i.e. not
export related) are not allowed into the
SDF.
59. How long is SDF offered? • The offer shall last up to 1 year, until 31
Dec 2017.
Withdrawal of Special Deposit Facility (Effective 1 January 18 to 31 March 18)
60. What is the status of SDF after 31 Dec
2017?
• The SDF will be withdrawn after 31
December 2017.
• However, to facilitate SDF withdrawal in an
orderly manner and smooth operational
transition, any outstanding balances as at
31 December can continue to earn a rate of
return of 3.10% p.a. up to 31 March 2018.
61. What are the reasons for the SDF
withdrawal?
• Based on BNM’s assessment, the SDF has
served its purpose to facilitate export
proceed conversion and resident exporters
can now benefit from more competitive
rates offered by licensed banks for foreign
exchange and money market products.
• Given the above positive outcomes, it is
timely for the SDF to be withdrawn.
62. Can new export proceeds be placed
into the SDF after 31December 2017?
• No, new export proceeds converted into or
settled and received in ringgit are not
eligible for placement into the SDF after 31
December 2017.
Payment in foreign currency between residents
63. Can an exporter pay another resident in
foreign currency?
• Any settlement for goods and services
between residents shall only be made in
Questions Answer
ringgit, including where payment is made
by another party on behalf of the resident.
64. Can a resident invoice another resident
in foreign currency?
• There is no restriction for a resident to
invoice another resident in foreign currency
except the currency of Israel. However, all
settlements for goods and services
between residents shall only be made in
ringgit.
Investment in foreign currency assets
65. Are resident investors required to seek
Bank Negara Malaysia’s approval to
invest in foreign currency assets if the
current outstanding foreign currency
investment has exceeded the RM50
million limit?
• Yes, for applications to make further
investments in foreign currency asset from
5 December 2016.
66. Are short term placements of foreign
currency deposits considered as
investments in foreign currency
assets?
• Yes.
67. Is a resident without domestic ringgit
borrowing subject to the investment
limit?
• No. A resident without domestic ringgit
borrowing continues to be free to invest in
foreign currency assets onshore and
offshore.
68. How does a resident with domestic
ringgit borrowing computes total
investment limit?
• The investment limit is to be computed
based on the aggregate amount of
investments in foreign currency assets
onshore and offshore.
69. Where can residents place the
proceeds from the investment income?
• Investment income, including divestment
proceeds derived from foreign currency
assets can be credited into Investment
FCA.
• Funds from Investment FCA can be
transferred to Trade FCA to meet any
shortfalls in foreign currency requirements.
70. Can residents use income from
investment abroad for other investment
abroad activities?
• Residents may use the investment income
received from abroad for any purpose.
71. Is there any restriction on payment of
dividend to non-resident shareholders?
• No restriction.
72. Can a resident entity convert ringgit • A resident entity can convert ringgit for
Questions Answer
directly for investment in foreign
currency assets?
placement into investment FCA up to the
relevant investment limit for subsequent
investment in foreign currency assets.
21 December 2017
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency
Guidelines on
Quality of Currency and
Handling of Suspected
Counterfeit Currency
Applicable to:
Members of the public
Revised on: 22 December 2022
1 These Guidelines supersede the “Guidelines on Quality Standards for Malaysian Currency” issued by
Bank Negara Malaysia (BNM) on 1 September 2006.
2 These Guidelines set out the
(a) criteria in determining the quality and integrity of currency in circulation;
(b) procedures for members of the public to exchange unfit currency at financial institutions; and
(c) procedures for handling and reporting suspected counterfeit currency in circulation.
3 It is critical that the quality of Malaysian currency in circulation be maintained at a desired level. Hence,
unfit currency should be promptly identified and exchanged with new or fit currency.
4 Currency is considered fit for use or recirculation if it meets all the following criteria:
(a) genuine, not counterfeit;
(b) not defaced or unfit (for currency note);
(c) not tampered with or worn (for currency coin);
(d) has not been demonetised.
5
6
7
8
All counterfeit currencies are not legal tender as they are not issued by BNM. Thus, BNM will not give
any value for any counterfeit currency.
Counterfeit currency note can be recognised by closer examination by applying the “FEEL, LOOK,
TILT and CHECK” principles.
Members of the public who came into possession of suspected counterfeit currency is required to
report and surrender it to Polis Diraja Malaysia (PDRM) as soon as possible.
A person carrying counterfeit currency who fails or refuses to provide information as requested by
BNM, financial institutions or registered currency processors (RCPs) is committing an offence and,
on conviction, is liable to a fine not exceeding RM20,000.
Disclaimer: This summary is intended for ease of understanding by the public.
Please refer to the full Guidelines for complete information.
Enquiries and correspondence on these Guidelines shall be directed to:
Director
Currency Management and Operations Department
Bank Negara Malaysia
Jalan Dato’ Onn, 50480 Kuala Lumpur.
E-mail: currency@bnm.gov.my
Key Takeaways from the
Guidelines on Quality
of Currency and
Handling of Suspected
Counterfeit Currency
(The Guidelines)
._§
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TABLE OF CONTENTS
PART A OVERVIEW
Introduction 4
Applicability 4
Legal Provision 4
Effective Date 4
Interpretation 5
Related Legal Instrument 5
Guidelines Superseded 5
Enquiries and Correspondence 5
PART B QUALITY OF CURRENCY IN CIRCULATION
Introduction 8
Proper Handling of Currency 8
Fit Currency for Recirculation 11
Criteria of Defaced and Unfit Currency Note 11
Criteria of Tampered and Worn Currency Coin 12
Procedures for Exchange of Defaced, Tampered and Demonetised Currency
with Financial Institutions (FI) 13
Dye-Stained Currency Note 15
PART C HANDLING OF SUSPECTED COUNTERFEIT CURRENCY
Introduction 18
Handling of Suspected Counterfeit Currency 19
Detecting a Counterfeit Currency Note 20
Detecting a Counterfeit Currency Coin 25
Suspected Counterfeit Currency Certified as Genuine 25
Appendix 1: Illustrations of Defaced Currency Note and Unfit Currency Note 26
Appendix 2: Illustrations of Tampered Currency Coin and Worn Currency Coin 30
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency4
Bank Negara Malaysia
Part A
Overview
1. Introduction
1.1 Under the Currency Act 2020 (CA), Bank Negara Malaysia (BNM) is the sole authority
to issue Malaysian currency note and currency coin and only currency note and
currency coin issued by BNM are legal tender in Malaysia provided that it is not defaced
or tampered with.
1.2 As the sole issuer of Malaysian currency, BNM—
(a) is responsible for preserving the quality and integrity of the currency in circulation;
(b) is responsible for promoting the reissuance or recirculation of the currency; and
(c) has the discretion to refund the value of currency which is imperfect, defaced or has
been tampered with.
1.3 These Guidelines set out the—
(a) criteria in determining the quality and integrity of currency in circulation;
(b) procedures for members of the public to exchange unfit currency with financial
institutions; and
(c) procedures for handling and reporting suspected counterfeit currency.
2. Applicability
2.1 These Guidelines are applicable to members of the public.
3. Legal Provision
3.1 These Guidelines are issued pursuant to sections 5, 7, 10, 13, 14, 16, 17, 37, 38, 40 and 62
of the CA.
4. Effective Date
4.1 These Guidelines come into effect on 22 December 2022.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 5
Bank Negara Malaysia
5. Interpretation
5.1 The terms and expressions used in these Guidelines shall have the same meanings
assigned to them in the CA unless otherwise defined.
5.2 For the purpose of these Guidelines -
“carrier” means any member of the public who is in possession of a counterfeit
currency;
“counterfeit currency” means any forged or imitation of Malaysian currency note or
currency coin;
“currency coin” means a coin issued by BNM including a commemorative coin;
“currency note” means a note issued by BNM including a commemorative note;
“defaced currency note” refers to the description in paragraphs 12.2 and 12.3 of these
Guidelines;
“demonetised currency” means a currency note or currency coin which has ceased to
be legal tender pursuant to section 13 of the CA;
“financial institutions” or “FI” means—
(a) licensed banks under the Financial Services Act 2013;
(b) licensed Islamic banks under the Islamic Financial Services Act 2013; and
(c) prescribed institutions under the Development Financial Institutions Act 2002;
“fit currency” means a currency note or currency coin that meets the quality criteria
and standards to be kept in circulation;
“registered currency processor” means any person registered to carry on currency
processing business under subsection 26(1) of the CA;
“tampered currency coin” is as described in paragraphs 13.2 and 13.3 of these
Guidelines; and
“unfit currency” means any currency note or currency coin which is imperfect, defaced
or has been tampered with.
6. Related Legal Instrument
6.1 These Guidelines shall be read together with the “Guidelines on Exchange of Defaced
Currency Notes, Tampered Currency Coins and Demonetised Currency at Financial
Institutions” issued by BNM on 15 December 2020.
7. Guidelines Superseded
7.1 These Guidelines supersede the “Guidelines on Quality Standards for Malaysian
Currency” issued by BNM on 1 September 2006.
8. Enquiries and Correspondence
8.1 All enquiries and correspondences relating to these Guidelines shall be addressed to—
Director
Currency Management and Operations Department
Bank Negara Malaysia
Jalan Dato’ Onn, 50480 Kuala Lumpur.
Email: currency@bnm.gov.my
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency6
Bank Negara Malaysia
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 7
Bank Negara Malaysia
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency8
Bank Negara Malaysia
9. Introduction
9.1 It is critical that the quality of Malaysian currency in circulation must be maintained at a
desired level. As currency deteriorates over time during circulation by fair wear and tear
or otherwise, unfit currency should be promptly identified and exchanged with new or fit
currency.
9.2 Currency note and currency coin of good condition can be easily checked for
authenticity.
10. Proper Handling of Currency
10.1 In maintaining the quality of currency in circulation, members of the public is advised to
handle currency properly.
10.1.1 Proper handling of polymer note
The RM1 and RM5 polymer note are durable and not easily torn, it does not
absorb water, it is cleaner to handle and lasts longer. If the polymer note is handled
properly, it can be used over a long period of time. For that, the following need to be
observed–
Part B
Quality of Currency
in Circulation
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 9
Bank Negara Malaysia
Proper handling of polymer note Illustration
Do keep polymer note flat and store upright
position in one’s wallet.
Do clean polymer note if it is stained with dirt.
Do use paper bands when packing
polymer note.
Do not fold polymer note repeatedly (e.g. as
decoration) as it will leave permanent folding
marks.
Do not crumple polymer note.
Do not staple, use sharp instruments or pins
on polymer note.
Do not directly expose polymer note to high
temperatures.
Do not use scissors and knives to unpack the
polymer note.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency10
Bank Negara Malaysia
10.1.2 Proper handling of paper note
Paper note is made of cotton. The proper way of handling paper note is similar to
the treatment for polymer note, as follows –
Proper handling of
paper note Illustration
Do not fold paper note repeatedly (e.g. as
decoration) as it will leave permanent folding
marks.
Do not purposely crumple paper note.
Do not staple, use sharp instruments or pins
on paper note.
Do not put paper note in water or bleach.
Do not scrape the holographic stripe on paper
note.
Do not modify paper note.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 11
Bank Negara Malaysia
11. Fit Currency for Recirculation
11.1 Members of the public shall only use or recirculate currency note and currency coin that
are fit for circulation as stated in these Guidelines. The fitness check may be carried out
by visual inspection of the individual currency note or currency coin.
11.2 Members of the public are advised to exchange all unfit currencies with FIs.
11.3 Currency is considered fit for use or recirculation if it meets all the following criteria—
a) genuine, not counterfeit;
b) not a defaced or unfit currency note;
c) not tampered or worn currency coin; and
d) not a demonetised currency.
12. Criteria of Defaced and Unfit Currency Note
12.1 Any currency note which is defaced or unfit shall be withdrawn from circulation.
12.2 Currency note that has any of the following features shall be considered defaced—
(a) currency note that has any word, sign, symbol, drawing, caricature or other things
written, inscribed or shown on its surface;
(b) currency note which has been damaged or which appearance has changed, due to
contact with water, oil, paint, ink, chemical or other substance;
(c) currency note with a hole, which is torn or has a missing portion;
(d) currency note which is burnt, faded or crumpled, or with excessive folding; or
(e) currency note which is constituted by joining two or more portions of a single
currency note provided that all such portions may be established beyond all
reasonable doubt to have been originally part of a single currency note.
12.3. Examples of defaced currency notes are as follows—
(a) Ink wear
Ink wear on part or whole of the currency note. For example, if it has been washed or
is subjected to abrasive chemical agent.
(b) Inscribed
Currency note containing words, signs, symbols and drawing inscribed deliberately
on its surface.
(c) Tear
Tear of any size or direction of more than 5 mm on any part of the currency note.
(d) Hole
Currency note exhibiting at least one visible hole greater than 5 mm (staple and
pinholes are acceptable).
(e) Repair
Parts of the same currency note joined together by tape or glue.
(f) Burnt
Damage caused by burning of any size or direction of more than 5 mm.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency12
Bank Negara Malaysia
(g) Composed
Currency note divided into several parts and only some are joined together or parts
of different currency note are joined together.
(h) Missing security feature
Any one or more security feature missing or is defective.
(i) Shrinkage
Shrinkage of a polymer note due to excessive exposure to heat.
(j) Damage by termites
Currency note that was damaged by termites.
(k) Dye-stained
Currency note which are dye-stained due to—
(i) an accidental discharge; or
(ii) failed attempted robbery where the currency note was recovered in a controlled
manner by the cash handlers.
Details of dye-stained currency note are provided in paragraph 15 of these
Guidelines.
12.4 Examples of unfit currency notes are as follows:
(a) Soiled
General or localised spread of dirt or liquid on the surface of the currency note.
(b) Limpness
Excessive folding that results in a breakdown of the structure and limpness of the
currency note.
(c) Crumples
(i) Crumples of a paper currency note or shrinkage of a polymer note; and
(ii) Multiple random folds across the entire currency note that significantly affect
visual appearance of the currency note (including shrinkage of polymer note
due to exposure to heat).
(d) Corner folds
Permanent and irreparable corner folds leading to a reduction in length of more
than 5 mm or a reduction in width of more than 5 mm.
12.5 Illustrations of defaced and unfit currency note are provided in Appendix 1.
13. Criteria of Tampered and Worn Currency Coin
13.1 Any currency coin which is worn or tampered with shall be withdrawn from circulation.
13.2 A currency coin shall be deemed tampered with—
(a) if the currency coin is impaired, diminished or lightened otherwise than by fair wear
and tear; or
(b) if the currency coin is stamped, engraved or pierced, regardless whether the
currency coin has been diminished or lightened.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 13
Bank Negara Malaysia
13.3 Examples of tampered currency coins are as follows—
(a) Hole
Currency coin exhibiting at least one visible hole on any part of its surface.
(b) Dented
Currency coin damaged by hitting but not broken.
(c) Broken
Currency coin fractured into pieces.
(d) Cut
An opening of any length on the currency coin made by using a sharp tool, for
example, a knife or a pair of scissors.
(e) Burnt
Damage caused by burning which can result in discolouration and may alter the
appearance of the currency coin.
(f) Manufacturing defect
A markedly unusual or abnormal currency coin at the time of production.
13.4 Examples of worn currency coins are as follows:
(a) Corroded
Damaged by chemical agents on part of or the entire surface.
(b) Stained / Dirty
Change in colour of currency coin caused by wear and tear or dirt (e.g. a black
currency coin).
13.5 Illustrations of worn and tampered currency coins are provided in Appendix 2.
14. Procedures for Exchange of Defaced, Tampered and
Demonetised Currency with FI
14.1 Exchange of Defaced Currency Note
Members of the public may exchange defaced currency note with any FI in accordance
with the following procedures—
14.1.1 handover/exchange the defaced currency note to FI;
14.1.2 furnish relevant information required by FI for the purpose of exchange of
defaced currency note and provide consent for FI to submit defaced currency
note by filing up form available at FI;
14.1.3 request for proofs of exchange with FI;
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency14
Bank Negara Malaysia
14.1.4 where the defaced currency note fulfils all the following conditions (referred to
as “Straight Forward Case”), the FI shall exchange the full value of the defaced
currency note on the same day:
(i) the size of the defaced currency note is two third (2/3) or more of the original
size;
(ii) the defaced currency note does not contain any marking on the portrait of
the DYMM Seri Paduka Baginda Yang di-Pertuan Agong or writings depicting
political slogans; and
(iii) the currency note is not defaced due to being used as a writing pad; or
14.1.5 where the defaced currency note does not fulfil all conditions stated in
subparagraph (14.1.4) (referred to as “Doubtful Cases”), the FI shall refer the
matter to BNM for assessment and the value will be refunded into the customer’s
bank account after BNM has completed its assessment.
14.2 Exchange of Tampered Currency Coin
Members of the public may exchange tampered currency coin with any FI in
accordance with the following procedures—
14.2.1 handover/exchange the tampered currency coin to FI;
14.2.2 furnish relevant information required by FI for the purpose of exchange of
tampered currency coin and provide consent for FI to submit tampered coin by
filing up form available at FI;
14.2.3 request for proofs of exchange with FI;
14.2.4 the tampered currency coin needs to be sent to BNM for further assessment and
the value of such tampered currency coin will be refunded into the customer’s
bank account after BNM has completed its assessment.
14.3 Exchange of Demonetised Currency
14.3.1 BNM may publish a notice indicating its intention to demonetise currency note
or currency coin pursuant to section 13 of the CA. Upon expiry of the notice, any
currency that has been demonetised shall cease to be legal tender. However,
BNM shall be liable for the face value of such currency.
14.3.2 Members of the public may exchange demonetised currency with any FI in
accordance with the following procedures—
(a) handover/exchange the demonetised currency to FI;
(b) furnish relevant information required by FI for the purpose of exchange of
demonetised currency and provide consent for FI to submit demonetised
currency by filing up relevant form available at FI;
(c) request for proofs of exchange with FI;
(d) the demonetised currency needs to be sent to BNM for further assessment
and the value of such demonetised currency will be refunded into the
customer’s bank account after BNM has completed its assessment.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 15
Bank Negara Malaysia
15. Dye-Stained Currency Note
15.1 One measure that was introduced to strengthen security of Auto-teller Machine (ATM),
Cash Deposit Machine (CDM) and Cash Recycler Machine (CRM) was the use of
Currency Protection Device (CPD) using Ink Staining Technology (IST).
15.2 CPD will emit a bright coloured dye ink (using either smoke and/or liquid dye or any
other agent) to stain currency notes in the event the ATM/CDM/CRM are attacked.
15.3 Currency notes that have been stained with dye ink due to the activation of CPD can be
categorised as follows:
(a) Controlled dye-stained currency notes – currency notes which are dye-stained
due to an accidental discharge or during attempted robbery and recovered in a
controlled manner by the FIs and cash-in-transit company (CITs); and
(b) Uncontrolled dye-stained currency notes – dye-stained currency notes which are
carted away by robbers and passed into circulation and into the hands of members
of the public.
15.4 BNM will not give any value for “uncontrolled dye-stained currency notes” including
those which have been discoloured, washed, or burnt in an attempt to remove the dye-
stain.
15.5 Members of the public must not accept dye-stained currency notes as the currency
notes are likely to have been stolen. Members of the public should report any
information regarding stolen currency notes immediately to the police.
15.6 In the event any “uncontrolled dye-stained currency notes” are presented to the FIs by
members of the public as deposits or payments, the FIs shall not accept the currency
notes and member of public shall refer to BNM Head Office or the nearest BNM Offices
such “uncontrolled dye-stained currency notes” for assessment.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency16
Bank Negara Malaysia
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 17
Bank Negara Malaysia
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency18
Bank Negara Malaysia
Part C
Handling of Suspected
Counterfeit Currency
16. Introduction
16.1. All counterfeit currency are not legal tender as they are not issued by BNM. Thus, BNM
will not give any value for any counterfeit currency.
16.2. Members of the public shall not keep in his possession, use or recirculate via any person
or by any means, any suspected counterfeit currency discovered from circulation.
16.3. Any person knowingly uses counterfeit currency as genuine or possess it with intention
to use it as genuine, commits an offence under the Penal Code.
16.4. Under section 37 of the CA, BNM, a registered currency processor and any FI shall
detain any currency note or currency coin presented which it has reason to believe to
be counterfeit.
16.5. BNM, the registered currency processor and FI has the right to record the personal
information of the carrier of counterfeit currency pursuant to section 38(1) of the CA and
the carrier shall provide the information requested.
16.6. Any person who fails or refuses to provide the information commits an offence and
on conviction, is liable to a fine not exceeding twenty thousand ringgit (RM20,000).
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 19
Bank Negara Malaysia
17. Handling of Suspected Counterfeit Currency
17.1. Members of the public who came into possession of suspected counterfeit currency is
required to report and surrender it to Polis Diraja Malaysia (PDRM) as soon as possible
as it is a criminal matter.
17.2. In handling and reporting suspected counterfeit currency, members of the public are
required to adhere to the following steps:
(a) where the suspected counterfeit currency is discovered during over the counter
transactions with FI, members of the public are required to—
i. handle the suspected counterfeit currency as little as possible and do not stamp,
write on, cut or alter the suspected counterfeit currency in any manner;
ii. surrender the suspected counterfeit currency to the FI’s cashiers. The suspected
counterfeit currency will be kept in a sealed envelope by FI for onward submission
to PDRM;
iii. fill up the Handover of Suspected Counterfeit Currency Note Form provided by FI;
iv. provide a photocopy of identity card (NRIC), passport or any other identification
document to FI for record purpose; and
v. keep a copy of the form as proof that the suspected counterfeit Malaysian
currency has been surrendered to FI for onward submission to PDRM.
(b) where the suspected counterfeit currency is discovered by members of the public
from circulation, members of the public are required to—
i. handle the suspected counterfeit currency as little as possible and do not stamp,
write on or modify the suspected counterfeit currency in any manner;
ii. not use or recirculate the suspected counterfeit currency;
iii. keep the suspected counterfeit currency in an envelope or plastic cover;
iv. record any details available related to the discovery of the suspected counterfeit
Malaysian currency including the carrier’s personal details (name, NRIC, address
and phone number), location, date, time, and any other information available; and
v. lodge a police report at the nearest police station and surrender the suspected
counterfeit currency to PDRM as soon as possible.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency20
Bank Negara Malaysia
18. Detecting a Counterfeit Currency Note
18.1. Counterfeit currency note (paper currency) can be recognised by closer examination
by applying the “FEEL, LOOK, TILT and CHECK” principles as follows:
(a) “Feel” Principle:
Security Features Genuine Counterfeit
Feel the quality of paper
Currency note is printed on very
high quality paper manufac-
tured from cotton.
It has a unique feel, crisp sound
and slightly rough in the heavily
printed areas.
The paper used appears to be
of poor quality, and common
commercial type of paper.
No unique feel or crisp sound
as it is produced using normal
paper.
Feel the intaglio printing
Portrait of the first SPB Yang
di-Pertuan Agong
Intaglio text printing
Braille printing
Intaglio print is a raised printing
effect produced by applying
layers of tactile inks using
specialised printing machine on
various parts of the obverse and
reverse sides of the currency
note.
Does not have the raised
printing effect since the printer
used to produce is a common
commercial type of printer.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 21
Bank Negara Malaysia
Security Features Genuine Counterfeit
Hold it up against the light and
look at the currency note
Watermark portrait
Security thread embedded in the
paper and hibiscus flower
Perfect see through features
Carry a watermark portrait of
DYMM Seri Paduka Baginda
Yang di-Pertuan Agong, security
thread (embedded into paper),
and perfect see-through
features.
The watermark portrait has
three-dimensional effect and
appears soft and shady without
sharp outlines. At the bottom
of the portrait, a denomination
number is clearly visible.
Security thread that is
intermittent will appear as a
continuous straight line.
See-through features, printed
partially on both sides of the
currency notes will form a
perfectly registered pattern.
Does not carry the security
features that are normally
embedded into the paper during
paper making process.
The watermark is not visible. If
any, it will appear like a drawing.
Security thread will not appear
as a continuous straight line
because it is simulated and
rather blurry, and can be easily
scrapped off.
See-through features does not
form a perfectly registered pat-
tern on the counterfeit note.
Security Features Genuine Counterfeit
Security thread
Security thread
Security thread with movable
hibiscus flower motif that is
sharp and clear.
Security thread is simulated,
the hibiscus flower motif is
stationary and blurry.
Iridescent stripe
RM100 revealed in iridescent
stripe
When changing the angle of
view by shifting the currency
note, a hidden image of
denomination number will be
revealed.
There is no latent image
of denomination or some
simulation of image has been
attempted.
(b) “Look” Principle:
(c) “Tilt” Principle:
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency22
Bank Negara Malaysia
(d) “Check” Principle:
Security Features Genuine Counterfeit
Look under magnifying glass
Micro lettering for RM100
Presence of micro lettering on
the obverse and reverse sides
of all currency note, printed
using specialised printing
machine.
The micro lettering on a genuine
currency note is sharp and easy
to read.
Absence of micro lettering
as a result of using common
commercial type of printer.
This feature is normally
simulated using dots and the
text is not readable.
Look using ultra-violet (UV) light
Fluorescent elements
Phosphorescence square
Security fibres
Fluorescent elements,
phosphorescence square and
security fibres (for RM10, RM20,
RM50 and RM100) on the
obverse and reverse sides will
glow in different colours.
Under UV light, the
invisible security fibres and
phosphorescence square are
completely missing.
The paper of the counterfeit is
UV bright, where it glows under
UV lights.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 23
Bank Negara Malaysia
18.2. Counterfeit currency note (polymer currency) can be recognised by closer examination
of the “FEEL, LOOK, TILT and CHECK” principles as follows:
(a) “Feel” Principle:
Security Features Genuine Counterfeit
Feel the quality of polymer notes
Polymer note is printed on
a very high quality polymer
substrate.
Materials used are mostly
common commercial type
of paper and not polymer
substrate.
Feel the intaglio printing
Portrait of the first SPB Yang
di-Pertuan Agong
Intaglio print is a raised printing
effect produced by applying
layers of tactile inks on various
parts of the obverse and
reverse sides of the note.
Does not have the raised
printing effect since the printer
used to produce is common
commercial type of printer.
Security Features Genuine Counterfeit
Hold it up against the light and
look at the currency note
Clear window
Shadow image
Non-transparent window
Perfect see-through register
Look at the currency note
against white light and observe:
a. the transparent window
containing embossed
numeral ‘5’ for RM5 and
numeral ‘1’ for RM1;
b. complete shadow image of
hornbill motif for RM5 and
‘Songket’ motif for RM1;
c. crescent and star printed in
white from the back; and
d. complete formation of
numeral ‘5’ for RM5 and
numeral ‘1’ for RM1.
The shadow image and numeral
‘1’ and ‘5’ is not visible. If any, it
can appear like a drawing.
See-through features does
not perfectly register with the
pattern on the reverse side of
the counterfeit note.
(b) “Look” Principle:
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency24
Bank Negara Malaysia
(c) “Tilt” Principle:
(d) “Check” Principle:
Security Features Genuine Counterfeit
Colour-shifting patch
Colour-shifting patch ‘Sulur
Kacang’ motif changes from
green to purple.
The patch is simulated and
rather blur.
Security Features Genuine Counterfeit
Look under magnifying glass
Micro lettering for RM5
Presence of micro lettering on
the obverse and reverse sides
of all currency note, printed
using specialised printing
machine.
The micro lettering on a genuine
currency note is sharp and easy
to read.
Absence of micro lettering
as a result of using common
commercial type of printer. This
feature is normally simulated
using dots and the text is not
readable.
Micro lettering of the words
“BNMRM5” for RM5 and other
denomination as well i.e. RM1
on the counterfeit note are not
present, only dots are printed to
simulate this feature.
Look using ultra-violet (UV) light
Fluorescent elements
Phosphorescence square
Invisible fluorescent elements
representing various elements
of the background on the
obverse and reverse will glow
in different colours i.e. image
hornbill and numeral ‘BNM5’ for
RM5 and image of ‘Wau Bulan’
and numeral ‘BNM1’ for RM1.
Under UV light the invisible
phosphorescence square
is completely missing in the
counterfeit note.
The paper of the counterfeit is
UV bright, meaning that it glows
under UV lights.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 25
Bank Negara Malaysia
19. Detecting a Counterfeit Currency Coin
19.1. Counterfeit currency coin can be recognised by closer examination as follows:
Security Features Genuine Currency Coin
Numeral of ‘50’ and ‘sen’ Latent image of the numeral ’50’ and the word ’SEN’
can be seen when the currency coin is tilted.
Micro-lines Embossed effect of very fine lines arranged closed
to each other in parallel.
Edge design Indented and milled edges are evenly spaced.
Dots lines Straight line formed by close arrangement of small
dots.
Rimmed edge Different rimmed edge design of every
denomination is visible with closer look.
50 sen (plain edge)
20 sen (coarse edge)
10 Sen (milled edge)
5 sen (plain)
20. Suspected Counterfeit Currency Certified as Genuine
20.1. Suspected counterfeit currency which are certified as genuine after investigation will
be returned to the reporting FI by PDRM. Respective FIs shall immediately notify and
return the genuine currency to the person from whom the currency was detained.
20.2. Pursuant to section 40(2) of the CA, no person shall be entitled to recover any
compensation for any loss suffered due to the detention of currency note or currency
coin which is suspected to be counterfeit.
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency26
Bank Negara Malaysia
Appendix 1
Illustrations of Defaced Currency Note:
Item Illustration Features
a Inscribed
b Inkwear
c Tear
d Holes
e Repairs
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 27
Bank Negara Malaysia
Item Illustration Features
f Burnt
g Composed
h
Missing security
features
i Shrinkage
j
Damage by
termites
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency28
Bank Negara Malaysia
Item Illustration Features
k Dye-stained
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 29
Bank Negara Malaysia
Item Illustration Features
a Soiling
b Limpness
c Crumples
d Corner folds
Illustrations of Unfit Currency Note:
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency30
Bank Negara Malaysia
Item Illustration Features
a Hole(s)
b Dented
c Broken
d Cut
Appendix 2
Illustrations of Tampered Currency Coin:
Guidelines on Quality of Currency and Handling of Suspected Counterfeit Currency 31
Bank Negara Malaysia
Item Illustration Features
e Burnt
f
Manufacturing
defect
Item Illustration Features
a Corroded
b Stained/dirty
Illustrations of Worn Currency Coin:
| Press Release |
15 Dec 2020 | Establishment of RM1 billion High Tech Facility – National Investment Aspirations (HTF-NIA) | https://www.bnm.gov.my/-/establishment-of-rm1-billion-high-tech-facility-national-investment-aspirations-htf-nia-1 | https://www.bnm.gov.my/documents/20124/883228/HTF_NIA_+Appendix2.pdf, https://www.bnm.gov.my/documents/20124/883228/151220_HTF_+Appendix1.pdf | null |
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Establishment of RM1 billion High Tech Facility – National Investment Aspirations (HTF-NIA)
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29
Establishment of RM1 billion High Tech Facility – National Investment Aspirations (HTF-NIA)
Embargo :
For immediate release
Not for publication or broadcast before
2343 on
Tuesday, 15 December 2020
15 Dec 2020
As announced in the Budget 2021 speech by the Minister of Finance, Bank Negara Malaysia (BNM) is establishing a RM1 billion High Tech Facility – National Investment Aspirations (HTF-NIA), as part of efforts to provide additional assistance for SMEs affected by COVID-19. The facility is aimed at supporting high-tech and innovation-driven SMEs affected by COVID-19 to recover and revitalise the nation’s innovation capacity. This is critical to strengthen Malaysia’s competitive positioning in global value chains, preserve the supply chain ecosystem and safeguard high-skilled jobs.
Eligible SMEs include:
Those in advanced manufacturing and services sectors that are best aligned to deliver the overarching national strategic long-term development goals, as embedded in the NIAs[1]. Examples include businesses in the E&E, aerospace, pharmaceuticals and ICT sectors, as well as R&D driven firms supporting the development of emerging technologies;
or
SME project participants in key Government programmes involved in research, development and innovation for critical technologies identified under national blueprints, from IR4.0-related technologies[2], green technology and biotechnology, to ensure their continuity and completion of those existing projects.
The features of the facility are detailed in Appendix 1.
Eligible SMEs can obtain financing of up to RM1 million for working capital purposes; up to RM5 million to finance capital expenditure; or a combination of working capital and capital expenditure up to RM5 million, for a tenure of up to 7 years.
This facility is offered at a financing rate of up to 3.5% per annum for financing without guarantee or up to 5% per annum inclusive of guarantee fee (with guarantee coverage by Credit Guarantee Corporation Malaysia Berhad (CGC).
The facility will be available from 15 December 2020 to 31 December 2021 or until it is fully utilised (whichever is earlier).
Interested SMEs can apply directly to participating financial institutions, which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM through their websites or by visiting their branches. Further details on the features and list of participating financial institutions for HTF-NIA are outlined in Appendix 1 and Appendix 2.
SMEs in other sectors can access the various facilities available under BNM’s Fund for SMEs. Details on these funds are available at www.bnm.gov.my/covid19/.
[1] The National Investment Aspirations (NIAs) refer to overarching strategic developmental objectives to increase economic complexity, create high-value jobs, extend domestic industry linkages and develop new and existing clusters. Further details on the NIAs can be obtained in “Securing Future Growth through Quality Investments” in the BNM Economic & Monetary Review 2019 publication (pages 41 - 42) at www.bnm.gov.my/ar2019/files/emr2019_en_box1.pdf.
[2] These technologies range from blockchain, AI, big data analytics, internet of things (IoT), additive manufacturing (3D/4D/5D/6D printing), cybersecurity, system integrators, augmented reality, advanced materials, drones and manufacturing systems, as well as bioscience technology and neurotechnology.
Bank Negara Malaysia
15 December 2020
© Bank Negara Malaysia, 2020. All rights reserved.
|
Monthly Highlights
Net financing growth continued to support economic activity
December 2018
1
• Net financing2 recorded annual growth of 6.3%
in December (November: 7.3%). This was due
mainly to a moderation in the growth of
outstanding corporate bonds to 8.0%
(November: 10.5%), reflecting the high base
effect in December 2017.
• Outstanding business loan growth moderated
to 5.4% in December (November: 6.3%),
mainly driven by the construction and real
estate sectors.
• Growth in household loans was sustained at
5.6% (November: 5.7%).
Higher wholesale and retail trade growth in November
• The Index of Wholesale and Retail Trade
(IOWRT) recorded a higher growth of 8.4% in
November (October: 8.0%) due to continued
improvement in the retail segment, as
consumers maintained spending despite the
reintroduction of SST on 1 September.
• Growth in the wholesale and motor vehicles
segments moderated during the month.
Inflation remained low and stable in December
• Headline inflation remained low at 0.2% in
December (November: 0.2%), mainly reflecting
the negative contribution from transport
inflation due to the base effect.
– Food and non-alcoholic beverages inflation
also declined during the month (December:
0.7%; November: 1.1%) .
• For 2018 as a whole, headline inflation
averaged 1.0% (2017: 3.7%).
• Excluding the impact of changes in
consumption tax policy, core inflation remained
broadly stable at 1.6% (November: 1.6%).
1Core inflation is computed by excluding price-volatile and price-administered items.
It also excludes the estimated direct impact of tax policy changes.
Source: Department of Statistics, Malaysia and staff estimates
Contribution to Inflation
ppt contribution %, yoy
0.2
1.6
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
N
ov
-1
7
D
ec
-1
7
Ja
n-
18
Fe
b-
18
M
ar
-1
8
Ap
r-1
8
M
ay
-1
8
Ju
n-
18
Ju
l-1
8
Au
g-
18
Se
p-
18
O
ct
-1
8
N
ov
-1
8
D
ec
-1
8
Others (32.1%) Housing & utilities (23.8%)
Transport (14.6%) Food & non-alcohol (29.5%)
Headline inflation (RHS) Core Inflation (RHS)
Contribution to overall IOWRT
Source: Department of Statistics, Malaysia
8.0 8.4
-2
0
2
4
6
8
10
12
N
ov
-1
7
D
ec
-1
7
Ja
n-
18
Fe
b-
18
M
ar
-1
8
Ap
r-1
8
M
ay
-1
8
Ju
n-
18
Ju
l-1
8
Au
g-
18
Se
p-
18
O
ct
-1
8
N
ov
-1
8
Retail Wholesale Motor vehiclesppt, yoy
5.6
8.0
6.3
0
2
4
6
8
10
12
14
16
18
D
ec
-1
7
Ja
n-
18
Fe
b-
18
M
ar
-1
8
Ap
r-1
8
M
ay
-1
8
Ju
n-
18
Ju
l-1
8
Au
g-
18
Se
p-
18
O
ct
-1
8
N
ov
-1
8
D
ec
-1
8
Banking System Loans
Corporate Bonds
Net Financing
2Net financing refers to outstanding loans of the banking system (excluding
development financial institutions (DFIs)), and outstanding corporate bonds.
Source: Bank Negara Malaysia
Net Financing through Banking System Loans and
Corporate Bonds
%, yoy
1
Monthly Highlights
December 2018
2
Financial Markets Performance in December
Source: Bank Negara Malaysia, Bursa Malaysia
Domestic financial markets improved on better regional sentiments
• Domestic financial markets recovered during
the month amid a weakening US dollar and
external developments that supported investor
sentiments on regional financial markets.
– The ringgit appreciated by 1.2% against the
US dollar, driven mainly by market
expectations for a slower pace of monetary
policy normalisation in the US. Investor
sentiments were also supported by the
easing concerns surrounding global trade
disputes.
– The FBM KLCI increased by 0.6% as
investors rebalanced their portfolio
investments into regional assets amid
uncertainties over the US political and
economic outlook following the US
government shutdown and the downward
revision in growth forecast by the US
Federal Reserve.
– The 5-year MGS yield declined by 9.5 basis
points despite non-resident outflows in the
MGS market, following the active buying by
domestic institutional investors that
increased their MGS holdings by RM2.7
billion during the month.
-1.7
7.3
-0.1
0.6
-9.5
1.2
Equity
(% change)
5-year MGS
(bps)
Ringgit
(% change)
-12 -6 0 6 12
Dec-18 Nov-18
Banking system capitalisation remained strong
13.0 13.1
13.7 13.9
17.2 17.4
8
9
10
11
12
13
14
15
16
17
18
Ap
r 1
6
Ju
n
16
Au
g
16
O
ct
1
6
D
ec
1
6
Fe
b
17
Ap
r 1
7
Ju
n
17
Au
g
17
O
ct
1
7
D
ec
1
7
Fe
b
18
Ap
r 1
8
Ju
n
18
Au
g
18
O
ct
1
8
D
ec
1
8
Common Equity Tier 1 Capital Ratio
Tier 1 Capital Ratio
Total Capital Ratio
%%
Jul 17
83.5%
Capital Adequacy Ratios • Financial institutions are well-positioned to
withstand severe macroeconomic and financial
shocks, with excess capital buffers3 of RM143
billion as at December 2018.
• The slight increase in capital adequacy ratios
were partly attributable to an increase in
ordinary shares arising from a dividend
reinvestment scheme.
3 Refers to capital in excess of the minimum total capital requirement of 8%
of risk-weighted assets.
SIARAN AKHBAR
Ref. No.: 01/19/08 EMBARGO: Not for publication or
broadcast before 1500 hours on
Thursday, 31 January 2019
MONTHLY HIGHLIGHTS – DECEMBER 2018
Inflation remained low and stable in December
• Headline inflation remained low at 0.2% in December (November: 0.2%), mainly
reflecting the negative contribution from transport inflation due to the base effect.
• Food and non-alcoholic beverages inflation also declined during the month
(December: 0.7%; November: 1.1%).
• For 2018 as a whole, headline inflation averaged 1.0% (2017: 3.7%).
• Excluding the impact of changes in consumption tax policy, core inflation1
remained broadly stable at 1.6% (November: 1.6%).
Higher wholesale and retail trade growth in November
• The Index of Wholesale and Retail Trade (IOWRT) recorded a higher growth of
8.4% in November (October: 8.0%) due to continued improvement in the retail
segment, as consumers maintained spending despite the reintroduction of SST
on 1 September.
• Growth in the wholesale and motor vehicles segments moderated during the
month.
Net financing growth continued to support economic activity
• Net financing2 recorded annual growth of 6.3% in December (November: 7.3%).
This was due mainly to a moderation in the growth of outstanding corporate
bonds to 8.0% (November: 10.5%), reflecting the high base effect in December
2017.
1 Core inflation is computed by excluding price-volatile and price-administered items. It also
excludes the estimated direct impact of tax policy changes.
2 Net financing refers to outstanding loans of the banking system (excluding development
financial institutions (DFIs)), and outstanding corporate bonds.
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
• Outstanding business loan growth moderated to 5.4% in December (November:
6.3%), mainly driven by the construction and real estate sectors.
• Growth in household loans was sustained at 5.6% (November: 5.7%).
Domestic financial markets improved on better regional sentiments
• Domestic financial markets recovered during the month amid a weakening US
dollar and external developments that supported investor sentiments on regional
financial markets.
– The ringgit appreciated by 1.2% against the US dollar, driven mainly by
market expectations for a slower pace of monetary policy normalisation in
the US. Investor sentiments were also supported by the easing concerns
surrounding global trade disputes.
– The FBM KLCI increased by 0.6% as investors rebalanced their portfolio
investments into regional assets amid uncertainties over the US political
and economic outlook following the US government shutdown and the
downward revision in growth forecast by the US Federal Reserve.
– The 5-year MGS yield declined by 9.5 basis points despite non-resident
outflows in the MGS market, following the active buying by domestic
institutional investors that increased their MGS holdings by RM2.7 billion
during the month.
Banking system capitalisation remained strong
• Financial institutions are well-positioned to withstand severe macroeconomic and
financial shocks, with excess capital buffers3 of RM143 billion as at December
2018.
• The slight increase in capital adequacy ratios were partly attributable to an
increase in ordinary shares arising from a dividend reinvestment scheme.
Bank Negara Malaysia
31 January 2018
3 Refers to capital in excess of the minimum total capital requirement of 8% of risk-weighted
assets.
i_en
Slide Number 1
Slide Number 2
310119 Monthly Highlights December 2018 - EN
MONTHLY HIGHLIGHTS – DECEMBER 2018
Features of BNM’s High Tech Facility – National Investment Aspirations (HTF-NIA)
Features Details
Allocation RM1 billion
Objective
Support affected high tech and innovation-driven SMEs that are best aligned
to strategic long-term development goals embedded in the National
Investment Aspirations (NIAs)*. This is critical to strengthen Malaysia’s
competitive positioning in the global value chains, preserve the supply chain
ecosystem and safeguard high-skilled jobs.
Eligibility
Viable Malaysian SMEs** in the following subsectors:
Within manufacturing and services subsectors with high National Investment
Aspirations (NIAs) scores:
i. Electrical and Electronics (E&E);
ii. Chemicals (including pharmaceuticals and refined petroleum);
iii. Optical Scientific Equipment and Medical Equipment;
iv. Machinery & Equipment (including Robotics, Drones, and
Industry 4.0 technologies);
v. Transport equipment covering aerospace; vehicle and parts;
manufacturers involved in global supply chains or transitioning
towards future mobility and green technology;
vi. Information and Communication Technology (ICT); and
vii. Research and Development (R&D) services.
OR
SMEs involved in existing innovation programmes by the Government for a
range of critical technologies, from undertaking R&D, technology co-creation
to technology licensing for development purposes. This would also include late
stage tech-start-ups*** under Government programmes that are developing
critical technologies and ready to graduate to bank-based financing.
As a start, the following list of programmes have been identified:
MDEC’s Global Acceleration and Innovation Network (GAIN);
MOSTI’s National Technology and Innovation Sandbox (NTIS) and
Research and Development Fund; and
MARii’s technology partners involved in the design and development
of solutions related to IR4.0 technologies.
All eligible programmes will be updated periodically at:
www.bnm.gov.my/covid19
Appendix 1
* The National Investment Aspirations (NIAs) refer to overarching strategic developmental objectives to increase economic
complexity, create high-value jobs, extend domestic industry linkages and develop new and existing clusters.
** Based on the definition of SME as approved by the National Entrepreneur and SME Development Council (NESDC) with at least
51% shareholding held by Malaysians.
*** These firms have established revenue streams and commercialised products with ready paying customers.
Features Details
Note: Recipients of Special Relief Facility (SRF), PENJANA SME
Financing (PSF) and/or PENJANA Tourism Financing (PTF) are eligible
for the HTF-NIA, for the purpose of financing capital expenditure only.
Purpose • Capital expenditures (CAPEX); and/or
• Working capital
Financing rate
• Up to 3.50% p.a. for financing without guarantee; or
• Up to 5.00% p.a. inclusive of any guarantee fee
Maximum
financing amount
• RM1 million per SME for working capital; or
• RM5 million per SME for CAPEX or a combination of working capital and
CAPEX
Maximum tenure 7 years
Availability 15 December 2020 until 31 Dec 2021 or full utilisation (whichever is earlier)
| Press Release |
07 Dec 2020 | International Reserves of Bank Negara Malaysia as at 30 November 2020 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-30-november-2020 | null | null |
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International Reserves of Bank Negara Malaysia as at 30 November 2020
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International Reserves of Bank Negara Malaysia as at 30 November 2020
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1500 on
Monday, 7 December 2020
7 Dec 2020
The international reserves of Bank Negara Malaysia amounted to USD105.3 billion as at 30 November 2020. The reserves position is sufficient to finance 8.6 months of retained imports and is 1.2 times total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities - 30 November 2020
Bank Negara Malaysia
7 December 2020
© Bank Negara Malaysia, 2020. All rights reserved.
| null | Press Release |
01 Dec 2020 | New and enhanced financing facilities for SMEs affected by COVID-19 | https://www.bnm.gov.my/-/new-and-enhanced-financing-facilities-for-smes-affected-by-covid-19 | https://www.bnm.gov.my/documents/20124/883228/Appendix.pdf | null |
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New and enhanced financing facilities for SMEs affected by COVID-19
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New and enhanced financing facilities for SMEs affected by COVID-19
Embargo :
For immediate release
Not for publication or broadcast before
2141 on
Tuesday, 1 December 2020
1 Dec 2020
Bank Negara Malaysia (BNM) wishes to provide further information on the implementation of two funds, as announced in the Budget 2021 speech by the Minister of Finance.
Targeted Relief and Recovery Facility (TRRF)
The RM2 billion facility is aimed at assisting eligible SMEs in the services sector. Eligible SMEs can obtain financing for working capital purposes of up to RM500,000 for a tenure of up to 7 years, including a repayment moratorium of at least 6 months. The facility is offered at a rate of up to 3.5% per annum and is available through 21 participating financial institutions (PFIs), with guarantee coverage by Credit Guarantee Corporation (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP). The facility is now available until 31 December 2021 or full utilisation (whichever is earlier).
SMEs that are recipients of the Special Relief Facility (SRF), PENJANA Tourism Financing (PTF) and PENJANA SME Financing (PSF) are not eligible to apply for TRRF. For SMEs in the tourism and tourism-related services subsectors, assistance remains available under the existing PTF.
Micro Enterprises Facility (MEF)
The total size of the facility has been increased from RM300 million to RM410 million, with an available balance of RM200 million. The MEF has been enhanced to improve access to credit for micro enterprises, to include self-employed individuals, gig workers on digital platforms and participants of the iTEKAD[1] programme. Eligible micro enterprises can obtain financing for working capital and capital expenditure purposes of up to RM50,000. The financing rate will be determined by the PFIs. PFIs can also seek guarantee coverage from CGC or SJPP for this facility.
Interested SMEs can apply directly to the PFIs for the TRRF, which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM via their websites or by visiting the PFIs’ branches. For the MEF, interested micro enterprises can apply directly to the PFIs under the Skim Pembiayaan Mikro.
Details of the High Tech Facility (HTF) will be announced on 15 December 2020.
Members of the public can contact BNMTELELINK for further information and advice on issues that they might face with their banks in this challenging time at bnmtelelink@bnm.gov.my or 1-300-88-5465.
Further details on the features of the above-mentioned facilities are outlined in Appendix 1, 2 & 3 and also available online at www.bnm.gov.my/covid19/.
[1] iTEKAD, launched in May 2020, is a social finance programme that provides (i) structured training and mentorship on entrepreneurship and financial management; (ii) funding for purchase of assets (from zakat, cash waqf and donation); and/or (iii) microfinancing. The programme seeks to support micro entrepreneurs from the B40 segment to generate more sustainable income and contribute back to the community.
Bank Negara Malaysia
1 December 2020
© Bank Negara Malaysia, 2020. All rights reserved.
|
Features of BNM’s New and Enhanced Financing Facilities to Assist Malaysian SMEs
Targeted Relief and Recovery Facility (TRRF) Micro Enterprises Facility (MEF)
Allocation RM2 billion RM410 million
Objective
Provide relief and support recovery for SMEs in
the services sector affected by reintroduction of
containment measures since June 2020
Increase access to collateral-free micro
financing for micro enterprises
Eligibility
Malaysian SMEs* in services sector affected by
reintroduction of COVID-19 containment
measures since June 2020, except for tourism
and tourism-related subsectors
Malaysian micro enterprises** or Malaysian
micro entrepreneurs including self-employed
individuals, gig workers on digital platforms
and participants of the iTEKAD programme
Purpose Working capital
• Capital expenditures; or/and
• Working capital
Financing rate Up to 3.50% p.a. (inclusive of any guarantee fee) To be determined by participating financial
institutions (PFIs)
Maximum financing
amount
• RM500,000 per SME
• RM75,000 per micro enterprise
RM50,000 per micro enterprise or micro
entrepreneur, per PFI
Maximum tenure 7 years, including at least 6 months moratorium
on monthly instalments 5 years
Availability Until 31 December 2021 or full utilisation
(whichever is earlier) From 1 December 2020 onwards
*Based on the definition of SME as approved by the National
Entrepreneur and SME Development Council (NESDC).
**Malaysians residing in Malaysia who hold a minimum of
51% shareholding in the micro enterprise.
Appendix 1
Participating Financial Institutions for Targeted Relief and Recovery Facility (TRRF)
1. Affin Bank Berhad / Affin Islamic Bank Berhad
2. Alliance Bank Malaysia Berhad / Alliance Islamic Bank Berhad
3. AmBank (M) Berhad / AmBank Islamic Berhad
4. Bangkok Bank Berhad
5. Bank Islam Malaysia Berhad
6. Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat)
7. Bank Muamalat Malaysia Berhad
8. Bank of China (Malaysia) Berhad
9. Bank Pertanian Malaysia Berhad (Agrobank)
10. Bank Simpanan Nasional
11. CIMB Bank Berhad / CIMB Islamic Bank Berhad
12. HSBC Bank Malaysia Berhad / HSBC Amanah Malaysia Berhad
13. Hong Leong Bank Berhad / Hong Leong Islamic Bank Berhad
14. Malayan Banking Berhad / Maybank Islamic Berhad
15. MBSB Bank Berhad
16. OCBC Bank (Malaysia) Berhad / OCBC Al-Amin Bank Berhad
17. Public Bank Berhad / Public Islamic Bank Berhad
18. RHB Bank Berhad / RHB Islamic Bank Berhad
19. Small Medium Enterprise Development Bank Berhad (SME Bank)
20. Standard Chartered Bank Malaysia Berhad
21. United Overseas Bank (Malaysia) Berhad
Appendix 2
Participating Financial Institutions for Micro Enterprises Facility (MEF)
1. AmBank (M) Berhad
2. Alliance Bank Malaysia Berhad
3. Bank Islam Malaysia Berhad
4. Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat)
5. Bank Muamalat Malaysia Berhad
6. Bank Pertanian Malaysia Berhad (Agrobank)
7. Bank Simpanan Nasional
8. CIMB Bank Berhad
9. Malayan Banking Berhad
10. Public Bank Berhad
11. United Overseas Bank (Malaysia) Berhad
Appendix 3
| Press Release |
30 Nov 2020 | Monetary and Financial Developments in October 2020 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-september-20-1 | https://www.bnm.gov.my/documents/20124/1643113/i_en.pdf | null |
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Monetary and Financial Developments in October 2020
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Monetary and Financial Developments in October 2020
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Monthly Highlights and Statistics in October 2020
Bank Negara Malaysia
30 November 2020
© Bank Negara Malaysia, 2020. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
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3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
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2
2
J
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2
J
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3
F
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3
M
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2
3
A
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2
3
M
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2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
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A
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M
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2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
30 Nov 2020 | Detailed Disclosure of International Reserves as at end-October 2020 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-september-20-3 | null | null |
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Detailed Disclosure of International Reserves as at end-October 2020
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Detailed Disclosure of International Reserves as at end-October 2020
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1200 on
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30 Nov 2020
In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD104,593 million, while other foreign currency assets amounted to USD1,543.5 million as at end-October 2020. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and the maturity of foreign currency Bank Negara Interbank Bills, amounted to USD9,007.9 million. The short forward positions amounted to USD6,942.2 million while long forward positions amounted to USD1,510 million as at end-October 2020, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans. Projected foreign currency inflows amount to USD2,440.9 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD327.6 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-October 2020, Malaysia’s international reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
30 November 2020
© Bank Negara Malaysia, 2020. All rights reserved.
| null | Press Release |
20 Nov 2020 | Issuance of Commemorative Coins in Conjunction with APEC 2020 | https://www.bnm.gov.my/-/issuance-of-commemorative-coins-in-conjunction-with-apec-20-1 | https://www.bnm.gov.my/documents/20124/883228/apec_appendix1.pdf | null |
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Issuance of Commemorative Coins in Conjunction with APEC 2020
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12
Issuance of Commemorative Coins in Conjunction with APEC 2020
Embargo :
For immediate release
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1817 on
Friday, 20 November 2020
20 Nov 2020
Bank Negara Malaysia is pleased to announce the issuance of commemorative coins in conjunction with the Asia-Pacific Economic Cooperation Meetings 2020 in Malaysia (APEC 2020).
The commemorative coins were launched in conjunction with the APEC Economic Leaders’ Meeting on 20 November 2020.
Coin Design
A first for Malaysian coin issuances, the coins are minted with two contrasting surface techniques using advanced laser technology and digital frosting to create the effect of a rainbow.
Obverse
The centre of the coin features an artistic representation of 21 human figures which symbolise the collaboration of 21 APEC economies in sustaining the growth and development of the region. The words “ASIA-PACIFIC ECONOMIC COOPERATION 2020” are inscribed on the upper circumference of the coin with APEC 2020’s theme “OPTIMISING HUMAN POTENTIAL TOWARDS A FUTURE OF SHARED PROSPERITY” depicted on the lower circumference of the coin.
Reverse
The decorative floral element of songket motif (bunga pecah lapan) in the background depicts Malaysia’s rich culture. The face value of the coin is displayed at the centre of the coin, while the official logo of APEC 2020 is displayed on the lower part of the coin.
The commemorative coins have the following specifications:
Coloured Silver Commemorative Coin (proof)
This coin is made of fine silver with 99.9 purity and weighs 31.1 grams. It has a face value of RM10 and will be sold at RM253 a piece. The mintage quantity is 1,000 pieces.
Nordic Gold Brilliant Uncirculated (B.U) Commemorative Coin
This coin in matte finish is made mainly out of copper, and weighs 8.5 grams. It has a face value of RM1 and will be sold at RM13.20 a piece. The mintage quantity is 15,000 pieces.
750 units of sets of two coins comprising one coloured silver proof and one Nordic gold proof coin priced at RM308 per set are also available for purchase.
Note: Prices stated above are inclusive of 10% Sales and Services Tax (SST).
The detailed specifications of the coins are set out in Appendix I.
Ordering the coins
To provide a fair opportunity for members of the public to buy these limited edition coins, there will be a purchase limit, with each customer allowed to purchase a maximum of a Set of 2, a coloured silver coin (proof) and up to five Nordic gold (B.U.) coins. In the event of oversubscription, balloting will take place. The Bank will provide further information on ordering, payment and delivery in due course.
Bank Negara Malaysia
20 November 2020
© Bank Negara Malaysia, 2020. All rights reserved.
|
Monthly Highlights
October 2020
1
Headline inflation moderated slightly to -1.5% in October
• The moderation in headline inflation to -1.5%
(September: -1.4%) during the month reflected
lower inflation for communication services and
domestic retail fuel, respectively.
• The lower inflation in communication services
was also reflected in core inflation, which
declined to 0.8% (September: 1.0%).
-1.4 -1.4
-1.5
1.1 1.0
0.8
-4.0
-2.0
0.0
2.0
-4.0
-2.0
0.0
2.0
J
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-1
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F
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M
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A
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M
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J
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A
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S
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O
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-2
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F
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-2
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M
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A
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M
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Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1 Core inflation is computed by excluding price-volatile and price-administered items.
It also excludes the estimated direct impact of tax policy changes.
Source: Department of Statistics Malaysia (DOSM), Bank Negara Malaysia estimates
Contribution to Inflation
ppt. contribution %, yoy
4.3
2.5
5.1
1
2
3
4
5
6
Oct-
19
Dec-
19
Feb-
20
Apr-
20
Jun-
20
Aug-
20
Oct-
20
Total loans
Business loans
Household loans
1 Refers to outstanding loans of the banking system (excluding development
financial institutions (DFIs)).
Source: Bank Negara Malaysia
Sustained net financing growth
1
• Net financing growth was sustained at 4.5% in
October (September: 4.4%), with higher
contribution from corporate bonds (October:
5.0%, September: 4.3%). Outstanding loans
continued to expand (October: 4.3%,
September: 4.4%), supported by household
loans.
• Outstanding household loans grew by 5.1%
(September: 5.2%), with disbursements
sustained at levels above the historical trend.
• Outstanding business loan growth moderated
slightly to 2.5% (September: 2.7%). However,
total disbursements increased during the month
driven mainly by working capital loans.
% yoy
Contribution to Net Financing1 Growth and Outstanding
Loan Growth1
% yoy
3.2 3.2 3.1
1.1 1.2 1.4
4.2 4.4 4.5
Aug-20 Sep-20 Oct-20
Corporate Bonds
Banking System Loans
Net Financing
Export growth moderated in October
• Export growth moderated to 0.2% in October
(September: 13.6%), due mainly to weaker
E&E exports. Non-E&E manufactured exports
also recorded lower growth, weighed by
chemical & chemical products and optical &
scientific equipment.
• Looking ahead, exports are expected to be
supported by the recovery in global growth.
Nonetheless, the trade outlook remains
contingent on global developments surrounding
the COVID-19 pandemic.
Malaysia’s Exports by Product
%, yoy/Ppt. Contribution
Source: Department of Statistics, Malaysia (DOSM), MATRADE
8.0
3.1
-2.9
13.6
0.2
-40
-30
-20
-10
0
10
20
Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20
E&E Resource-based
Non-resource based Commodities
Others Gross exports (%, yoy)
Monthly Highlights
October 2020
Performance of domestic financial markets was mixed
• During the month, investor sentiments were
mainly affected by concerns over rising COVID-
19 cases globally and the implementation of
another round of movement restrictions in
some countries, including Malaysia.
• Consequently, global equity indices
experienced broad-based declines as investors
remained cautious over the outlook for a global
economic recovery. Similarly, the FBM KLCI
declined by 2.5%.
• Non-resident portfolio inflows, however,
continued to support the domestic bond market
during the month as expectations for prolonged
accommodative monetary policy in the
advanced economies supported yield-seeking
activities in the region. As a result, the 10-year
MGS yield declined marginally by 3.8 basis
points while the ringgit remained mostly
unchanged during the month.
Source: Bank Negara Malaysia, Bursa Malaysia
4.5
-1.3
0.4
-3.8
-2.5
0.04
10-year MGS
(bps)
Equity
(% change)
Ringgit
(% change)
-8 -6 -4 -2 0 2 4 6
Oct-20 Sep-20
-30.5
Financial Markets Performance in October
2
Banking system asset quality remains healthy post-blanket loan moratorium
• Overall gross impaired loans ratio edged higher,
albeit from historically low levels (October:
1.43%; September: 1.38%), driven by the
household segment.
• Total provisions grew by 5.54% for the month of
October (September: 7.44%) as banks continue
to set aside additional provisions against future
credit losses.
• Banks continue to restructure and reschedule
loans of viable borrowers who may still face
challenges servicing their loans.
Banking System Asset Quality
0.9
1.4
1.6
0.7
0.9
1.1
1.3
1.5
1.7
O
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9
N
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D
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9
J
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F
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M
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A
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M
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0
J
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J
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2
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A
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2
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S
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2
0
O
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2
0
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
Source: Bank Negara Malaysia
%
SIARAN AKHBAR
Ref. No.: 11/20/10 EMBARGO: Not for publication or
broadcast before 1500 hours on
Monday, 30 November 2020
MONTHLY HIGHLIGHTS – OCTOBER 2020
Headline inflation moderated slightly to -1.5% in October
• The moderation in headline inflation to -1.5% (September: -1.4%) during the
month reflected lower inflation for communication services and domestic retail
fuel, respectively.
• The lower inflation in communication services was also reflected in core inflation1,
which declined to 0.8% (September: 1.0%).
Export growth moderated in October
• Export growth moderated to 0.2% in October (September: 13.6%), due mainly to
weaker E&E exports. Non-E&E manufactured exports also recorded lower
growth, weighed by chemical & chemical products and optical & scientific
equipment.
• Looking ahead, exports are expected to be supported by the recovery in global
growth. Nonetheless, the trade outlook remains contingent on global
developments surrounding the COVID-19 pandemic.
Sustained net financing growth
• Net financing growth was sustained at 4.5% in October (September: 4.4%), with
higher contribution from corporate bonds (October: 5.0%, September: 4.3%).
Outstanding loans continued to expand (October: 4.3%, September: 4.4%),
supported by household loans.
• Outstanding household loans2 grew by 5.1% (September: 5.2%), with
disbursements sustained at levels above the historical trend.
1 Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the estimated
direct impact of tax policy changes.
2 Refers to outstanding loans of the banking system (excluding development financial institutions (DFIs)).
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
• Outstanding business loan growth moderated slightly to 2.5% (September: 2.7%).
However, total disbursements increased during the month driven mainly by
working capital loans.
Performance of domestic financial markets was mixed
• During the month, investor sentiments were mainly affected by concerns over
rising COVID-19 cases globally and the implementation of another round of
movement restrictions in some countries, including Malaysia.
• Consequently, global equity indices experienced broad-based declines as
investors remained cautious over the outlook for a global economic recovery.
Similarly, the FBM KLCI declined by 2.5%.
• Non-resident portfolio inflows, however, continued to support the domestic bond
market during the month as expectations for prolonged accommodative monetary
policy in the advanced economies supported yield-seeking activities in the region.
As a result, the 10-year MGS yield declined marginally by 3.8 basis points while
the ringgit remained mostly unchanged during the month.
Banking system asset quality remains healthy post-blanket loan moratorium
• Overall gross impaired loans ratio edged higher, albeit from historically low levels
(October: 1.43%; September: 1.38%), driven by the household segment.
• Total provisions grew by 5.54% for the month of October (September: 7.44%) as
banks continue to set aside additional provisions against future credit losses.
• Banks continue to restructure and reschedule loans of viable borrowers who may
still face challenges servicing their loans.
Bank Negara Malaysia
30 November 2020
Monthly Highlights October 2020_301120 - EN
Monthly Highlights October 2020_301120 - EN PR
MONTHLY HIGHLIGHTS – OCTOBER 2020
| Press Release |
20 Nov 2020 | International Reserves of Bank Negara Malaysia as at 13 November 2020 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-13-november-20-1 | null | null |
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International Reserves of Bank Negara Malaysia as at 13 November 2020
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20 Nov 2020
The international reserves of Bank Negara Malaysia amounted to USD104.9 billion as at 13 November 2020. The reserves position is sufficient to finance 8.6 months of retained imports and is 1.2 times total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities - 13 November 2020
Bank Negara Malaysia
20 November 2020
© Bank Negara Malaysia, 2020. All rights reserved.
| null | Press Release |
17 Nov 2020 | 25th EMEAP (Executives' Meeting of East Asia-Pacific Central Banks) Governors' Meeting [Part II] | https://www.bnm.gov.my/-/25th-emeap-executives-meeting-of-east-asia-pacific-central-banks-governors-meeting-part-i-1 | null | null |
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25th EMEAP (Executives' Meeting of East Asia-Pacific Central Banks) Governors' Meeting [Part II]
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25th EMEAP (Executives' Meeting of East Asia-Pacific Central Banks) Governors' Meeting [Part II]
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17 Nov 2020
The 25th EMEAP[1] Governors’ Meeting held its second session via video conference on 16 November 2020. Joining the meeting were Governors of the eleven EMEAP member central banks (“Governors”), as well as senior representatives from the International Monetary Fund and the Bank for International Settlements. The meeting was hosted by Mr Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, as this year’s Chair of EMEAP Governors’ Meetings.
Governors exchanged views on the regional economic outlook and long term implications of COVID-19 pandemic. Governors concurred that the economic and financial market impact of the pandemic has brought substantial challenges to policymakers. Under this unusual environment, EMEAP has played a critical role in identifying prevailing and potential risks and vulnerabilities, as well as the longer-term structural changes of regional economies. The Meeting also exchanged views on how policymakers should calibrate the policy measures, and support regional economies by facilitating the necessary economic restructuring through policies that seek to allocate resources in an efficient and effective manner. Governors also shared experiences in their own journeys towards greater digitalisation, including practical ways to enhance their capabilities to harness technology in modern day central banking.
EMEAP member central banks have been in close collaboration throughout the financial market stresses this year. Governors reaffirmed the importance of EMEAP as an effective platform for continuous policy dialogues, strengthening regional cooperation, and providing a regional perspective that informs and facilitates discussions at global forums during the current challenging time. EMEAP will continue to play an active role in promoting regional cooperation among central banking institutions to maintain financial stability and support economic recovery.
Governors also welcomed updates by the Monetary and Financial Stability Committee (MFSC) on its market surveillance and research activities, including initiatives in big data and sustainable finance.
Governors welcomed Reserve Bank of Australia’s offer to host the 26th EMEAP Governors’ Meeting in 2021.
________________________
[1] EMEAP is a co-operative forum of eleven central banks and monetary authorities in the East Asia and Pacific region: Reserve Bank of Australia, People’s Bank of China, Hong Kong Monetary Authority, Bank Indonesia, Bank of Japan, Bank of Korea, Bank Negara Malaysia, Reserve Bank of New Zealand, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore and Bank of Thailand.
Bank Negara Malaysia
17 November 2020
© Bank Negara Malaysia, 2020. All rights reserved.
| null | Press Release |
13 Nov 2020 | Economic and Financial Developments in the Malaysian Economy in the Third Quarter of 2020 | https://www.bnm.gov.my/-/economic-and-financial-developments-in-the-malaysian-economy-in-the-third-quarter-of-20-3 | https://www.bnm.gov.my/documents/20124/883228/Q3_en.pdf, https://www.bnm.gov.my/documents/20124/883228/3Q_table_en.pdf, https://www.bnm.gov.my/documents/20124/883228/3Q2020_GDP_Slides.pdf | null |
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Economic and Financial Developments in the Malaysian Economy in the Third Quarter of 2020
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Economic and Financial Developments in the Malaysian Economy in the Third Quarter of 2020
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13 Nov 2020
This document is in Portable Document File (PDF) format.
In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
If you already have the software, read the press release [PDF, 233KB]
See also:
Table 1: GDP by Expenditure Components and Economic Activity
Publication: Quarterly Bulletin Third Quarter 2020
Presentation slides [PDF]Bank Negara Malaysia
13 November 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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Q4_bm.doc
Pen: 02/05/59 (BN) Embargo: Tidak boleh disiakan atau diterbitkan
sebelum jam 1700 hours pada hari Isnin, 28 Januari
2005
Perkembangan Ekonomi dan Kewangan Malaysia
Pada Suku Keempat 2004
TINJAUAN KESELURUHAN
Pertumbuhan didorong oleh sektor swasta
Ekonomi Malaysia mencatat pertumbuhan sebanyak 5.6% pada suku
keempat 2004. Pertumbuhan didorong oleh aktiviti sektor swasta, sementara
Kerajaan Persekutuan meneruskan rancangan konsolidasi fiskalnya. Bagi
keseluruhan tahun 2004, ekonomi Malaysia berkembang sebanyak 7.1%.
48
50
52
54
56
58
60
62
64
66
S2-
02
S3 S4 S1-
03
S2 S3 S4 S1-
04
S2 S3 S4
RM bil
0
1
2
3
4
5
6
7
8
9
Perubahan
tahunan (%)
Momentum pertumbuhan kekal mapan pada S4
2004
5.6
2
Dalam sektor perkilangan, asas yang lebih pelbagai telah berjaya
menyederhanakan kesan kemerosotan dalam subsektor peralatan elektronik. Sektor
perkhidmatan kekal kukuh dengan pertumbuhan yang lebih tinggi dalam
kebanyakan subsektor. Sektor komoditi utama terus mencatat prestasi yang kukuh
disokong oleh pengeluaran yang lebih tinggi bagi minyak sawit dan gas asli. Walau
bagaimanapun, sektor pembinaan kekal lemah disebabkan terutamanya oleh aktiviti
kejuruteraan awam yang lebih rendah.
Nilai ditambah dalam sektor perkilangan meningkat sebanyak 5.4% pada
suku keempat 2004 (S3 2004: 9.9%). Kadar pertumbuhan terutamanya dalam
industri keluaran elektronik dan elektrik meningkat dengan sederhana (
pertumbuhan pengeluran: 4.7%, S3 2004: 19.3%) sejajar dengan penyelarasan
inventori dalam sektor elektronik global. Antara industri berorientasikan eksport
utama yang lain, industri keluaran kimia mencatat pertumbuhan yang lebih tinggi
sebanyak 13.4% (S3 2004: 8.7%), disebabkan oleh keluaran gas perindustrian dan
plastik yang lebih tinggi. Hasilnya, industri berorientasikan eksport sebagai satu
kumpulan mencatat pertumbuhan sebanyak 7.5% pada suku keempat (S3 2004:
12.8%). Sementara itu, pertumbuhan industri berorientasikan pasaran dalam negeri
kekal pada kadar pertumbuhan yang tinggi sebanyak 6.2% (S3 2004: 7.2%),
disokong oleh pertumbuhan yang kukuh dalam industri kelengkapan pengangkutan
dan logam yang direka serta industri besi dan keluli.
Nilai ditambah sektor perkhidmatan meningkat sebanyak 6.3% (S3 2004:
6.1%). Subsektor pengangkutan, penyimpanan dan komunikasi mencatatkan
pertumbuhan ketara disebabkan prestasi industri telekomunikasi yang
memberangsangkan dan perkembangan berterusan aktiviti berkaitan dengan
perdagangan. Dalam subsektor telekomunikasi, pertumbuhan diterajui oleh jumlah
pelanggan yang lebih banyak dalam segmen selular. Subsektor utiliti adalah
disokong oleh pertambahan permintaan elektrik oleh semua kategori pengguna.
Pertumbuhan sektor perniagaan borong, runcit dan restoran adalah sebanyak
6.9%. Subsektor kewangan, insurans, harta tanah dan perkhidmatan perniagaan
mencatatkan pertumbuhan sebanyak 6.2%.
3
Pada suku keempat, sektor pertanian dan perlombongan terus berkembang,
masing-masing sebanyak 7.7% dan 4.7% (S3 2004: masing-masing 5.3% dan
4.7%). Pertumbuhan dalam sektor pertanian disokong oleh prestasi sektor minyak
sawit yang amat memberangsangkan (16.5%), sementara pengembangan dalam
sektor perlombongan didorong terutamanya oleh pengeluaran gas asli yang lebih
tinggi.
Dalam sektor pembinaan, segmen kediaman dan bukan kediaman
berkembang dengan permintaan yang kukuh terutamanya permintaan terhadap
harta bertanah, disokong oleh pakej pembiayaan yang menarik dan peningkatan
pendapatan boleh guna. Pembinaan dalam segmen bukan kediaman pula didorong
terutamanya oleh permintaan terhadap ruang pejabat dan ruang perniagaan dalam
keadaan aktiviti perniagaan yang memuaskan. Walau bagaimanapun, sektor
pembinaan secara keseluruhan menguncup sebanyak 3.3% (S3 2004: -3%)
disebabkan terutamanya oleh aktiviti kejuruteraan awam yang lebih rendah.
Pada suku keempat, sektor swasta menerajui pertumbuhan dalam
permintaan dalam negeri. Sentimen pengguna meningkat disebabkan oleh keadaan
guna tenaga yang stabil dan pendapatan boleh guna yang tinggi yang diperoleh
daripada pendapatan eksport komoditi. Keadaan pembiayaan kewangan yang
menggalakkan, kadar faedah yang rendah, kadar inflasi yang rendah dan
pembayaran bonus akhir tahun menyebabkan peningkatan penggunaan swasta
sebanyak 9.7%. Sungguhpun Indeks Sentimen Pengguna, penunjuk penggunaan
hadapan yang dikumpul oleh Insititut Penyelidikan Ekonomi Malaysia (MIER) adalah
lebih rendah pada suku keempat, indeks tersebut terus melebihi paras ambang 100
mata. Ini menunjukkan bahawa keyakinan pengguna kekal positif. Keyakinan
pengguna ditunjukkan oleh peningkatan dalam import barangan pengguna, jualan
kereta penumpang, serta pinjaman yang diluluskan dan dikeluarkan kepada isi
rumah untuk tujuan penggunaan dan pembelian barangan tahan lama.
Pertumbuhan penggunaan awam menyederhana pada 3.7% (3Q 2004: 4.6%).
Pada suku keempat, aktiviti pelaburan swasta adalah pesat disebabkan
perbelanjaan ke atas penggantian mesin dan kelengkapan dalam sektor perkilangan
serta pelaburan dalam alat peninjauan seismos dan geofizik untuk aktiviti
4
penerokaan minyak. Hasilnya, pembentukan modal tetap kasar meningkat (2.2%)
meskipun terdapat penurunan dalam perbelanjaan pembangunan Kerajaan
Persekutuan. Walaupun perbelanjaan pembangunan lebih rendah, perbelanjaan
terus disalurkan kepada operasi fiskal dan perkhidmatan yang penting seperti
pendidikan, perumahan, pengangkutan, pertanian dan pembangunan luar bandar.
Malaysia mencapai pertumbuhan ekonomi dalam keadaan inflasi yang
rendah pada suku keempat. Inflasi meningkat sedikit kepada 2.1% pada suku
keempat. Ini mencerminkan peningkatan harga makanan serta caj pengangkutan
persendirian dan kenaikan cukai rokok serta tembakau yang tinggi. Walau
bagaimanapun, risiko peningkatan inflasi dibatasi oleh pembinaan kapasiti dan
pertumbuhan produktiviti yang berterusan. Sementara itu, keadaan pasaran pekerja
kekal stabil, disokong oleh pertumbuhan produktiviti yang kukuh. Dalam sektor
perkilangan, nilai jualan benar bagi seorang pekerja meningkat sebanyak 15.3%.
Pada suku keempat, kedudukan imbangan pembayaran Malaysia kekal
kukuh, dengan akaun perdagangan mencatat lebihan yang besar dan mapan
sebanyak RM21 bilion (S3 2004: RM22.7 bilion). Eksport kasar mencatat
pertumbuhan yang lebih rendah sebanyak 16.1% disebabkan terutamanya oleh
penurunan eksport barangan elektronik dan elektrik. Import kasar meningkat,
walaupun pada kadar yang lebih sederhana sebanyak 18.6%. Import barangan
pengantara terus berkembang sebanyak 12.8%, disokong oleh permintaan yang
lebih tinggi terhadap logam dan input yang berasaskan sumber. Import barangan
modal terus berkembang dengan kukuh sebanyak 37.7%, dengan sebahagian besar
daripadanya disalurkan kepada industri perkilangan dan perkhidmatan untuk tujuan
meningkatkan tahap teknologi serta pembinaan kapasiti. Import barangan modal
tidak termasuk barangan lumpy, meningkat sebanyak 26.6%. Sejajar dengan
pendapatan boleh guna serta permintaan yang lebih tinggi berikutan musim
perayaan, import barangan pengguna meningkat sebanyak 16.5% pada suku
keempat, dengan permintaan yang lebih tinggi terhadap makanan dan minuman
serta barangan pengguna.
Dalam akaun kewangan, pelaburan langsung asing (FDI) serta pelaburan
luar negeri dan portfolio meningkat pada suku keempat. Aliran masuk FDI kasar
5
meningkat kepada RM4.6 bilion dan disalurkan dengan seimbang kepada sektor
perkilangan, perkhidmatan serta minyak dan gas. Aliran keluar kasar bagi pelaburan
luar negeri meningkat dengan ketara kepada RM16.5 bilion, disebabkan
terutamanya oleh pemberian pinjaman jangka pendek yang lebih tinggi oleh syarikat
milik bukan pemastautin di Malaysia kepada syarikat luar negeri yang berkaitan,
berikutan pemusatan aktiviti operasi perbendaharaan. Tidak termasuk aliran keluar
operasi perbendaharaan, pelaburan luar negeri daripada sektor perkhidmatan,
minyak dan gas, dan perkilangan adalah lebih tinggi pada suku keempat. Pelaburan
portfolio mencatat aliran masuk bersih yang lebih tinggi sebanyak RM11.1 bilion
pada suku keempat, mencerminkan penglibatan semula pelabur asing yang aktif
dalam pasaran ekuiti dan sekuriti hutang.
Rizab antarabangsa Bank Negara Malaysia bertambah kukuh lagi dengan
peningkatan RM37.4 bilion (AS$9.8 bilion) pada suku keempat tahun 2004 hingga
mencapai paras tertinggi sebanyak RM253.5 billion (AS$66.7 bilion) pada 31
Disember 2004. Peningkatan rizab mencerminkan pembawaan pulang perolehan
eksport yang lebih besar, serta aliran masuk FDI dan dana portfolio yang lebih
tinggi. Rizab terus meningkat kepada RM269.6 bilion (AS$71 bilion) pada 15
Februari 2005, disokong terutamanya oleh pembawaan pulang perolehan eksport
yang berterusan. Paras rizab adalah cukup untuk membiayai 8.5 bulan import
tertangguh dan merupakan 6 kali hutang luar negeri jangka pendek.
Dasar monetari terus menyokong pertumbuhan
Dalam persekitaran inflasi yang rendah, Kadar Dasar Semalaman (OPR)
kekal pada paras 2.70% pada bulan November. Dasar monetari terus menyokong
pengembangan dalam pelaburan swasta dan penggunaan swasta. Pembiayaan
kasar sektor swasta melalui sistem perbankan dan pasaran modal adalah lebih
tinggi, iaitu berjumlah RM142.6 bilion, bersamaan dengan peningkatan kadar
tahunan sebanyak 6.7%.
Pengeluaran pinjaman kepada sektor perniagaan meningkat pada asas
tahunan 7.8% . Pengeluaran pinjaman ini disalurkan terutamanya kepada sektor
perkilangan (35.7% daripada jumlah pengeluaran pinjaman kepada perniagaan);
6
sektor perdagangan borong dan runcit, restoran dan hotel (26.4%); dan sektor
kewangan, insurans dan perkhidmatan perniagaan (9.4%). Pengeluaran pinjaman
kepada syarikat besar serta perusahaan kecil dan sederhana (PKS) masing-masing
meningkat pada kadar tahunan 7.2% dan 9.1%. Sejumlah RM8.7 bilion pinjaman
baru diluluskan kepada 25,918 akaun PKS pada suku keempat. Sementara itu,
pembiayaan kepada sektor isi rumah kekal mapan dengan pengeluaran pinjaman
meningkat sebanyak 12%.
Terbitan kasar sekuriti baru oleh sektor swasta dalam pasaran sekuriti hutang
swasta (PDS) kekal tinggi, iaitu berjumlah RM10.1 bilion, terutamanya dalam sektor
pembinaan dan utiliti. Khususnya, terbitan oleh sektor korporat adalah untuk
membiayai aktiviti baru berjumlah RM3.8 billion atau 40.3% daripada jumlah terbitan
baru. Dalam pasaran ekuiti, dana yang lebih tinggi berjumlah RM2.3 bilion telah
diperoleh, dengan RM2 bilion adalah daripada 24 tawaran awam awal.
Aliran masuk dana perdagangan dan modal yang lebih besar pada suku
keempat terurus. Operasi mudah tunai Bank Negara Malaysia bertujuan untuk
memastikan paras kadar faedah adalah konsisten dengan keadaan dalam negeri.
Oleh itu, pertumbuhan agregat monetari secara luas, M3, meningkat sejajar dengan
perkembangan aktiviti ekonomi.
Sistem perbankan mempamerkan kedudukan yang kukuh
Pada suku keempat, sistem perbankan terus berada pada kedudukan yang
kukuh, dengan tahap permodalan yang tinggi, paras keuntungan yang bertambah
baik serta pinjaman tidak berbayar pada tahap paling rendah sejak krisis kewangan
Asia. Nisbah modal berwajaran risiko (RWCR) dan nisbah modal teras (CCR) sistem
perbankan kekal tinggi masing-masing pada 13.8% dan 10.8%, walaupun mencatat
sedikit penurunan. Peningkatan dalam asas modal disebabkan terutamanya oleh
potongan modal yang lebih rendah bagi pelaburan dalam anak-anak syarikat (-
RM1.6 bilion) pasca penggabungan Bafin, sementara kenaikan aset berwajaran
risiko yang lebih tinggi pula disebabkan terutamanya oleh peningkatan dalam
pemberian pinjaman. Sistem perbankan mencatat peningkatan keuntungan sebelum
7
cukai sebanyak 6.1% kepada RM3 bilion pada suku keempat, berbanding dengan
RM2.8 bilion pada suku sebelum ini.
Pinjaman tidak berbayar bersih (NPL) berdasarkan klasifikasi 6 bulan terus
menurun dan merupakan 5.9% daripada jumlah pinjaman bersih, iaitu tahap paling
rendah sejak krisis Asia (S3 2004: 6.1%). Nisbah NPL bersih berdasarkan
klasifikasi 3 bulan juga menunjukkan penurunan yang ketara kepada RM37.5 bilion
atau 7.6% daripada jumlah pinjaman bersih (S3 2004: 8.1%). Penurunan ini
disebabkan terutamanya oleh pemulihan NPL yang lebih tinggi, pengelasan semula
dan hapuskiraan.
Pertumbuhan ekonomi Malaysia dijangka kekal mapan dalam jangka masa
terdekat …
Melangkah ke hadapan, pengembangan ekonomi dunia bagi tahun 2005
dijangka kekal pada kadar yang stabil. Kadar penurunan dalam pertumbuhan di
Amerika Syarikat dan R.R. China di jangka sederhana, memandangkan
penyelarasan terhadap ketidakseimbangan dalam ekonomi-ekonomi tersebut
dilaksanakan secara beransur-ansur. Dasar monetari dijangka kekal akomodatif
memandangkan inflasi diramal kekal terurus dalam keadaan harga minyak yang
stabil. Keadaan pasaran pekerja di beberapa rantau telah bertambah baik.
Perkembangan ini akan menyokong pertumbuhan di rantau Asia. Kesan daripada
penurunan dalam kitaran elektronik adalah berbeza-beza mengikut negara.
Sungguhpun industri elektronik global sedang menghadapi konsolidasi setelah
memuncak pada pertengahan tahun 2004, penurunan dalam kitaran elektronik ini
dijangka sederhana. Ini memandangkan permintaan global terus kekal,
penyelarasan inventori yang lebih pantas dan paras inventori yang secara relatifnya
rendah. Secara keseluruhan, permintaan dalam negeri di rantau ini dijangka
mendorong pertumbuhan serantau, disokong oleh asas-asas yang kukuh dan
sumbangan daripada sektor pertumbuhan baru. Kesan bencana tsunami dijangka
kecil dan untuk tempoh yang singkat. Kesan tersebut menjejaskan industri
pelancongan dan perikanan di beberapa kawasan di negara-negara yang terbabit.
8
Oleh itu, prospek pertumbuhan Malaysia terus menggalakkan pada tahun
2005. Kenaikan yang mapan dalam Indeks Pelopor bagi bulan November
menunjukkan bahawa momentum pertumbuhan ekonomi akan berterusan sehingga
tahun 2005. Pertumbuhan akan didorong oleh sektor swasta memandangkan sektor
awam melaksanakan konsolidasi fiskal. Indeks Sentimen Pengguna terus melebihi
paras ambang 100 mata pada bulan Disember, menunjukkan keyakinan pengguna
yang teguh. Pertumbuhan ekonomi Malaysia akan terus dicapai dalam keadaan
inflasi yang rendah. Risiko ke atas bagi inflasi dibatasi pengembangan kapasiti dan
peningkatan produktiviti yang berterusan.
Pendirian berkaitan dasar monetari akan terus memastikan kadar faedah
terus selari dengan kegiatan ekonomi dalam negeri di samping menyokong
pertumbuhan.
Bank Negara Malaysia
28 Febuari 2005
SIARAN AKHBAR
Ref. No.: 11/20/05 EMBARGO: Not for publication or
broadcast before 1200 hours on
Friday, 13 November 2020
ECONOMIC AND FINANCIAL DEVELOPMENTS IN MALAYSIA
IN THE THIRD QUARTER OF 2020
The Malaysian economy improved to record a smaller contraction of 2.7% in
the third quarter of 2020 (2Q 2020: -17.1%)
The improvement largely reflected the reopening of the economy from COVID-19
containment measures and better external demand conditions. Improvements in
growth were seen across most economic sectors, particularly in the manufacturing
sector, which turned positive following strong E&E production activity. On the
expenditure side, domestic demand contracted at a slower pace, while net exports
rebounded. On a quarter-on-quarter seasonally-adjusted basis, the economy turned
around to register an expansion of 18.2% (2Q 2020: -16.5%).
For the quarter, headline inflation recorded a smaller negative at -1.4%, due mainly
to the higher domestic retail fuel prices, in line with the recovery in global oil prices.
Core inflation moderated slightly to 1.0%.
Exchange rate developments
In the third quarter of 2020, the ringgit appreciated by 2.9% against the US dollar,
following continued non-resident portfolio inflows. This was driven by positive
investor sentiments following signs of recovery in global economic activity as
countries eased movement restrictions and progressively restarted their economies.
Improvements in investor risk appetite were also supported by the changes in the US
Federal Reserve's monetary policy framework, which suggests that US monetary
policy could remain accommodative for a longer period. This development is in line
with most regional currencies, which appreciated against the US dollar during the
quarter. In the more recent period beyond the third quarter, despite the recent
resurgence in COVID-19 cases across some advanced and emerging market
economies, PR China’s steady economic recovery and IMF’s upward revision to its
projection for global growth for 2020 continued to support investor sentiments. As a
result, Malaysia experienced non-resident portfolio inflows and the ringgit
D i t e r b i t k a n o l e h :
J a b a t a n K o m u n i k a s i S t r a t e g i k , T i n g k a t 1 4 , B l o k B , B a n g u n a n B a n k N e g a r a M a l a y s i a ,
J a l a n D a t o ’ O n n , 5 0 4 8 0 K u a l a L u m p u r , M a l a y s i a .
T e l e f o n : + 6 0 ( 3 ) 2 6 9 8 8 0 4 4 F a k s i m i l i : + 6 0 ( 3 ) 2 6 9 3 6 9 1 9
W e b : w w w . b n m . g o v . m y
appreciated by 0.6% against the US dollar since end-September 2020 (as at 12
November). However, the global environment remains highly uncertain in the near-
term, which may lead to periods of heightened capital flows and exchange rate
volatility going forward.
Financing conditions
Net financing to the private sector1 continued to expand by 4.6% on an annual basis.
Outstanding loan growth increased during the quarter, supported mainly by
household loans with broad-based improvements in loan demand. Outstanding
business loans registered modest growth due to slower loans disbursed for working
capital purposes. Loan disbursement levels also recovered, with disbursements to
households exceeding its historical levels.
The Malaysian economy is expected to improve further going into 2021 in
tandem with better global demand and domestic policy support
The recent resurgence of COVID-19 cases and targeted containment measures
could affect the momentum of the recovery in the final quarter of the year. However,
as most economic sectors have been allowed to continue to operate subject to
compliance with standard operating procedures (SOPs), the impact is expected to be
less severe compared to the containment measures during previous periods.
Going into 2021, growth is expected to recover, benefitting from the improvement in
global demand and a turnaround in public and private sector expenditure amid
various policy support. This includes Government measures such as KITA PRIHATIN
and the recently announced Budget 2021, specifically the Bantuan Prihatin Rakyat,
targeted wage subsidies and public projects. Additionally, the continued financial
measures and low interest rate environment are also expected to lend further support
economic activity.
Headline inflation is projected to average higher in 2021, primarily reflecting the
higher projected global oil prices and the lapse in the impact from the tiered electricity
tariff rebate in 2020. Underlying inflation is expected to be subdued amid spare
capacity in the economy. The outlook for inflation trajectory would mainly depend on
global oil and commodity price developments.
Bank Negara Malaysia
13 November 2020
1 Comprises outstanding loans from the banking system and development financial
institutions (DFIs), and outstanding corporate bonds.
3Q GDP 2020
Prestasi Ekonomi Suku Ketiga Tahun 2020
13 November 2020
Sidang Akhbar
Global growth improved in 3Q 2020 as most economies
eased COVID-19 containment measures
Source: CEIC, national authorities
Global Growth
• PR China expanded amid stronger consumer demand.
• Rebound in regional exports.
• Financial market volatility moderated amid the resumption of economic activity.
• Labour market weaknesses in major EMEs weighed on private sector expenditure.
• Resurgence in COVID-19 cases necessitates proactive policy support amidst renewed
containment measures.
3.2
-0.6 -2.7
-9.0
-5.3
-14.8 -13.3
-21.5
-16.9
4.9 3.3
-1.3 -2.9 -3.5 -4.3
-7.0 -9.6
-11.5
PR China Chinese
Taipei
Korea US Indonesia Euro Area Singapore UK Philippines
2Q20 3Q20
Real GDP Growth
Annual change (%)
2
UpdatedUpdatedUpdated
123.2
73.1
127.3
Jan
20
Mar
20
May
20
Jul
20
Sep
20
Source: IHS Markit, Department of Statistics Malaysia, Bank Negara Malaysia
Global Purchasing
Managers Index
(PMI)
Commercial
vehicle sales
IPI for Manufacturing
Indicators suggest underlying domestic economic activity
was on a recovery path from the trough in April
3
46.1
26.2
53.3
Feb
20
Apr
20
Jun
20
Aug
20
Oct
20
9.8
6.2
11.3
Mar
20
May
20
Jul
20
Sep
20
2.2
0.0
5.0
Mar
20
May
20
Jul
20
Sep
20
‘000 units
s
105.9
43.4
114.6
Mar
20
May
20
Jul
20
Sep
20
IPI for Construction-
Related Cluster
Updated
Credit Card
Spending
RM billion
Updated
In the third quarter, Malaysia’s GDP growth rebounded
significantly
4
Source: Department of Statistics Malaysia
Improving external
demand
Stimulus measuresRelaxation of movement
restrictions
Updated
4.5 4.8 4.4 3.6 0.7
-17.1
-2.7
0.9 1.3 0.8 0.6 -2.0 -16.5
18.2
1Q
19
2Q
19
3Q
19
4Q
19
1Q
20
2Q
20
3Q
20
yoy qoq SA
Real GDP Growth (Quarterly)
Period-on-period change (%)
Key supporting factors:
Risk
Improvements registered across major sectors
GDP, Annual change (%)
MiningManufacturing ConstructionServices
Improving oil &
gas demand
Stronger external
demand
Lower oil palm
harvesting
activity
Resumption of
more projects
across all sub
sectors
Continued
recovery across
all sub-sectors
post-MCO
Source: Department of Statistics Malaysia
-16.2
-4.0
2Q-20 3Q-20
-18.3
3.3
2Q-20 3Q-20
1.0
-0.7
2Q-20 3Q-20
-20.0
-6.8
2Q-20 3Q-20
-44.5
-12.4
2Q-20 3Q-20
Agriculture
Updated
5
Updated
Faster recovery
in exports
Improvement in
capital spending
mainly by the
general
Government
Better structures
investment amid
resumption of
construction
activity
Improvement in
income conditions
and support from
stimulus measures
Higher Govt.
spending on
emoluments and
supplies &
services
-18.5
-2.1
2Q-20 3Q-20
-38.6
21.9
2Q-20 3Q-20
-38.7
-18.6
2Q-20 3Q-20
-26.4
-9.3
2Q-20 3Q-20
All demand components recorded a significant recovery
GDP, Annual change (%)
Net
exports
Public
consumption
Private
consumption
Source: Department of Statistics Malaysia
Updated
6
Private
investment
Public
investment
2.3 6.9
2Q-20 3Q-20
UpdatedUpdated
Recovery in trade activity amid higher external demand
Positive turnaround in
exports…
Source: Department of Statistics Malaysia
Annual change, %
Gross Export Growth
-0.9
-3.2
-0.4
-15.1
4.4
-20
-15
-10
-5
0
5
10
3Q-19 4Q-19 1Q-20 2Q-20 3Q-20
-0.9
-3.2
-0.4
-15.1
4.4
-20
-15
-10
-5
0
5
10
3Q-19 4Q-19 1Q-20 2Q-20 3Q-20
E&E Non-E&E
Mineral Agriculture
Others Overall
Ppt contr./Annual change, %
Gross Exports by Destination
…supported by higher demand
from key trade partners…
-0.9
-3.2
-0.4
-15.1
4.4
-20
-15
-10
-5
0
5
10
3Q-19 4Q-19 1Q-20 2Q-20 3Q-20
ASEAN PR China
EU USA
Rest of world Overall
Ppt contr./Annual change, %
…and rebound in E&E exports
Gross Exports by Product
Updated
s7
Current account of the balance of payments registered a surplus of RM26.1 billion or 7.1% of GDP
As mobility restrictions were eased and economic activity
resumed, labour market conditions improved
Decline in unemployment rate was supported
by positive re-hiring activity
Smaller contraction in employment while the
unemployment rate eased further
Employment growth
Source: Department of Statistics Malaysia
6,143
10,084
18,579
16,660
9,261
7,388 7,416
20
8 6
11
25
43
55
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20
Jobless claims (persons) Placement rate (%)
Placement rates and jobless claims
For every 100 job losses,
there are 55 new placements
5.0
5.3
4.9
4.7 4.7 4.6
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20
Unemployment rate (%)
-1.0
-1.6
-1.0
-0.7
-0.2 -0.2
Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20
Annual change, %
Source: Employment Insurance System, Social Security Organisation
8
UpdatedUpdated
6.4
-36.0
0.1
Jan
20
Mar
20
May
20
Jul
20
Sep
20
Recovery in private consumption remains broadly intact
9
Source: Department of Statistics Malaysia
Latest indicators suggest household spending rebounded from its trough in 2Q20 amid
improving income conditions
-0.1
-99.7
27.7
Jan
20
Mar
20
May
20
Jul
20
Sep
20
Index of Retail TradePrivate sector wages Passenger car sales
Annual change, % Annual change, % Annual change, %
Factors supporting private consumption going forward:
Gradual improvement in
broad income conditions
Continued policy
assistance going into 2021
Less stringent containment
measures relative to 1H 2020
Updated
2.1
-5.6
-2.6
1Q20 2Q20 3Q20
Recent resurgence of COVID-19 cases in major economies
pose a downside risk to growth
Mobility has stagnated after rebounding from the
second quarter trough, and may worsen…
Note: Chart shows 7-day moving average of retail and recreation category
Source: Google Community Mobility Report, BNM estimates
-55
-45
-35
-25
-15
-5
5
15
10
-M
ar
10
-A
pr
10
-M
ay
10
-J
un
10
-J
ul
10
-A
ug
10
-S
ep
10
-O
ct
10
-N
ov
AE
EME ex. PR China
Global Mobility Indicators
% change from 3 Jan – 6 Feb baseline
…amid still-unresolved pandemic outbreaks
Note: Charts show 7-day moving average of daily COVID-19 cases
Source: John Hopkins University, BNM estimates
Daily COVID-19 Cases between 22-Jan and 10-Nov
Asia
Updated
10
Europe
Americas Africa
Domestically, while targeted containment measures could
weigh on growth, the impact will be less severe than in 2Q20
Most economic sectors allowed to operate, subject to SOPs
The current targeted mobility restriction primarily aimed to minimise social interactions
The nation is more prepared to adapt to SOPs
Households and businesses able to adjust more quickly to recent mobility
restrictions
Policy responses in place to support the economy
Accommodative monetary policy, continued assistance to vulnerable segments,
cash transfers to affected households are gaining traction in supporting the
economy
Updated
11
Updated
**The positive growth during the CMCO period could be attributable to an increase in (i) merchants using cashless terminals; (ii) use of cashless spending; and (iii)
recovery in consumer spending, given the improvement in labour market conditions.
Source: Google Mobility, BNM estimate
Thus far, consumer spending has not been affected as
much in the current CMCO compared to the MCO in 2Q20
-57.0
-35.4
-20.1
MCO
(18 Mar - 3 May)
CMCO
(4 May - 10 Jun)
CMCO
(14 Oct - 6 Nov)
Mobility (retail, recreation, grocery)
% change from 3 Jan – 6 Feb baseline
-50.0
5.0
26.8
MCO
(18 Mar - 3 May)
CMCO
(4 May - 10 Jun)
CMCO
(14 Oct - 10 Nov)
Physical debit card spending**
% change from 3 Jan – 6 Feb baseline
-3.4
19.4
34.5
MCO
(18 Mar - 3 May)
CMCO
(4 May - 10 Jun)
CMCO
(14 Oct - 10 Nov)
Online spending**
% change from 3 Jan – 6 Feb baseline
The impact of the recent CMCOs on 2020 GDP is about half of the impact of the MCO in 2Q20
12
Going into 2021, Malaysia’s GDP is projected to grow
within the range of 6.5% to 7.5%
Source: Department of Statistics Malaysia, Ministry of Finance
-8
-6
-4
-2
0
2
4
6
8
10
2018 2019 2020f 2021f
Malaysia’s Real GDP Growth
Annual change (%)
6.54.3
-4.5
4.8
7.5
Updated
13
Forecast of Malaysia’s 2021 growth
Annual change (%)
7.8
6.3
IMF World Bank
Path to recovery to continue going into 2021 Multilateral institutions are also projecting
strong recovery for Malaysia
Updated
Growth will be driven by a rebound in global demand
14
Updated
Global growth
Source: IMF WEO (Oct 2020), Department of Statistics Malaysia
* share of 2019 Malaysia’s exports
Annual change, %
1 -10.4 8.3
Annual change, %
Updated
Global growth and trade are projected to
improve
Better prospects for Malaysia’s key
trading partners
GDP Growth
(Annual change %)
14.2%* of
Malaysia’s
exports
13.8%* of
Malaysia’s
exports
Global trade
1.0
-10.4
8.3
2019 2020f 2021f
2.8
-4.4
5.2
2019 2020f 2021f
-4.3
3.1
2020f 2021f
9.7%* of
Malaysia’s
exports
1.9
8.2
2020f 2021f
GDP Growth
(Annual change %)
GDP Growth
(Annual change %)
-6.0
5.0
2020f 2021f
Restart of RAPID
refinery complex
Ramp up in new E&E
facilities4 to meet
higher demand
Commencement of
PFLNG2 facility
Improving investment
activities
Ramp up in existing and new
production facilities
The pick-up in investment and production activities would
also provide support to growth in 2021
15
Updated
Gradual normalisation in
economic activities
Better
manufacturing
production
Continued rehiring
activities and better
income prospects
Gradual
improvement in
consumer
spending
Firm investments in
rubber and medical-
related sectors1
Further progress of
large infrastructure
projects2
Roll-out of new
catalytic investment
/ high multiplier
projects3
1 Include RM10bn committed investment in rubber products
2 Including MRT2, ECRL, West Coast Expressway
3 JENDELA, JB-Singapore RTS, investment approved under PENJANA incentives for E&E and healthcare subsectors
4 For data storage and servers and high-end consumer products
Updated
Forward looking indicators suggest firm support for
recovery in trade and business activity
3.3
13.4
6.36.2
24.6
19.0
WSTS
Semicon
sales
Healthcare
IT
Cloud
computing
revenue
2020
2021
Industry Forecast for Global E&E
Products
46.7
33.5
45.9
1Q20 2Q20 3Q20
Malaysia’s New Export Orders,
PMI
Early Stage1 Construction Work
Done
18.3
18.9
19.9
1Q20 2Q20 3Q20
Rising demand for technology
and healthcare products
Rebound in external demand Pick up in early stage
structures investment
Source: World Semiconductor Trade Statistics,
Markets and Markets, Gartner
Source: IHS Markit 1 Refers to 0 – 30% construction work done
Source: Department of Statistics Malaysia
(Annual growth, %) (Index) (% of total work done)
16
The reductions in the OPR this year will continue to
provide stimulus to the economy
Source: Bank Negara Malaysia
%
Overnight Policy Rate (OPR)
1.0
1.5
2.0
2.5
3.0
3.5
2012 2013 2014 2015 2016 2017 2018 2019 2020
1.75%
• Overnight Policy Rate (OPR) has been
reduced by a total of 125 basis points
from 3.00% to 1.75% this year
• Going forward, the MPC will be guided by
evolving conditions and their implications
on the outlook for inflation and growth
17
Updated
Further support to growth from continued policy
measures, particularly for the vulnerable segments
Households
Labour market
1H20 1H21 2H21
MeasuresSegments
Various cash transfers (e.g. BPR and BPN)
Targeted loan moratorium and other repayment
assistance
EPF withdrawals and reduction in employees EPF contribution
2H20
18
Blanket loan
moratorium for HHs
To preserve and
create jobs
For cash flow
relief and
spending support
Businesses
For cash flow relief
and business
continuity
Targeted loan moratorium and other repayment
assistance
Tax relief and other cost reduction measures
Various financing schemes (e.g. PENJANA Tourism Financing, Targeted
Relief and Recovery Facility, High Tech Facility)
Wage Subsidy Program
Hiring and training
assistance
for businesses
Targeted Wage Subsidy Program
Enhanced hiring incentives
(PenjanaKerjaya), and re-skilling and up-
skilling initiatives
Updated
Blanket loan
moratorium for SMEs
Inflationary pressures to remain muted
1Core inflation is computed by excluding price-volatile and price-administered items. It also excludes the estimated direct impact of consumption tax policy changes
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
Smaller negative headline inflation in 3Q 2020
amid the recovery in global oil prices
In 2021, headline inflation is expected to be higher,
while core inflation would remain subdued
Assessments for 2021
Annual change, % /
Ppt contribution to headline inflation
2Q20 3Q20
Contribution to Headline Inflation by Component
-2.6
-1.4
1.2
1.0
-4
-3
-2
-1
0
1
2
Price-volatile items (ppt)
Core inflation¹ (ppt)
Fuel (ppt)
Other price-administered items (ppt)
Headline inflation (%)
Core inflation¹ (%)
1 Headline inflation is expected to
average higher at between 1 to 3%,
mainly reflecting higher projected global oil
prices
2 Core inflation would remain subdued
amid spare capacity in the economy
3 Uncertainties in the 2021 outlook
• Trajectory mainly depends on global oil
and commodity prices
19
Updated
Deflation is the persistent and broad-based decline in
prices, distinct from a temporary period of negative inflation
Current assessments
Inflation dynamics Inflation expectations Contained pressures from
wider economic environment
• Price declines in the CPI
basket is not pervasive
(3Q 2020: 16% of items;
2010-2018 average: 22%)
• Short- to medium-term
inflation expectations are
well anchored
• No unusual inflation
uncertainty
Negative inflation due to lower global
oil prices is not unique to Malaysia
Some countries in the region have
also had similar experiences
Annual Inflation (%)
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
Sep-19 Dec-19 Mar-20 Jun-20 Sep-20
Singapore
Malaysia
Thailand
Source: Department of Statistics Malaysia and Bloomberg
• Sustained credit
intermediation
• Relief measures help to
contain defaults and
adverse feedback
20
Updated
Domestic bond market experienced continued non-resident portfolio
inflows amid signs of recovery in global economic activity
bps
%
Further inflows into the domestic bond market…
4.4
-49.0 -20.6
-65.1
0.8
-54.6
6.1
-50.5
-100
-80
-60
-40
-20
0
20
Q1 Q2 Q3 YTD
Malaysia Regional Avg
Movement of 10-Year Sovereign Bond Yields
Movement of Equity Prices
-15.0
11.1 0.3 -1.2
-23.6
12.8
-0.1 -5.1
-35
-25
-15
-5
5
15
25
Q1 Q2 Q3 YTD
Malaysia Regional Avg
-25
-15
-5
5
15
25
Ja
n-
20
Fe
b-
20
M
ar
-2
0
Ap
r-2
0
M
ay
-2
0
Ju
n-
20
Ju
l-2
0
Au
g-
20
Se
p-
20
O
ct
-2
0
N
ov
-2
0
Bond
Equity
Cumulative Non-resident Portfolio Flows and
MYR/USD change
Q1 Q2 Q3
-4.9 +0.5 +2.9 MYR/USD
RM billion
Quarter
Source: Bank Negara Malaysia, Bursa Malaysia
… partly contributing to an improvement in
bond yields
*Regional countries include Indonesia, the Philippines, PR China, Singapore, South
Korea and Thailand. YTD as at 11 November 2020.
Source: Bank Negara Malaysia, Bloomberg
21
Updated
3.0 3.5
0.6
1.13.7
4.6
2Q 2020 3Q 2020
Outstanding corporate bonds**
Outstanding loans*
Net financing
Higher financing growth, especially to households
Expansion in both loans and
corporate bonds
*Loans from banking system and development financial institutions (DFIs), **Excludes issuances by Cagamas and non-residents, ***Loans from banking system only
****Others include loans for the purchase of residential properties and mergers and acquisitions
Note: Numbers may not add up due to rounding
Source: Bank Negara Malaysia
Annual change, % / Cont. to growth, ppt
Net Financing* Outstanding Household Loans*
Annual change, % / Cont. to growth, ppt
-0.7 -0.4
3.8 4.1
0.8
1.2
-0.1
0.6
3.7
5.6
2Q 2020 3Q 2020
Passenger cars
Personal uses
Residential properties
Other purposes
Total HH loan growth
Outstanding Business Loans***
Higher household loan growth Business loans moderated
amid lower working capital
loan growth
-0.1 -0.1
2.2 2.4
2.0
0.3
4.2
2.7
2Q 2020 3Q 2020
Working capital
Investment-related
Others****
Total business loan growth
Annual change, % / Cont. to growth, ppt
Updated
22
Banking system continues to support business financing,
supplemented by various funds targeted for SMEs
Updated
23
Sustained business loans disbursements BNM funds for SMEs have been upsized to
further support economic recovery
Updated
196.7
180.4
181.6
2017 - 19
Quarterly average
2Q 2020 3Q 2020
RM bn
Business Loan Disbursements*
^ Special Relief Facility (SRF); All Economic Sector (AES); PENJANA
Tourism Financing (PTF); Automation and Digitalisation Facility (ADF);
Agrofood Facility (AF); Micro Enterprise Fund (MEF); Targeted Relief
and Recovery Facility (TRRF); High Tech Facility (HTF)
*Loans from banking system and development financial institutions (DFIs)
Source: Bank Negara Malaysia
SRF
RM10 bn
(100%)
Alleviate short term cash flow
AF
RM1.5 bn
(64%)
Increase food production
MEF
RM410 mn (+RM110 mn)
(49%)
Collateral-free financing for
micro-enterprises
AES
RM5 bn
(86%)
Enhance access to financing
PTF
RM1 bn
(2%)
Aid SMEs in the tourism sector
ADF
RM300 mn
(21%)
Incentivise automation &
digitalisation
Financing Facilities for SMEs^
(% of fund utilised as at 2 Oct 2020)
Total allocation: RM20.7 bn
TRRF
RM2 bn
(New)
Aid SMEs affected by
movement restrictions
HTF
RM500 mn
(New)
Aid SMEs in high-tech sectors
Ample space and flexibility to inject liquidity via monetary
operations to ensure effective financial intermediation
RM59 billion worth of total liquidity have been released to banking institutions since
March 2020 with total liquidity stable around RM146 bn as at end-Sep
Source: Bank Negara Malaysia
+RM46 bn
+RM9.3 bn
+RM3.2 bn
Liquidity released
Outright purchase of Government securities
(Orderly price adjustments with peak of 10-yr MGS
yield at 3.60% in March vs current at 2.59%)
Reverse repo operations up to 6 months
(Peak of RM15.7bn outstanding in March vs current at RM10.0 bn)
SRR reduction by 1.0% and flexibility for banks to use MGS
and MGII to fully meet SRR compliance
24
Banks’ assistance for affected SMEs and households
remain widely available
25
Recent Budget 2021 measures
provide further targeted
assistance to microenterprise
and B40 households…
B40
Documentation
is not required
(for BSH* and BPR*
recipients)
1 Refers to SME and individual loans, excluding
credit cards
2 Refers to number of individual borrowers
Source: Bank Negara Malaysia
3-month extended
loan moratorium
or
50% reduction in
monthly repayment
for 6 months
Non-affected and less affected
borrowers are resuming their
loan repayments
…with simplified application
process leveraging on Bantuan
Prihatin Nasional database
M40 Self-declaration
(for BPN recipients)
* BSH: Bantuan Sara Hidup;
BPR: Bantuan Prihatin Rakyat
All banks also continue to provide loan repayment assistance that
are tailored to the circumstances of borrowers
81% Repayment values1
end-Sep vs 1Q 2020
43%
Borrowers resuming
repayment2
as at Oct 2020
85%
Borrowers earning < RM5,000
i.e. including B40
of which
8 Misconceptions about Targeted Repayment Assistance (TRA)
26
Targeted assistance under BNM’s Fund for SMEs to further
support SMEs and micro entrepreneurs amid the pandemic
27
Targeted Relief and
Recovery Facility (TRRF)
Micro Enterprises
Facility (MEF)
Allocation of RM2 billion Increase available allocation
to RM200 mn
Provide relief and
support recovery for
services sector SMEs
affected by movement
restrictions
Improve access to
credit for micro
enterprises
Micro enterprises and the
self-employed, including gig
workers on digital platforms
and via iTEKAD programme
Allocation
Key
objectives
Targeted
beneficiaries
Encourage
entrepreneurship,
including for gig workers
and the self-employed
High Tech Facility
(HTF)
Allocation of RM500 mn
Sustain competitive
positioning in global
value chains
Affected SMEs in high-tech
sectors that fulfil National
Investment Aspirations
(NIAs)
Safeguard high-
skilled jobs
Preserve supply
chain ecosystem
SMEs in services sector*
that are adversely affected by
re-imposition of containment
measures since June 2020
Updated
*Except tourism and tourism-related services subsectors which are supported by the existing PENJANA Tourism Facility
In a nutshell…
Malaysia’s GDP growth improved significantly in the third quarter.
Going into 2021, growth will rebound supported by a pick up in global
demand and normalisation in domestic economic activities
Downside risks to growth remain, with the pace and strength of recovery
subject to developments surrounding the COVID-19 pandemic globally and
domestically.
Policy measures and assistance will continue to support both businesses and
households
While the targeted CMCO could weigh on growth, the impact will
be less severe
Updated
28
Updated
End of Presentation
29
Additional Information
30
Source: Department of Statistics Malaysia
GDP growth by component
Real GDP
(Annual change %)
Share1
% (2019)
2019 2020
3Q 2Q 3Q
Services 57.7 5.8 -16.2 -4.0
Manufacturing 22.3 3.6 -18.3 3.3
Mining and
Quarrying 7.1 -4.1 -20.0 -6.8
Agriculture 7.1 4.0 1.0 -0.7
Construction 4.7 -1.4 -44.5 -12.4
Real GDP 100.0 4.4 -17.1 -2.7
1 Numbers do not add up due to rounding and exclusion of import duties component
Malaysian GDP improved to -2.7% in 3Q 2020
31
Real GDP
(Annual change, %)
Share1,
% (2019)
2019 2020
3Q 2Q 3Q
Domestic demand
(excluding stocks) 94.0 3.5 -18.7 -3.3
Private Sector 75.6 5.5 -20.5 -3.6
Consumption 58.7 7.0 -18.5 -2.1
Investment 16.8 0.5 -26.4 -9.3
Public Sector 18.5 -4.8 -10.6 -1.6
Consumption 12.2 1.0 2.3 6.9
Investment 6.3 -14.6 -38.7 -18.6
Net exports of
goods and services 7.0 12.1 -38.6 21.9
Exports 63.7 -2.1 -21.7 -4.7
Imports 56.7 -3.5 -19.7 -7.8
Change in stocks
(RM billion) -1.0 -4.3 7.2 -7.9
Real GDP 100 4.4 -17.1 -2.7
Real GDP
(Q-o-Q SA) - 0.8 -16.5 18.2
Real GDP
(Contribution, ppt)
Share1,
% (2019)
2019 2020f
3Q 2Q 3Q
Services 57.7 3.3 -9.3 -2.3
Manufacturing 22.3 0.8 -4.2 0.7
Mining and
Quarrying 7.1 -0.3 -1.5 -0.4
Agriculture 7.1 0.3 0.1 -0.1
Construction 4.7 -0.1 -2.0 -0.6
Real GDP 100.0 4.4 -17.1 -2.7
Percentage point contribution to GDP growth by components
1 Numbers do not add up due to rounding and exclusion of import duties component
The improvement in growth was broad-based across
most sectors and components
32
Real GDP
(Contribution, ppt)
Share1,
% (2019)
2019 2020f
3Q 2Q 3Q
Domestic demand
(excluding stocks) 94.0 3.3 -17.7 -3.1
Private Sector 75.6 4.2 -15.9 -2.8
Consumption 58.7 4.1 -10.8 -1.2
Investment 16.8 0.1 -5.2 -1.6
Public Sector 18.5 -0.9 -1.7 -0.3
Consumption 12.2 0.1 0.3 0.8
Investment 6.3 -1.0 -2.0 -1.0
Net exports of
goods and services 7.0 0.7 -2.7 1.5
Exports 63.7 -1.4 -13.9 -2.9
Imports 56.7 -2.1 -11.3 -4.4
Change in stocks
(RM billion) -1.0 0.3 3.2 -1.0
Real GDP 100 4.4 -17.1 -2.7
Source: Department of Statistics, Malaysia
Higher goods surplus
• Improvement in external demand
and commodity prices
Larger services deficit
• Higher payment for transportation
services amid higher trade
activity
• Low travel receipts from
extended travel restrictions
Lower income deficit
• Lower receipts from Malaysian
investments abroad, offset by
• Transfers received as part of
settlement
Current account of the balance of payments registered a
surplus of RM26.1 billion or 7.1% of GDP
Breakdown of Current Account Balance (RM billion)
Source: Department of Statistics Malaysia
25.9
-12.5
-4.0 -1.9
41.5
-13.3
-9.2
7.1
-20
-10
0
10
20
30
40
50
Goods Services Primary
Income
Secondary
Income
2Q 2020 3Q 2020
33 s
63.7
112.2
126.4
54.3
15.6
11.3
Banks’ Liquid External Assets*
and External Debt-at-Risk**
RM billion
Government External Debt Breakdown
by Currency (as at end-3Q 2020)
RM billion
Corporate External Debt Breakdown
by Instrument (as at end-3Q 2020)
RM billion
Banks’ FX and USD Net Open
Positions as Percentage of Capital
% of total capital
Banks are resilient to face
potential external shocks …
* Consist of currency and deposit placements, and portfolio investments
** Consist of short-term financial institutions’ deposits, interbank borrowings and loans from unrelated counterparties
Source: Bank Negara Malaysia
24.4
190.9
Foreign currency-denominated
…while corporates’ external
debt is mainly subject to
prudential requirements
Government’s external debt
mainly in ringgit
118.5
56.1
Liquid external
assets
External
debt-at-risk
Total: RM383.5 billion Total: RM215.3 billion
Ringgit-denominated
• Not affected by ringgit
exchange rate fluctuations
Comprise medium- and long-term
loans and bonds and notes,
suggesting limited rollover risks
Malaysia’s external debt remains manageable
0
2
4
6
Ja
n
Fe
b
M
ar Ap
r
M
ay Ju
n
Ju
l
Au
g
Se
p
2020
FX USD
3.4
4.6
Bonds and
notes
Loans
Other debt liabilities
Intercompany
loans
Trade
credits
On
concessionary
and flexible
terms
Subject to
prudential
requirements
Backed by
export earnings
NR holdings of domestic
debt securities
34
Add. Info
High Tech Facility: Sustaining Malaysia’s competitive position,
preserve supply chain ecosystem and safeguard high-skilled jobs
SMEs in high-tech
manufacturing subsectors for
the HTF
Targeted sub-sectors:
a) Air and Spacecraft
b) Basic chemicals, fertilisers and synthetic rubber
c) Commercial vehicles*
d) Refined petroleum products
e) Biotech pharmaceuticals
f) Manufacture of general machineries
g) Optical instruments and photographic equipment
• High-skilled, high-
income employment
for locals
Create high-value
jobs
• High use of domestic
inputs
• Increase breadth and
depth of domestic
supply chain
Extend domestic
linkages
• Development of high-
productivity sectors
and new products and
services locally
Develop new and
existing clusters
• Development of
sophisticated products
and services
• High local R&D and
innovation intensity
Increase economic
complexity
1 2 3 4
These sectors/subsectors are identified based on the following:
1. Their fulfilment of the National Investment Aspirations (NIAs)
2. Have been adversely impacted by COVID-19
National Investment Aspirations
• Refers to targeted SME segments that are involved in global value chains or transitioning towards future mobility and green technology
35
Add. Info
Prestasi Ekonomi Suku Ketiga Tahun 2020
Slide Number 2
Slide Number 3
In the third quarter, Malaysia’s GDP growth rebounded significantly
Improvements registered across major sectors
All demand components recorded a significant recovery
Recovery in trade activity amid higher external demand
Slide Number 8
Recovery in private consumption remains broadly intact
Recent resurgence of COVID-19 cases in major economies �pose a downside risk to growth
Domestically, while targeted containment measures could weigh on growth, the impact will be less severe than in 2Q20
Slide Number 12
Going into 2021, Malaysia’s GDP is projected to grow within the range of 6.5% to 7.5%
Growth will be driven by a rebound in global demand
The pick-up in investment and production activities would also provide support to growth in 2021
Forward looking indicators suggest firm support for recovery in trade and business activity
Slide Number 17
Further support to growth from continued policy �measures, particularly for the vulnerable segments
Slide Number 19
Slide Number 20
Domestic bond market experienced continued non-resident portfolio inflows amid signs of recovery in global economic activity
Higher financing growth, especially to households
Banking system continues to support business financing, supplemented by various funds targeted for SMEs
Ample space and flexibility to inject liquidity via monetary operations to ensure effective financial intermediation
Banks’ assistance for affected SMEs and households remain widely available
Slide Number 26
Targeted assistance under BNM’s Fund for SMEs to further support SMEs and micro entrepreneurs amid the pandemic
Slide Number 28
End of Presentation
Additional Information
Slide Number 31
Slide Number 32
Slide Number 33
Malaysia’s external debt remains manageable
Slide Number 35
| Press Release |
06 Nov 2020 | Budget measures to assist individuals and SMEs affected by COVID-19 | https://www.bnm.gov.my/-/budget-measures-to-assist-individuals-and-smes-affected-by-covid-1 | null | null |
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Budget measures to assist individuals and SMEs affected by COVID-19
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Following the Budget 2021 speech by the Minister of Finance, Bank Negara Malaysia (BNM) would like to provide additional details on the announced measures to households and businesses affected by COVID-19.
These measures are part of continuous efforts by the financial industry to support economic recovery, while also safeguarding the livelihoods of Malaysians.
BNM recognises that the environment remains challenging for some. In assisting individuals and businesses whose incomes have been affected by the pandemic, BNM will provide additional financing facilities; enhancements to the Targeted Repayment Assistance; and several other initiatives.
A) BNM’s Fund for SMEs
BNM will establish additional financing facilities to provide relief and support recovery for SMEs:
Establishment of RM2 billion Targeted Relief and Recovery Facility (TRRF)
The RM2 billion facility is for eligible SMEs whose revenues have been affected by the recent enhanced and conditional movement control orders.
In addition, SMEs in targeted vulnerable sectors, namely personal services, food and beverage services, human health and social work, arts, entertainment and recreation subsectors, will also be eligible for the TRRF.
Offered at a concessionary rate of up to 3.5%, the TRRF will be available through participating financial institutions, with guarantee coverage by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and Credit Guarantee Corporation (CGC). The facility will be open for applications from 1 December 2020.
Visit BNM Covid-19 for more information on TRRF.
Establishment of RM500 million High Tech Facility (HTF)
The RM500 million facility is to support SMEs in high-tech sectors, for example fertilisers and synthetic rubber, basic chemicals, refined petroleum products, biotech pharmaceuticals, as well as air and spacecraft sub-sectors. As the high-tech sectors and innovation-driven firms are instrumental to realising new growth opportunities, the HTF aims to sustain Malaysia’s competitive positioning in global value chains and safeguard high-skilled jobs. Further details on the HTF will be announced on 1 December 2020.
RM110 million increase in allocation for the Micro Enterprises Facility (MEF)
The facility will be increased from RM300 million to RM410 million, with an available balance of RM200 million to support microenterprises including gig workers on digital platforms and the self-employed. The facility is for working capital and capital expenditure.
Visit BNM Covid-19 for more information on MEF.
B) Enhancements to the Targeted Repayment Assistance (TRA)
The banking industry has agreed to provide additional targeted repayment assistance for individuals and SME borrowers. These enhancements are an addition to those previously announced for those who have lost their jobs, and for individuals and SMEs whose incomes have been affected by the pandemic. Borrowers can also continue to approach their banks for tailored repayment assistance based on their specific financial circumstances as all banks continue to stand ready to provide support to borrowers that need assistance.
Additional assistance for B40 and microenterprise borrowers
Additional repayment assistance will be rolled out to borrowers in the following categories:
B40 individuals who are recipients of Bantuan Sara Hidup (BSH)/Bantuan Prihatin Rakyat (BPR); and
Microenterprises, as defined by SME Corp, for facilities with approved amounts of up to RM150,000.
Borrowers in these categories can request to either:
Defer monthly instalments for 3 months; or
Reduce monthly instalments by 50% for 6 months.
The assistance will be extended for facilities approved before 1 October 2020 which are not in arrears for more than 90 days at the time a borrower requests for repayment assistance. B40 and microenterprise borrowers who had previously received other forms of targeted repayment assistance and who wish to request for further assistance under the additional measures announced today can still do so by contacting their banks.
To request for this assistance, eligible borrowers will only need to confirm their repayment option with their bank. Additional documentation from borrowers is not required by banks to obtain repayment assistance.
However, for hire purchase loans and fixed rate Islamic financing, borrowers would need to sign new agreements in accordance with the Hire Purchase Act 1967 and Shariah requirements.
These additional repayment assistance will be available to eligible borrowers between 23 November 2020 and 30 June 2021. Borrowers may indicate the repayment assistance from 23 November 2020 through banks’ customer service hotlines, online banking, or by visiting bank branches. The banking industry will provide further details on these enhancements next week.
The repayment enhancement will be available for instalments due in December 2020 onwards, and will take effect at the next instalment following a borrower’s request and confirmation.
BNM has also been working with the banking industry to fine tune the delivery of targeted repayment assistance:
Simpler documentation for borrowers who are BPN M40 recipients
For M40 borrowers who are registered in the Bantuan Prihatin Nasional database, and whose household incomes have been reduced due to the pandemic, banks will accept requests from borrowers for a reduction in monthly instalments. This will be based on borrowers’ self-declaration of reduced income and/or their household to further expedite immediate relief. Banks will continue to engage with such borrowers subsequently to review their financial circumstances.
Dedicated Agensi Kaunseling dan Pengurusan Kredit (AKPK) Micro Enterprise Help Desk
In addition to contacting banks, an additional avenue will be made available for microenterprises to request for repayment assistance through AKPK’s dedicated micro business helpdesk starting 9 November 2020 at www.akpk.org.my/microhelpdesk. The virtual helpdesk provides free financial advice and facilitates applications for repayment assistance.
Assessment of a borrower’s overall household income
For individual borrowers requesting to reduce their instalments, practices across banks have been streamlined to take into account not only the borrower’s own income, but also how the income of his or her spouse has been affected by the pandemic. This is already practised by most banks and has now been adopted by all banks to allow for more holistic assessments of a borrower’s financial situation.
These new enhancements build on existing efforts adopted by banks to better accommodate the exceptional challenges faced by borrowers.
BNM would like to reassure borrowers facing financial difficulties due to the pandemic that repayment assistance remains available to individuals across all income groups and SMEs of all sizes that need assistance. For many borrowers, assistance that is tailored to their specific circumstances will be more helpful to support their current and future needs.
Despite ongoing measures to contain COVID-19, the resumption of economic activities has enabled many borrowers to resume paying down their debt. To date, around 85% of borrowers have started making their monthly instalments.
For borrowers who can afford to do so, this is in their best interest as reducing or deferring instalments will lead to higher overall debt, due to the continued accrual of interest which borrowers eventually have to bear in the future.
At the same time, borrowers who still face financial challenges will continue to be supported through targeted repayment assistance which allows them to make informed decisions based on their own financial management needs and goals.
BNM urges borrowers who face difficulties meeting their loan repayments to contact their banks, AKPK or BNMTELELINK to understand the options available to help them manage their debt. Targeted repayment assistance will continue to be available for affected borrowers throughout 2020 and 2021.
Borrowers facing difficulties with their banks can lodge a complaint with BNMTELELINK at bnm.my/RAsurvey. Borrowers may also visit www.bnm.gov.my/tra to obtain more information on targeted repayment assistance.
C) Other Initiatives
In addition, the Government, BNM and the financial industry are collaborating on several initiatives to further assist individuals and SMEs:
Expansion of iTEKAD programme
The iTEKAD programme, which was launched in May 2020, combines social finance instruments such as zakat, sadaqah and waqf with the provision of microfinancing, structured training and mentorship. These instruments will empower micro-entrepreneurs from the B40 segment to generate sustainable income and achieve financial resilience.
In tandem with the increase in allocation to MEF, the iTEKAD programme will be expanded with the participation of more Islamic banks. This will be done in collaboration with a wider network of states and implementation partners, which will be participating in the iTEKAD programme in 2021.
Perlindungan Tenang Protection for B40
Financial assistance will be provided by the Government for the B40 segment in the form of vouchers to purchase insurance and takaful coverage under the Perlindungan Tenang scheme from licensed insurers and takaful operators. The financial assistance of RM50 voucher will be given to eligible B40 recipients to help them purchase Perlindungan Tenang products starting 1 April 2021.
Perlindungan Tenang products are products approved by BNM to meet the needs of under-served market segments. The products must satisfy stringent criteria on affordability and customer value, with minimal exclusions to ease claims and ensure meaningful protections, particularly for lower income groups. The products include protection for life takaful and personal accident.
For more information on Perlindungan Tenang products and to obtain a list of participating providers, the public can refer to https://www.mycoverage.my/web/mc/tenang.
Further details of all of these measures will be issued by the respective banking and insurance associations soon. Members of the public can contact BNMTELELINK at bnmtelelink@bnm.gov.my for further information.
Bank Negara Malaysia
6 November 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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06 Nov 2020 | International Reserves of Bank Negara Malaysia as at 30 October 2020 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-30-october-2020 | null | null |
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The international reserves of Bank Negara Malaysia amounted to USD104.6 billion as at 30 October 2020. The reserves position is sufficient to finance 8.4 months of retained imports and is 1.0 times total short-term external debt. Related Assets
BNM Statement of Assets & Liabilities - 30 October 2020
Bank Negara Malaysia
6 November 2020
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03 Nov 2020 | Monetary Policy Statement | https://www.bnm.gov.my/-/monetary-policy-statement-03112020 | null | null |
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Monetary Policy Statement
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At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 1.75 percent.
The global economy continues to recover, led by improvements in manufacturing and export activity. Latest indicators show that economic activity picked up in most advanced and regional economies, with a more pronounced recovery momentum in PR China. However, recent resurgences in COVID-19 cases have caused some major economies to re-introduce containment measures, although generally less restrictive than earlier measures. This suggests that the global economic recovery will likely remain uneven in the near-term. Financial conditions have improved, although risk aversion remains elevated. The overall outlook remains subject to downside risks, primarily due to the risk of further resurgence of COVID-19 infections which could lead to weaker business, employment and income conditions.
For Malaysia, the latest indicators point towards significant improvement in economic activity in the third quarter. The introduction of targeted measures to contain COVID-19 in several states could affect the momentum of the recovery in the fourth quarter. Nonetheless, growth for the year 2020 is expected to be within the earlier forecasted range. For 2021, economic activity is projected to improve further. This will be underpinned by the recovery in global demand, turnaround in public and private sector expenditure amid continued support from policy measures, and higher production from existing and new facilities. Nevertheless, the pace of recovery will be uneven across sectors, with economic activity in some industries remaining below pre-pandemic levels, and a slower improvement in the labour market. Downside risks to the outlook remain, stemming mainly from ongoing uncertainties surrounding the pandemic globally and domestically.
In line with earlier assessments, headline inflation is likely to average negative this year given the substantially lower global oil prices. For 2021, headline inflation is projected to average higher. The outlook, however, will continue to be significantly affected by global oil and commodity prices. Underlying inflation is expected to remain subdued in 2021 amid continued spare capacity in the economy.
The MPC considers the stance of monetary policy to be appropriate and accommodative. The cumulative 125 basis points reduction in the OPR this year will continue to provide stimulus to the economy. The MPC will continue to assess evolving conditions and their implications on the overall outlook for inflation and domestic growth. The Bank remains committed to utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery.
The meeting also approved the schedule of MPC meetings for 2021. In accordance with the Central Bank of Malaysia Act 2009, the MPC will convene six times during the year. The meetings will be held over two days, with the Monetary Policy Statement released at 3 p.m. on the second day of the MPC meeting.
Schedule of Monetary Policy Committee Meetings for 2021
MPC Meeting No
Dates
1st
19 and 20 January 2021 (Tuesday and Wednesday)
2nd
3 and 4 March 2021 (Wednesday and Thursday)
3rd
5 and 6 May 2021 (Wednesday and Thursday)
4th
7 and 8 July 2021 (Wednesday and Thursday)
5th
8 and 9 September 2021 (Wednesday and Thursday)
6th
2 and 3 November 2021 (Tuesday and Wednesday)
Bank Negara Malaysia
3 November 2020
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02 Nov 2020 | Improving the Financial Health of Gig Workers with Innovative Financial Solutions | https://www.bnm.gov.my/-/improving-the-financial-health-of-gig-workers-with-innovative-financial-solutions | null | null |
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Improving the Financial Health of Gig Workers with Innovative Financial Solutions
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In partnership with APEC Malaysia 2020, Bank Negara Malaysia (BNM), the Malaysia Digital Economy Corporation (MDEC) and the United Nations Capital Development Fund (UNCDF) launched the Financial Innovation Gig Economy Challenge in March 2020 – an initiative that calls for the submission of innovative solutions to improve the financial health of gig economy workers. The Financial Innovation Gig Economy Challenge was funded by MetLife Foundation through the i3 (Innovate, Implement and Impact) Program.
Based on findings from the World Bank, Malaysia has a growing gig economy with 26 percent of its workforce being self-employed or operating independently. Much of this is driven by the on-demand gig economy, where a substantial portion of work is found through ride-hailing and food-delivery services. The gig economy is characterised by flexible working hours and greater employee autonomy. However, the short-term and non-binding nature of the relationship between the platform operators and its employees can be challenging for gig workers.
The Challenge is in line with Malaysia’s focus under the APEC Finance Ministers’ Process on mitigation and recovery measures in light of the COVID-19 pandemic. It seeks to leverage digitalisation to support business viability and promote sustainable economic recovery. The Financial Innovation Gig Economy Challenge received more than 100 submissions globally. From that, 10 teams were chosen to participate in an intensive, eight-week bootcamp and innovation programme, with Malaysia serving as a testbed to refine these emerging ideas to improve the financial health of gig workers in the Asia Pacific region.
Over the course of the programme, the companies were accorded various support to enrich their solutions, including insights on the gig economy in Malaysia, human-centred design tools, access to industry players and mentoring from respective subject matter experts. During the final round of pitches, an esteemed panel of judges selected the top three solutions that would receive further support from UNCDF to test and scale their solutions with gig workers in Malaysia.
The three solutions were PAY:WATCH, Versa and GetHyred, all of which were selected based on the potential to improve employability and financial health among gig workers, through innovative means such as app-based training modules, income smoothing solutions and accessible savings instruments.
As finalists, PAY:WATCH, Versa and GetHyred were given the opportunity to showcase their promising solutions at the APEC Virtual Finance Ministers’ Meeting (AVFMM) on 25 September 2020. A brief description of the winning solutions is as follows:
PAY:WATCH partners with employers and banks to provide workers instant access to earned wages, in real time, before pay day. By providing gig workers with access to low-cost financing from major reputable banks, PAY:WATCH minimises the likelihood of gig workers having to turn to informal lenders.
Versa is a digital cash management platform that provides returns on par with Fixed Deposits, but with similar liquidity as a Savings Account. This helps gig workers get the best out of their idle cash responsibly, while meeting liquidity needs.
GetHyred is launching a gig marketplace coined as “Zasss” to match young gig workers to income-generating opportunities. Zasss complements a myriad of skill-building platforms established by GetHyred that encourages young gig workers to develop a variety of skills and expertise.
APEC 2020 Malaysia
Bank Negara Malaysia
Malaysia Digital Economy Corporation
United Nations Capital Development Fund
2 November 2020
About APEC Malaysia 2020
The Asia-Pacific Economic Cooperation (APEC), is a regional economic forum of 21 members, established in 1989. Its formation leverages on the growing interdependence of the Asia- Pacific, with the primary goal of promoting free trade and sustainable development in the Pacific Rim economies.
Malaysia is one of the founding members of APEC in 1989, alongside 11 other economies, namely Australia, Brunei Darussalam, Canada, Indonesia, Japan, the Republic of Korea, New Zealand, the Philippines, Singapore, Thailand and the United States. China; Hong Kong, China; and Chinese Taipei joined in 1991. Mexico and Papua New Guinea followed in 1993. Chile acceded in 1994. And in 1998, Peru; Russia; and Vietnam joined, taking the full membership to 21.
Malaysia’s hosting of APEC 2020 is themed ‘Optimising Human Potential towards a Resilient Future of Shared Prosperity: Pivot. Prioritise. Progress’. At the national level, the three priority areas are improving the narrative of trade and investment;inclusive economic participation through the digital economy and technology; anddriving innovative sustainability.
About Bank Negara Malaysia (BNM)
Bank Negara Malaysia (BNM) was established in 1959, under the Central Bank of Malaysia Act 1958 (Revised in 2009). BNM is principally entrusted to uphold monetary and financial stability and maintain oversight over the payments system in the country. BNM has overseen the development of a comprehensive, efficient and resilient financial sector, contributing to economic growth and development.
As part of its mandate, BNM is committed to evolving well-designed regulations for innovation in financial services, while ensuring that the associated risks are well-managed. This includes a focus on uplifting financial inclusion among consumers, including the gig economy. Further information on Bank Negara Malaysia and its developmental efforts may be found at https://www.bnm.gov.my/
About Malaysia Digital Economy Corporation (MDEC)
Malaysia Digital Economy Corporation (MDEC) is a government agency under the purview of the Ministry of Communications and Multimedia Malaysia entrusted to lead Malaysia's digital economy forward. Incorporated in 1996 to oversee the development of the MSC Malaysia initiative, MDEC's primary mandate today is to accelerate the growth of digitally-skilled Malaysians, digitally-powered businesses and digital investments in Malaysia. MDEC is focused on creating inclusive, high-quality growth through the nationwide digitalisation initiatives that are in line with the Government’s Shared Prosperity Vision 2030 and firmly establishing Malaysia as the Heart of Digital ASEAN.
#LetsBuildTogether #DigitalMalaysiaForward
To find out more about MDEC’s Digital Economy initiatives, please visit us at https://mdec.my/ or follow us on:
Facebook: https://www.facebook.com/MyMDEC/
Twitter: @mymdec
About MetLife Foundation
At MetLife Foundation, we are committed to expanding opportunities for low- and moderate-income people around the world. We partner with nonprofit organizations and social enterprises to create financial health solutions and build stronger communities, while engaging MetLife employee volunteers to help drive impact. MetLife Foundation was established in 1976 to continue MetLife’s long tradition of corporate contributions and community involvement. From its founding through the end of 2019, MetLife Foundation provided more than $860 million in grants and $85 million in program-related investments to make a positive impact in the communities where MetLife operates. Our financial health work has reached more than 13.4 million low- and moderate-income individuals in 42 countries. To learn more about MetLife Foundation, visit metlife.org.
Metlife Foundation’s i3 Program (Innovate, Implement, and Impact) works in Bangladesh, China, Malaysia and Vietnam to uncover deep insights into low- and moderate-income (LMI) people’s needs, aspirations and behaviours in order to build and deliver financial services for the mass market. LMI people have limited options that could drive usage of formal financial services and so struggle to manage their limited resources and cash flows. To learn more about the i3 Program, visit https://www.i3program.org
About UNCDF
The UN Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 47 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through two channels: financial inclusion that expands the opportunities for individuals, households, and small businesses to participate in the local economy, providing them with the tools they need to climb out of poverty and manage their financial lives; and by showing how localised investments—through fiscal decentralisation, innovative municipal finance, and structured project finance—can drive public and private funding that underpins local economic expansion and sustainable development. By strengthening how finance works for poor people at the household, small enterprise, and local infrastructure levels, UNCDF contributes to SDG 1 on eradicating poverty and SDG 17 on the means of implementation. By identifying those market segments where innovative financing models can have transformational impact in helping to reach the last mile and address exclusion and inequalities of access, UNCDF contributes to a number of different SDGs. For more information visit https://www.uncdf.org/
Bank Negara Malaysia
2 November 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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30 Oct 2020 | Detailed Disclosure of International Reserves as at end-September 2020 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-september-2020 | null | null |
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Detailed Disclosure of International Reserves as at end-September 2020
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In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD104,981 million, while other foreign currency assets amounted to USD1,172.6 million as at end-September 2020. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and the maturity of foreign currency Bank Negara Interbank Bills, amounted to USD8,905 million. The short forward positions amounted to USD7,208.4 million while long forward positions amounted to USD1,140 million as at end-September 2020, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans. Projected foreign currency inflows amount to USD2,447.8 million in the next 12 months.As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD277.1 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-September 2020, Malaysia’s international reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
30 October 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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22 Oct 2020 | International Reserves of Bank Negara Malaysia as at 15 October 2020 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-15-october-2020 | null | null |
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International Reserves of Bank Negara Malaysia as at 15 October 2020
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International Reserves of Bank Negara Malaysia as at 15 October 2020
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The international reserves of Bank Negara Malaysia amounted to USD105.2 billion as at 15 October 2020. The reserves position is sufficient to finance 8.4 months of retained imports and is 1.1 times total short-term external debt. Related Assets
BNM Statement of Asset & Liabilities - 15 October 2020
Bank Negara Malaysia
22 October 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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19 Oct 2020 | Targeted Repayment Assistance better serves borrowers' needs | https://www.bnm.gov.my/-/targeted-repayment-assistance-better-serves-borrowers-needs | null | null |
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Targeted Repayment Assistance better serves borrowers' needs
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Targeted Repayment Assistance better serves borrowers' needs
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19 Oct 2020
Bank Negara Malaysia (BNM) wishes to assure borrowers that repayment assistance will remain available for borrowers whose incomes have been affected by the pandemic. Depending on their circumstances, borrowers facing challenges have generally requested for reductions in monthly repayment instalments or an extension of the moratorium. Borrowers who declined repayment assistance for now would still be able to apply for targeted assistance throughout 2020 and into 2021 if their financial circumstances change in the future.
The scale of targeted repayment assistance is unprecedented in Malaysia’s banking history. Assistance continues to be offered to borrowers across a range of income groups, with special consideration given to households from the B40 category, micro businesses as well as borrowers affected by movement restrictions.
A targeted approach is in the interest of borrowers, savers and the economy
A targeted approach to repayment assistance extends relief measures more sustainably, while lending strength to the economic recovery.
Many borrowers are now able and have started to resume repayments. For this group, resuming repayments would be in their interest as this would reduce the overall cost of borrowings. If their financial circumstances change down the road, targeted repayment assistance would still be available.
Borrowers who require assistance at this time have the opportunity to customise their repayment plans based on what they can afford. If their circumstances are further challenged in the future, they would have more recent repayment records to facilitate further assistance by banks.
The financial resources of the banking system can be prioritised to help those most affected by COVID-19. As more borrowers who can afford to repay do so, more assistance can be made available to borrowers that need it.
Banks have been entrusted by the public to manage their savings. The public, as depositors, expect that banks discharge their fiduciary obligation by managing these funds prudently and using them to provide loans to the economy for productive purposes. In addition, banks source capital from institutional funds, such as those managing the pensions, retirement funds and investments of Malaysians. It is therefore important to preserve a healthy credit culture where borrowers who can afford to repay do so.
What to expect when applying for repayment assistance
BNM urges affected borrowers to come forward to apply for repayment assistance with their banks through the various channels available.
Banks are required to respond to applications for targeted repayment assistance within 5 days for individual borrowers and within 14 days for SME borrowers. Borrowers who do not receive a response from their banks within these timeframes should contact BNMTELELINK (bnm.my/RAsurvey).
Borrowers affected by any Conditional Movement Control Order (CMCO) or Enhanced Movement Control Order (EMCO) can expect a prompt and seamless process even as banks in affected areas continue to operate under appropriate SOPs. Those unable to have face-to-face engagements or furnish documents due to movement restrictions can contact their banks via website, phone or email.
AKPK also stands ready to provide the necessary advice and assistance to both individual and SME borrowers, including options for debt restructuring. For borrowers that were already facing financial difficulties prior to the pandemic, a moratorium extension is not a sustainable solution. In these circumstances, borrowers can also approach AKPK for assistance.
Targeted repayment assistance puts borrowers on a sustainable recovery path
The banking industry has been actively reaching out to borrowers in various ways, including through TV, radio, news outlets, social media and repayment assistance campaigns across the country. Banks have also reached out directly to borrowers assessed to require repayment assistance through calls, emails and SMS.
More than 640,000 applications for repayment assistance have been received, with an approval rate of around 98%. The types of packages offered by banks reflect the financial needs and circumstances of the borrowers.
Of those approved:
40% were granted an extension of the moratorium. These consisted mainly of individuals who have been recently made unemployed, as well as businesses in sectors that may still be experiencing significant operating constraints caused by the pandemic.
60% received a reduction in instalments. Borrowers who have requested a reduction in instalments includes those in the B40 group. These instalment reductions put individuals and SMEs on a path to start paying down their loans, at levels which they are comfortable with.
Among individuals who requested repayment assistance to date, about 50% have a monthly income of RM5,000 or less. Meanwhile, 28% are those with a monthly income between RM5,000 to RM10,000. Borrowers in other segments who need assistance are also being supported, including those who earn variable incomes, and those employed in sectors that have been hardest hit such as the tourism sector.
Additional information
Applications for repayment assistance at any time before 30 June 2021 will also not appear on a borrower’s CCRIS records.
There are no processing fees/charges associated with applications for repayment assistance for individual and SME borrowers.
To obtain targeted assistance, borrowers need to apply directly to their respective banks.
Visit https://www.bnm.gov.my/tra for more information on whether you need targeted assistance and qualifying assistance.
Bank Negara Malaysia
19 October 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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07 Oct 2020 | International Reserves of Bank Negara Malaysia as at 30 September 2020 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-30-september-2020 | null | null |
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International Reserves of Bank Negara Malaysia as at 30 September 2020
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7 Oct 2020
The international reserves of Bank Negara Malaysia amounted to USD105.0 billion as at 30 September 2020. The reserves level has taken into account the quarterly foreign exchange revaluation changes. The reserves position is sufficient to finance 8.4 months of retained imports and is 1.1 times total short-term external debt. Related Assets
BNM Statement of Asset & Liabilities - 30 September 2020
Bank Negara Malaysia
7 October 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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06 Oct 2020 | Launch of the Inaugural Financial Literacy Month by Financial Education Network | https://www.bnm.gov.my/-/launch-of-the-inaugural-financial-literacy-month-by-financial-education-network | null | null |
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Launch of the Inaugural Financial Literacy Month by Financial Education Network
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6 Oct 2020
Financial Education Network (FEN) today launched the Financial Literacy Month
(FLM 2020) with the theme “Empowering Financial Freedom”. During the FLM 2020, various initiatives and programmes by FEN members and partners will be conducted as part of on-going efforts to raise the level of financial literacy among Malaysians.
In line with the National Strategy for Financial Literacy 2019 – 2023, the objective of FLM 2020 is to inform, educate and support Malaysians in practising sound financial management. This includes equipping individuals with the necessary tools and knowledge to achieve their financial goals, manage their debts and protect themselves from financial scams.
Based on the Financial Capability and Inclusion Demand Side Survey undertaken in 2018, 1 in 3 Malaysians have low confidence in their financial knowledge and planning, 52% of Malaysians do not have sufficient emergency funds set aside to cope with unexpected events and almost half of Malaysians are not confident of having enough savings for retirement. With Malaysians now facing considerable financial challenges posed by the COVID-19 pandemic, FLM 2020 comes at an opportune time as it offers more than 40 programmes aimed at empowering individuals to make informed financial decisions with the right tools and knowledge. These programmes include introduction to self-help financial tools, financial education talks, webinars, quizzes, competitions, roundtable discussions and virtual exhibitions. The programmes are open to members of the public throughout October 2020.
For more information and updates regarding FLM 2020 and FEN, please visit https://www.fenetwork.my.
ISSUED BY BANK NEGARA MALAYSIA AND SECURITIES COMMISSION MALAYSIA, CO-CHAIRS OF THE FINANCIAL EDUCATION NETWORK
About Financial Education Network (FEN)
Established in November 2016, the FEN serves as an inter-agency platform comprising institutions and agencies to increase the impact of financial education initiatives and identify new opportunities to elevate financial literacy among Malaysians through greater alignment, closer collaboration and a strong focus on impact assessments. Its members include the Ministry of Education Malaysia, Ministry of Higher Education, Bank Negara Malaysia, Securities Commission Malaysia, Employees Provident Fund, Agensi Kaunseling dan Pengurusan Kredit, Perbadanan Insurans Deposit Malaysia and Permodalan Nasional Berhad.
Bank Negara Malaysia
6 October 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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30 Sep 2020 | Transition to targeted repayment assistance | https://www.bnm.gov.my/-/transition-to-targeted-repayment-assistance | null | null |
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Transition to targeted repayment assistance
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Transition to targeted repayment assistance
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30 Sep 2020
Bank Negara Malaysia (BNM) wishes to assure that the banking sector remains committed to help households and businesses who need assistance after the automatic moratorium ends on 30 September. To this end, banks have introduced a range of packages for affected borrowers. These include targeted extension of the moratorium, as well as repayment flexibilities to help borrowers based on their specific financial situation. This targeted approach ensures that more resources are available to assist those who are vulnerable. It also enables the banking sector to better support the broader economy through continued lending.
The banking industry has been actively reaching out to borrowers in various ways. BNM, together with the banking industry, conducted more than 150 engagement sessions. These include repayment assistance campaigns across the country and direct engagements with various stakeholder groups, including SME associations. To ease the application process, banks have simplified steps, enabled online applications and extended the operating hours of branches (including weekends).
In addition to these efforts, individual banks have directly engaged over 2 million borrowers through calls, emails and SMS to offer repayment assistance. To date, about 500,000 applications for repayment assistance have been received, with an approval rate of 98%. There also continues to be a steady increase in borrowers choosing to resume payment of their monthly instalments.
For applications that are still being processed, banks have provided their commitment to inform borrowers of the application results as soon as possible. BNM will closely monitor banks’ practices in this regard. Borrowers facing difficulties with their banks can contact BNMTELELINK at bnmtelelink@bnm.gov.my.
Borrowers who can afford to resume monthly repayments should do so, as this would reduce their overall debt and borrowing costs. Although broader economic conditions are improving, some borrowers may still face repayment challenges if their circumstances change in the coming months. If this happens, borrowers can still engage their banks to discuss alternative repayment arrangements. During this period, banks will continue to offer various forms of repayment assistance to borrowers. Applications for repayment assistance at any time before 30 June 2021 will also not appear on a borrower’s CCRIS records. Borrowers may also seek guidance and explore alternative options for assistance with AKPK.
Bank Negara Malaysia
30 September 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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30 Sep 2020 | Monetary and Financial Developments in August 2020 | https://www.bnm.gov.my/-/monetary-and-financial-developments-in-august-2020 | https://www.bnm.gov.my/documents/20124/1196416/i_en.pdf | null |
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Monetary and Financial Developments in August 2020
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Monetary and Financial Developments in August 2020
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30 Sep 2020
This document is in Portable Document File (PDF) format.
In order to read this document, you will need Adobe™ Acrobat™ Reader™, which is downloadable for free from the Adobe™ Web Site. [Go there]
If you already have the software, read the press release. [PDF, 225KB]
See also: Monthly Highlights and Statistics August 2020
Bank Negara Malaysia
30 September 2020
© Bank Negara Malaysia, 2020. All rights reserved.
|
Monthly Highlights May 2023
Monthly Highlights
Headline inflation declined further to 2.8% in May
May 2023
Contribution to Inflation
ppt. contribution %, yoy
1 Core inflation is computed by excluding price-volatile and price-administered items.
Source: Department of Statistics, Malaysia & Bank Negara Malaysia estimates
• Headline inflation moderated to 2.8% (April 2023:
3.3%). This decline was largely due to non-core
CPI components, particularly lower inflation for
fuel (-0.2 percentage points, ppt) and fresh food
(-0.1ppt).
• Core inflation also declined slightly to 3.5% (April
2023: 3.6%) amid lower inflation for
communication services.
3.3
2.8
3.6 3.5
0.00
2.00
4.00
0.0
2.0
4.0
J
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2
F
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-2
2
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2
A
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2
M
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-2
2
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-2
2
J
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2
2
A
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-2
2
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-2
2
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2
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-2
2
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-2
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-2
3
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-2
3
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2
3
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2
3
M
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-2
3
Food & non-alcohol (29.5%) Housing & utilities (23.8%)
Transport (14.6%) Others (32.1%)
Headline inflation (RHS) Core inflation¹ (RHS)
1.6
5.1
4.6
0
1
2
3
4
5
6
7
May-22 Sep-22 Jan-23 May-23
Business loans
Household loans
Corporate bonds
Annual growth (%)
Credit to the Private Non-Financial Sector1,2
1
Growth in credit to the private non-financial sector improved in May
1 Comprises loans to households and non-financial corporations from the
banking system and development financial institutions (DFIs), and corporate
bonds issued by non-financial corporations (including short-term papers).
2 Starting with the publication of December 2022 Monthly Highlights and
Statistics (MHS), this series was introduced to enhance the quality of
financing data. This new data series is available in the MHS Table 2.18.
Source: Bank Negara Malaysia
Contribution to growth (ppt)
• Credit to the private non-financial sector expanded
by 4.0% as at end-May (April 2023: 3.7%), driven
mainly by higher growth in credit to businesses
(2.8%; April 2023: 2.5%).
• Outstanding corporate bonds grew by 4.6% (April
2023: 4.4%), while outstanding business loans
expanded by 1.6% (April 2023: 1.0%). The higher
business loan growth reflected improvement in
loans for both working capital and investments to
SMEs and non-SMEs.
• In the household segment, outstanding loan
growth was sustained at 5.1% (April 2023: 5.0%),
supported by higher growth across most loan
purposes. Of note, household loan growth
continued to be driven by loans for the purchase of
houses and cars, which grew by 7.0% and 8.4%,
respectively (April 2023: 6.8% and 8.0%).
2.7 2.6 2.5 2.6
0.7 0.7 0.3 0.5
1.1 0.9
0.9 1.0
4.5 4.2
3.7 4.0
Feb-23 Mar-23 Apr-23 May-23
Corporate Bonds
Business Loans
Household Loans
Credit to the Private Non-
Financial Sector
Index of wholesale and retail trade growth moderated in April
Source: Department of Statistics, Malaysia
• The Index of Wholesale and Retail Trade
(IOWRT) expanded more moderately by 4.7% in
April 2023 (March 2023: 9.4%). The lower growth
was due mainly to the decline in the motor vehicle
segment.
• However, the retail segment continued to record a
double-digit growth of 10.0% (March 2023:
13.8%), supported by sales in non-specialised and
other specialised stores1.
• On a month-on-month seasonally adjusted basis,
the index increased at a faster pace of 6.5%
(March 2023: -0.9%).
1 Other goods in specialised stores includes clothing, footwear,
pharmaceuticals, cosmetics, watches, jewellery and optical goods.
10.6
9.4
4.7
-2
3
8
13
18
23
28
33
Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23
ppt, %yoy
Motor vehicles Retail Wholesale
Index of Wholesale and Retail Trade
Monthly Highlights
2
May 2023
Domestic financial markets were largely affected by external factors
Financial Market Performance in May 2023
-18.0
-0.5
-1.1
-3.0
-2.0
-3.4
10-year MGS
(bps, mom)
Equity
(%, mom)
Ringgit
(%, mom)
-20 -15 -10 -5 0
May-23 Apr-23
Note: The exchange rate data is the noon-rate in the Kuala Lumpur Interbank Foreign Exchange Market
1Regional countries comprise Singapore, Thailand, Philippines, Indonesia, and Korea
Source: Bank Negara Malaysia, Bursa Malaysia
• Global investors maintained a risk-off approach
throughout May, as concerns over the impact of the
US debt ceiling crisis and the weaker-than-
expected rebound in China’s economy weighed on
global financial markets.
• As a result, the ringgit depreciated against the US
dollar by 3.4% (regional1 average: -1.2%). Similarly,
the FBM KLCI declined by 2.0% (regional1 average:
-1.3%).
• Nonetheless, the 10-year MGS yields decreased
slightly by 3 basis points, supported by non-resident
inflows into the domestic bond market.
Banks maintained strong liquidity and funding positions to support intermediation
• Banks continued to record healthy liquidity buffers
with the aggregate Liquidity Coverage Ratio at
151.2% (April 2023: 154.3%).
• The aggregate loan-to-fund ratio remained stable at
81.8% (April 2023: 82.1%).
Source: Bank Negara Malaysia
Banking System Liquidity and Funding Ratios
81.8
151.2
0
40
80
120
160
70
75
80
85
90
95
M
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2
2
J
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2
2
J
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2
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2
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2
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3
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2
3
M
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2
3
A
p
r
2
3
M
a
y
2
3
% %
Liquidity Coverage Ratio (RHS)
Loan-to-Fund Ratio
Asset quality in the banking system remained intact
Banking System Asset Quality
Source: Bank Negara Malaysia
• Overall gross and net impaired loans ratios
remained broadly unchanged at 1.80% (April
2023: 1.78%) and 1.10% (April 2023: 1.10%),
respectively.
• Loan loss coverage ratio (including regulatory
reserves) remained at a prudent level of 114.1%
of impaired loans, with total provisions accounting
for 1.7% of total loans.
%
1.8
1.1
1.7
0.5
1.0
1.5
2.0
M
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2
2
J
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2
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2
3
Gross Impaired Loans Ratio
Total Provisions to Total Loans Ratio
Net Impaired Loans Ratio
April 2023 Monthly Highlights
Slide 1
Slide 2
| Press Release |
30 Sep 2020 | MyCC’s Final Decision against PIAM and its 22 Members | https://www.bnm.gov.my/-/mycc-s-final-decision-against-piam-and-its-22-members | null | null |
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MyCC’s Final Decision against PIAM and its 22 Members
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30 Sep 2020
This statement is in response to the final decision dated 14 September 2020 published by the Malaysia Competition Commission (MyCC) and addressed to Persatuan Insurans Am Malaysia (PIAM) and its 22 members.
In its decision, MyCC concluded that PIAM and its 22 members have infringed Section 4 of the Competition Act 2010 in that the parties had entered into an agreement on the application of trade discounts on parts prices and hourly labour rates for motor vehicle repairs by workshops under the PIAM Approved Repairers Scheme (PARS). Besides imposing financial penalties, MyCC also directed the parties to cease and desist from implementing the agreed parts trade discount and the hourly labour rate, and for such discounts and rates to be determined independently by individual insurers and workshops.
Bank Negara Malaysia (BNM) regrets MyCC’s decision as the arrangement was put in place through the facilitation and direction of BNM to the general insurers to address disputes between workshops and general insurance companies that had adversely impacted consumers. This was due to protracted delays and disagreements over insurance claims payments for motor repairs. The resulting arrangement was implemented after discussions between PIAM and the Federation of Automobile Workshops Owners Association of Malaysia (FAWOAM). As a result of BNM’s regulatory intervention, delays in settlement of claims arising from motor repairs had reduced significantly and policyholders were better served by a more efficient claims settlement process. For example, the average turnaround time from date of notification of an accident to the completion of repair works had reduced by 55% since 2010.
The decision by MyCC may unravel the positive outcomes from past and ongoing initiatives by BNM and the industry to curb fraud and improve efficiency in the motor claims process. This in turn will have wider ramifications for access to and the cost of motor insurance for Malaysian consumers.
In light of the decision by MyCC, BNM will follow due process and review its options to safeguard the interests of the motoring public. If any policyholders experience undue delays in the repair and release of your vehicles, please contact your respective insurers for advice. For general enquiries and complaints, policyholders can also contact BNMTELELINK at 1-300-88-5465 or bnmtelelink@bnm.gov.my.
Bank Negara Malaysia
30 September 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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30 Sep 2020 | Detailed Disclosure of International Reserves as at end-August 2020 | https://www.bnm.gov.my/-/detailed-disclosure-of-international-reserves-as-at-end-august-2020 | null | null |
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Detailed Disclosure of International Reserves as at end-August 2020
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Detailed Disclosure of International Reserves as at end-August 2020
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30 Sep 2020
Explanatory Notes
In accordance with the IMF SDDS format, the detailed breakdown of international reserves provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal Government and Bank Negara Malaysia over the next 12-month period.
The detailed breakdown of international reserves based on the SDDS format is shown in Tables I, II, III and IV. As shown in Table I, official reserve assets amounted to USD104,417.9 million, while other foreign currency assets amounted to USD1,611.5 million as at end-August 2020. As shown in Table II, for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and repayment arising from the maturity of foreign currency Bank Negara Interbank Bills, amounted to USD8,725.1 million. The short forward positions amounted to USD8,377 million while long forward positions amounted to USD1,580 million as at end-August 2020, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans. Projected foreign currency inflows amount to USD2,312.4 million in the next 12 months. As shown in Table III, the only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to USD277.1 million. There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. Bank Negara Malaysia also does not engage in foreign currency options vis-à-vis ringgit.
Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-August 2020, Malaysia’s international reserves remain usable.
Table I: Official reserves assets and other foreign currency assets
Table II: Predetermined short-term net drains on foreign currency assets
Table III: Contingent short-term net drains on foreign currency assets
Table IV: Memo Items
Bank Negara Malaysia
30 September 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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23 Sep 2020 | International Reserves of Bank Negara Malaysia as at 15 September 2020 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-15-september-2020 | null | null |
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18 Sep 2020 | Signing of Bilateral Swap Arrangement between Japan and Malaysia | https://www.bnm.gov.my/-/signing-of-bilateral-swap-arrangement-between-japan-and-malaysia | null | null |
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Signing of Bilateral Swap Arrangement between Japan and Malaysia
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18 Sep 2020
Today, the Bank of Japan, acting as agent of the Minister of Finance of Japan, and Bank Negara Malaysia signed the second Bilateral Swap Arrangement (BSA). This BSA enables both authorities to swap their local currencies (i.e. Japanese Yen and Malaysian Ringgit, respectively) for US Dollar. The arrangement will provide up to USD 3 billion for both countries.
The BSA reflects the continued bilateral financial cooperation between Japan and Malaysia that will contribute to the stability of financial markets. It will further strengthen the growing economic and trade ties between the two countries.
Bank Negara Malaysia
Bank of Japan
18 September 2020
Bank Negara Malaysia
18 September 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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15 Sep 2020 | Joint Statement by Bank Negara Malaysia and Securities Commission Malaysia - Accelerating climate action through the financial sector | https://www.bnm.gov.my/-/joint-statement-by-bank-negara-malaysia-and-securities-commission-malaysia-accelerating-climate-action-through-the-financial-sector | null | null |
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Joint Statement by Bank Negara Malaysia and Securities Commission Malaysia - Accelerating climate action through the financial sector
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Joint Statement by Bank Negara Malaysia and Securities Commission Malaysia - Accelerating climate action through the financial sector
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15 Sep 2020
The Joint Committee on Climate Change (JC3) held its third meeting on 14 September 2020. The meeting discussed the progress of initiatives under its four sub-committees (namely, Risk Management; Governance and Disclosure; Product and Innovation; and Engagement and Capacity Building), as well as the focus of priorities for the next 12 months.
Members affirmed the importance of climate change management given the significant risks and systemic impact that climate events can inflict on our lives and livelihoods. The current COVID-19 pandemic has highlighted the far reaching impact of similar global events, with demand and supply shocks spreading across borders. This has raised a further sense of urgency to the work of JC3 in supporting efforts to build resilience against climate and environmental-related events, and secure an orderly transition to a more sustainable economy.
The meeting discussed the completed deliverables of the sub-committees during the year and future work to be undertaken.
Following the public consultation on Bank Negara Malaysia’s Discussion Paper on Climate Change and Principles-Based Taxonomy which was published in December 2019, comments and suggestions had been received from more than 80 institutions. A revised document, which will include enhancements to the classification system and scope of application, as well as additional guidance for implementation will be published in early 2021. In parallel, 12 financial institutions that are members of the JC3 will participate in a pilot implementation of the taxonomy scheduled to commence this month. Members also provided input on the development of reference documents on climate risk management and scenario analysis which will be undertaken by Sub-committee 1 over the coming months to further strengthen risk management practices in the financial sector.
Members discussed the results of an assessment conducted on climate-related disclosure practices across a sample of financial institutions operating in Malaysia based on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Insights from the assessment will inform planned work on developing an Application Guide on Climate-Related Disclosures which will commence shortly as part of initiatives to improve the quality of disclosures.
Members exchanged views on the demand and supply conditions shaping the current green finance landscape in Malaysia. Key challenges noted by financial sector participants include the paucity and fragmentation of information, gaps in technology knowledge, coordination issues and low visibility on national strategies. Initial views were shared on measures to address these market gaps, which will be further developed by the Product and Innovation sub committee. Members discussed the important role of institutional investors in the development of products and services to address climate change and agreed to further engage with institutional investors to identify opportunities in this area.
In pursuing JC3’s continuing engagement and capacity building efforts, three awareness and education programmes were organised despite constraints posed by the MCO. The programmes brought together financial service providers, Government ministries and agencies, education institutions, business corporations and NGOs to share experiences, develop technical knowledge and build networks in climate risk-related areas. The meeting also discussed plans to develop more structured technical capacity building programmes for financial industry participants.
As part of its priorities over the next 12 months, members committed to work towards wider adoption of the recommendations by the TCFD and advance concrete actions to pave the way for the adoption of disclosure standards by the industry in the immediate future. JC3 members also agreed to take up as part of its future work plan, the development of measures to help bridge current gaps in climate and environment risk-related information needed to support risk management and product solutioning by financial service providers.
Bank Negara Malaysia
Securities Commission Malaysia
15 September 2020
About the JC3
The JC3 is a platform established in September 2019 to pursue collaborative actions for building climate resilience within the Malaysia financial sector. The JC3 is co-chaired by Jessica Chew Cheng Lian, Deputy Governor Bank Negara Malaysia and Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive Securities Commission Malaysia with members comprising senior officials from Bursa Malaysia and 19 financial industry players as well as relevant experts.
Bank Negara Malaysia
15 September 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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10 Sep 2020 | Monetary Policy Statement | https://www.bnm.gov.my/-/monetary-policy-statement-10092020 | null | null |
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Monetary Policy Statement
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Monetary Policy Statement
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10 Sep 2020
At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 1.75 percent.
The global economy continues to improve, with the easing of containment measures across more economies and strong policy support. The re-opening of production facilities has led to a resumption of manufacturing and trade activity. However, the recovery in the services sector has been slower. Financial conditions have improved, although risk aversion remains elevated. The outlook is still subject to downside risks and uncertainty, primarily due to the risk of a resurgence of the pandemic and weaker labour market conditions.
For Malaysia, economic activity continues to recover from the trough in April this year. Latest high frequency indicators show that labour market conditions, household spending and trade activity have continued to improve. Also supporting the economic recovery are the fiscal stimulus packages, alongside monetary and financial measures. Looking ahead, the improvement is expected to continue into 2021, supported by the recovery in external demand and expansion in private sector expenditure. However, the pace of recovery will be uneven across sectors, with economic activity in some industries remaining below pre-pandemic levels, and a slower improvement in the labour market. This outlook is still subject to downside risks, particularly from ongoing uncertainties surrounding the course of the pandemic domestically and globally.
Inflationary pressures are expected to remain muted in 2020. Headline inflation is likely to average negative in 2020 given the substantially lower global oil prices, and average higher in 2021, within the earlier projected ranges. The outlook, however, will continue to be significantly affected by global oil and commodity prices. Underlying inflation is expected to be subdued amid spare capacity in the economy.
The cumulative 125 basis points reduction in the OPR this year will continue to provide stimulus to the economy. Given the outlook for growth and inflation, the MPC considers the stance of monetary policy to be appropriate and accommodative. The Bank remains committed to utilise its policy levers as appropriate to create enabling conditions for a sustainable economic recovery.
Bank Negara Malaysia
10 September 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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04 Sep 2020 | International Reserves of Bank Negara Malaysia as at 28 August 2020 | https://www.bnm.gov.my/-/international-reserves-of-bank-negara-malaysia-as-at-28-august-2020 | null | null |
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International Reserves of Bank Negara Malaysia as at 28 August 2020
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International Reserves of Bank Negara Malaysia as at 28 August 2020
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4 Sep 2020
The international reserves of Bank Negara Malaysia amounted to USD104.4 billion as at 28 August 2020. The reserves position is sufficient to finance 8.6 months of retained imports and is 1.1 times total short-term external debt. Related Assets
BNM Statement of Asset & Liabilities - 28 August 2020
Bank Negara Malaysia
4 September 2020
© Bank Negara Malaysia, 2020. All rights reserved.
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