KUALA LUMPUR, Sept 27 — The National Energy Transition Roadmap (NETR) and New Industrial Master Plan (NIMP) are expected to accelerate the country’s transition and open up large investment opportunities, says Bank Negara Malaysia (BNM).
Its governor Datuk Abdul Rasheed Ghaffour, said the central bank together with the Securities Commission Malaysia, is focusing on laying down relevant building blocks for a conducive green finance ecosystem to facilitate a just and orderly transition.
“We have developed frameworks and practical tools such as the climate change and principle-based taxonomy, sectoral guides, and climate risk management and scenario analysis policy document to guide the industry in building its climate resilience and capability in contributing towards transition.
“Macroeconomic stability, a strong and stable financial sector, and sound policymaking institutions have been essential factors supporting Malaysia’s economic development journey thus far,” he said in his speech during the panel session Macro Resilience and Market Insights at Invest Malaysia New York organised by Bursa Malaysia recently.
Abdul Rasheed said BNM’s mandate reaffirms its commitment to promote monetary and financial stability conducive to the sustainable growth of the Malaysian economy.
Malaysia’s growth will continue to be driven by resilient domestic expenditure underpinned by continued employment and wage growth.
He added investment activity will be supported by the continued progress of multi-year infrastructure projects and implementation of catalytic initiatives under the recently announced national master plans.
Domestic financial conditions also remain conducive to financial intermediation amid sustained credit growth.
On the ringgit, the governor said despite the depreciating local note during the first half of 2023, the local unit and several regional currencies have strengthened against the US dollar since July 1, 2023.
“Recently, the ringgit appreciated against most major trade partners’ currencies.
“Looking ahead, we expect further clarity on the end of the monetary policy tightening cycle by major central banks will support the ringgit and emerging market currencies in general.
“I want to stress that the value of the ringgit is market-determined. Our presence in the foreign exchange market is only to prevent excessive volatility and to ensure orderly market conditions. We do not target any specific ringgit level,” Abdul Rasheed said.
Malaysia’s portfolio investors and financial markets are progressive, dynamic, and supported by steady market development.
“The Malaysian Government bond market stands out as one of the largest and most developed in the region. It remains stable and liquid with attractive real yields to investors,” he said.
— Bernama
