Bank Negara Malaysia’s annual reports for 2023 underscore the nation’s economic resilience, with strategies to promote stability, support MSMEs, manage inflation, and enhance financial sector resilience.
20 March 2024 – Bank Negara Malaysia (BNM) has unveiled its highly anticipated Annual Report 2023 (AR 2023), Economic and Monetary Review 2023 (EMR 2023), and Financial Stability Review for Second Half 2023 (FSR 2H 2023), providing comprehensive insights into the nation’s economic landscape and the central bank’s strategic initiatives to foster resilience and growth. The AR 2023 meticulously details BNM’s endeavors in promoting monetary and financial stability while navigating the complexities of the global economic environment, with notable emphasis on supporting micro, small, and medium enterprises (MSMEs) and advancing sustainable finance solutions. Additionally, the report highlights BNM’s commitment to enhancing climate resilience within the financial sector and its proactive stance in combating online financial fraud.
Within the EMR 2023, BNM offers a forward-looking economic assessment, projecting a growth trajectory of between 4% and 5% for the Malaysian economy in 2024. This optimistic outlook is underpinned by resilient domestic demand and improving external conditions, albeit with inflationary pressures and exchange rate fluctuations posing potential risks. Furthermore, the review underscores BNM’s proactive engagement with government-linked companies (GLCs) and government-linked investment companies (GLICs) to bolster the value of the ringgit and stimulate market interest in the currency.
Meanwhile, the FSR 2H 2023 provides a comprehensive analysis of domestic financial stability, highlighting the orderly nature of domestic financial markets amidst global volatility. Notably, stress tests reaffirm the robustness of financial institutions in weathering severe macroeconomic shocks, bolstering confidence in their ability to support the financing needs of households and businesses. Additionally, BNM’s concerted efforts to strengthen operational and cyber resilience in collaboration with local and international counterparts underscore its commitment to safeguarding the integrity of the financial system.
Bank Negara Malaysia Governor Datuk Abdul Rasheed Ghaffour expressed cautious optimism regarding the nation’s economic prospects, citing a favorable window of opportunity to implement crucial structural reforms. He emphasized the importance of decisive collective actions in capitalizing on Malaysia’s robust economic rebound post-COVID and laying the groundwork for sustained growth and prosperity. Despite the challenges ahead, Ghaffour reiterated that these reforms represent investments in Malaysia’s future, aimed at fostering the prosperity of its citizens and the nation as a whole.
