Economy remains strong, fundamentals solid, says Guan Eng


KUALA LUMPUR: Newly-minted Finance Minister Lim Guan Eng has reiterated that the Malaysian economy remains strong with solid fundamentals despite the need to improve the current fiscal condition.

He said this when fielding questions by journalists on how the government intends to return confidence to investors given the recent announcement that the current debt-to-GDP ratio stood at 80%.

“In the financial sector, our capitalisation is high, non-performing loans are low and liquidity in the capital market is high. The fundamentals are there but we need to improve the fiscal condition,” he said.

“I'm confident that after we resolve the fiscal condition, we will be even stronger.”

There have been critics of the tone and manner in which Lim has made public the nation's finances. One Bloomberg columnist said Lim's “blunt” approach was risking "leaving investors with an uncertain fiscal outlook".

Bursa Malaysia had fallen sharply over the last two days as foreign funds continued their selldown of local equity. The FBM KLCI fell 69 points or 3.7% over the two sessions, erasing nearly all its gains so far this year.

However, Lim drew attention to the fact that it is not just Malaysia's equity market that has pulled back in recent days, but other stock exchanges in the region as well due to external factors.

“Whether this [transparency] is a cause is up to the stock market to determine. It is not only in Malaysia that the stock market has fallen. Look at Thailand, the US and other countries. There are other intenational factors. Let the stock brokers and analysts see if this is only in Malaysia or regionally and globally.

“We have to be truthful and transparent. If by being transparent we will be punished then there's nothing we can do about it. We will still continue to be transparent.” 

 

Start your ads-free experience now!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

fiscal , debt

   

Next In Business News

Chinese developer Shimao sweetens debt revamp terms ahead of liquidation hearing, sources say
Atome Financial gets up to US$100mil debt facility including from EvolutionX for expansion
Oil prices steady, U.S. consumer price data in focus
Tengku Zafrul: Miti, MoT to mull bolstering airport infrastructure for semiconductor exports
China to create new consumption scenarios to tap consumer demand
Asian shares mostly higher, yen hits record low versus euro
MAHB's passenger traffic hits new milestone of 11.2mil
Malaysian Genomics to market 'GenomeCheck' testing services in SEA
FBM KLCI dips slightly ahead of US price data
The next step in digital banking

Others Also Read