Green investments to support economic growth next year - BNM governor

Abdul Rasheed said Malaysia’s growth will continue to be driven by resilient domestic expenditure underpinned by continued employment and wage growth.

DUBAI: Malaysia expects to see more green and climate-change related investments next year to support economic growth which is projected at four to five per cent, Bank Negara Malaysia’s (BNM) governor Datuk Abdul Rasheed Ghaffour said.

He said the government and the private sector have undertaken a number of multi-year projects that would contribute towards the nation's economic growth from next year onwards.

"There are a number of plans that the government has already announced, one of which is related to climate change, which is the National Energy Transition Roadmap (NETR).

"There are also a lot of projects that are going to be implemented; there are 10 flagship projects and these will cover the six important levers of the green economy that will also support economic growth not just (for) next year, but over the next three to five years," he told Bernama on the sidelines of Malaysia’s Climate Finance Day in the Malaysia Pavilion at the 28th Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change here.

Abdul Rasheed noted that apart from the NETR, the recently launched Hydrogen Economy and Technology Roadmap and the New Industrial Master Plan 2030 will also attract specific investments that will also support Malaysia's growth in near term.

This, he said, will also include projects related to environmental, social and governance (ESG).

In addition to investment support, the governor said the export sector also saw some improvement this year and is expected to further improve next year, supporting the nation's growth.

He added that the economic growth will also be spurred by increasing domestic demand and private consumption, as well as the tourism industry.

Meanwhile, on ringgit’s performance, Abdul Rasheed stressed that the central bank remains committed to avoid excessive volatility in the currency market as emerging markets are largely affected by the strength of the US dollar.

"In terms of ringgit volatility, if we compare where we are with others in the region, ours is the smallest in terms of volatility.

"It is BNM's role to maintain orderly function (in the currency market) and to ensure that there is no excessive volatility in the ringgit," he added

In terms of an advanced economy’s monetary policy, the governor said its hiking cycle may have peaked.

The softening economy, coupled with inflation moderating, will support the ringgit and other emerging markets’ currencies, he said. - Bernama

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