KUALA LUMPUR, Sept 19 — Malaysia will not impose capital controls for now but use other existing financial instruments to correct any economic volatility, Prime Minister Datuk Seri Najib Razak, said today.
However, he did rule out the possibility of implementing capital controls as a last resort, as the current economic environment in the country was still resilient.
The Malaysian economy remains resilient compared to other countries in the region due to its strong reserves position, coupled with high savings in the Employees Provident Fund (EPF), Tabung Haji and Kumpulan Wang Amanah Pencen, he said during a recording at the CNBC Summit Conference, which will be aired over the business network at 5pm tomorrow.
“Chances of a default is minimum. Despite our money leaving, our reserves are more than enough compared to what we had during the financial crisis in 1997,” he added.
Najib, who is also Finance Minister, said that the country’s current reserves stood at US$130 billion (RM411 billion) compared to below US$30 billion in 1997.
The Malaysian economy remains resilient in contrast to other countries in the region due to the strong reserves position, coupled with savings in the Employees Provident Fund (EPF), Tabung Haji and Kumpulan Wang Amanah Pencen, says Najib.
“The chances of a default is minimum. Despite money leaving the country, our reserves are more than sufficient, compared to what we had during the financial crisis of 1997,” he said during a recording at the CNBC Summit Conference which will be aired over the business network at 5pm tomorrow.
Najib said Malaysia’s reserves stood at US$130 billion when compared to below US$30 billion in 1997. — Bernama
(Source: The Malay Mail Online)
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