Bank Negara Malaysia today released three reports, Annual Report 2020 (AR 2020), Economic and Monetary Review 2020 (EMR 2020), and Financial Stability Review for Second Half 2020 (FSR 2H2020).
Bank Negara Malaysia’s total assets amounted to RM488 billion, with a net profit of RM10.2 billion for the financial year ending 31 December 2020. In comparison, the General Reserve Fund will receive RM6.2 billion.
It also sets out how the Bank took swift and broad-ranging measures to cushion shocks to the financial system and the economy arising from the pandemic. These include reducing the Overnight Policy Rate (OPR), ensuring adequate liquidity and orderly market conditions.
The Malaysian economy is projected to rebound in 2021, with the GDP achieving pre-Covid-19 levels by mid-2021. And in their forecast, herd immunity will be achieved in the first quarter of 2022, said Bank Negara Malaysia governor Datuk Nor Shamsiah Mohd Yunus.
|For Malaysia, the economy’s expectation to recover in 2021, with growth ranging from 6.0 – 7.5%. Stronger external demand and higher private and public expenditure will underpin the growth.|
Driven by supply-side factors, headline inflation is expected to average between 2.5% – 4% (2020: -1.2%). On the other hand, underlying price pressures will remain subdued, with core inflation projected to be between 0.5 – 1.5% amid spare capacity in the economy.
The rollout of the National COVID-19 Immunisation Programme will improve confidence and support the economic recovery. Malaysia will drive the rebound in economic growth in 2021 with integration in fast-growing segments of global value chains and diversified external trade structure, and continued policy support.
Liberalisation of Foreign Exchange Policy (FEP) [effective 15 April 2021]
Moreover, Bank Negara Malaysia (BNM) also announced further liberalisation of foreign exchange policy (FEP) which provides greater flexibilities to businesses as part of our continued efforts to strengthen Malaysia’s position in the global supply chain and to foster a conducive environment in attracting foreign direct investment (FDI) into Malaysia.
Therefore, these measures will provide greater flexibilities to the export-oriented industries to better support the economic recovery.
1. Removal of export conversion rule
2. Resident exporters can settle domestic trade in foreign currency with other residents involved in the global supply chain
3. Resident exporters can extend the period for repatriation of export proceeds beyond six months under exceptional circumstances
4. Resident exporters can net-off export proceeds against permitted foreign currency obligations
5. Resident corporates can undertake commodity derivatives hedging directly with non-resident counterparties
For further information, please click on the links below:
With the low OPR, consumers are profiting more from their home purchases.
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