Page 120 - Malaysia 2016
P. 120
2016
• To consolidate and rationalise While economic activity in the US
gained traction, growth in the euro
government agencies area improved at a modest pace
during the year due to unresolved
particularly Companies Limited structural constraints. Given the highly
challenging external environment,
by Guarantee (CLBG) and economic growth in Asia moderated
during the year as weak export
statutory bodies performance weighed on the pace
of economic expansion. In particular,
9. Reprioritise Development Expenditure growth in PR China remained on a
to focus on rakyat-centric, high impact moderating trend, due to the slowing
and low import content projects – activity in sectors with excess capacity
as well as weaknesses in the external
reduce cash ow commitments up to sector. Global inflationary pressures also
moderated during the year, reflecting
RM5 billion mainly lower global commodity prices
and the subdued global demand
10. Development Financial Institution conditions.
(DFI) and Venture Capital (VC) to In response to the slowing growth
provide funds up to RM6 billion for momentum in an increasingly uncertain
economic and financial environment,
Small and Medium-size Enterprises the overall global monetary policy
stance became more accommodative
(SMEs) and startup companies in most regions. Among advanced
economies, there was a divergence in
11. To narrow the income gap the monetary policy stance of the major
between top management and central banks. While the US took the first
general workers by Government- step to normalise interest rates, the euro
Linked Companies (GLCs) area and Japan increased monetary
stimulus through their respective
EXECUTIVE SUMMARY asset purchase programmes and by
introducing negative interest rates.
In 2015, global growth moderated amid In Asia, several economies reduced
heightened international financial key policy rates and introduced fiscal
market volatility. Throughout the year, measures to support growth. Despite
the global economic and financial the challenging economic environment
environment was shaped by three in 2015, the Malaysian economy
major developments. First, global registered a growth of 5.0%, supported
commodity prices fell sharply to post- by continued expansion in domestic
crisis lows, with significant repercussions demand. The Annual Report provides
for global growth and inflation. an analysis of the developments in
Second, international financial markets the Malaysian economy and outlines
experienced heightened volatility amid the challenges ahead. The report also
policy shifts highlights the Bank’s efforts to enhance
in the major economies and concerns its governance, organisational
over the slowing momentum of global development and communications.
growth, sovereign debt in the euro
area, and the fall in commodity prices. The Malaysian economy in 2015
The volatility in financial markets
was exacerbated by speculative The Malaysian economy grew by 5.0%
position-taking and the unwinding in 2015 (2014: 6.0%), supported by the
of those positions, as well as sudden continued expansion of domestic
shifts in investors’ risk appetite, that
led to volatile capital flows. Third,
global growth moderated as the
modest improvements in growth in the
advanced economies were insufficient
to offset the lower growth in emerging
economies. Growth was also uneven
across the advanced economies.
• To consolidate and rationalise While economic activity in the US
gained traction, growth in the euro
government agencies area improved at a modest pace
during the year due to unresolved
particularly Companies Limited structural constraints. Given the highly
challenging external environment,
by Guarantee (CLBG) and economic growth in Asia moderated
during the year as weak export
statutory bodies performance weighed on the pace
of economic expansion. In particular,
9. Reprioritise Development Expenditure growth in PR China remained on a
to focus on rakyat-centric, high impact moderating trend, due to the slowing
and low import content projects – activity in sectors with excess capacity
as well as weaknesses in the external
reduce cash ow commitments up to sector. Global inflationary pressures also
moderated during the year, reflecting
RM5 billion mainly lower global commodity prices
and the subdued global demand
10. Development Financial Institution conditions.
(DFI) and Venture Capital (VC) to In response to the slowing growth
provide funds up to RM6 billion for momentum in an increasingly uncertain
economic and financial environment,
Small and Medium-size Enterprises the overall global monetary policy
stance became more accommodative
(SMEs) and startup companies in most regions. Among advanced
economies, there was a divergence in
11. To narrow the income gap the monetary policy stance of the major
between top management and central banks. While the US took the first
general workers by Government- step to normalise interest rates, the euro
Linked Companies (GLCs) area and Japan increased monetary
stimulus through their respective
EXECUTIVE SUMMARY asset purchase programmes and by
introducing negative interest rates.
In 2015, global growth moderated amid In Asia, several economies reduced
heightened international financial key policy rates and introduced fiscal
market volatility. Throughout the year, measures to support growth. Despite
the global economic and financial the challenging economic environment
environment was shaped by three in 2015, the Malaysian economy
major developments. First, global registered a growth of 5.0%, supported
commodity prices fell sharply to post- by continued expansion in domestic
crisis lows, with significant repercussions demand. The Annual Report provides
for global growth and inflation. an analysis of the developments in
Second, international financial markets the Malaysian economy and outlines
experienced heightened volatility amid the challenges ahead. The report also
policy shifts highlights the Bank’s efforts to enhance
in the major economies and concerns its governance, organisational
over the slowing momentum of global development and communications.
growth, sovereign debt in the euro
area, and the fall in commodity prices. The Malaysian economy in 2015
The volatility in financial markets
was exacerbated by speculative The Malaysian economy grew by 5.0%
position-taking and the unwinding in 2015 (2014: 6.0%), supported by the
of those positions, as well as sudden continued expansion of domestic
shifts in investors’ risk appetite, that
led to volatile capital flows. Third,
global growth moderated as the
modest improvements in growth in the
advanced economies were insufficient
to offset the lower growth in emerging
economies. Growth was also uneven
across the advanced economies.
