Page 161 - Malaysia Baharu 2018
P. 161
the private and public sectors grew
by 6.0% and 4.5% respectively (2017:
6.4% and 6.2%, respectively).
In 2018, headline inflation declined to
1.0% (2017: 3.7%). The moderation
mainly reflected the impact of the fixing
of retail fuel prices and the zerorisation
of the GST rate. These factors more The international reserves of Bank
than offset upward cost pressures that Negara Malaysia amounted to
remained present for some parts of USD101.4 billion as at end-2018
2018. Core inflation averaged lower compared to USD102.4 billion as at
at 1.6% (2017: 2.3%) amid smaller end-2017. As at 28 February 2019, 6 | MALAYSIAN ECONOMY
cost pass-through to retail prices and international reserves amounted
the absence of excessive demand to USD102.4 billion and remain
pressures. adequate to facilitate international
transactions. The reserves position
Malaysia’s external position remained is sufficient to finance 7.4 months of
resilient amid an increasingly retained imports and is 1.0 time the
challenging global economic short-term external debt.
environment. The current account of
the balance of payments continued to Malaysia’s external debt stood at
register a healthy surplus of 2.4% of RM924.9 billion as at end-2018,
GNI (2017: 3.1% of GNI), contributed equivalent to USD221.0 billion or
by a higher goods surplus and a 64.7% of GDP (end-2017: RM885.2
smaller services deficit, which more billion, equivalent to USD215.9
than offset the deficit in the income billion or 65.4% of GDP). The higher
accounts. Gross exports registered a external debt was driven mainly by the
more moderate growth of 6.8% in 2018 increase in interbank borrowings and
(2017: 18.8%) driven by manufactured corporate loans to finance investment
exports which helped to partially offset activity as well as valuation effects
the decline in commodity exports. following the weakening of ringgit
Gross imports growth also moderated against selected regional and major
to 4.9% (2017: 19.7%), on account currencies, in particular, during the
of weaker intermediate and capital second and third quarters of the year.
imports. Malaysia’s external debt exposure
remained manageable. Favourable
During the year, movements in short- external balance sheet profiles
term flows dominated capital flow across instruments, maturity and
developments as the financial account currency were reinforced by external
of the balance of payments recorded a asset holdings of the domestic banks
net inflow of RM18.6 billion (2017: net and corporates, further mitigating
outflow of RM4.7 billion). A reversal of potential risks.
portfolio investments by non-residents,
which took place amid increasingly Overall, the strong fundamentals
more volatile global financial market and highly diversified structure
conditions, were offset by substantial of the Malaysian economy have
inflows in the other investment account. accorded Malaysia the ability
Meanwhile, long-term foreign direct to weather the headwinds and
investment (FDI) flows resumed at a challenges. Policies were flexible
more moderate pace, while domestic and pre-emptive to ensure risks
firms and institutional investors were minimised. Malaysia’s
continued to undertake direct external position remained healthy,
investments abroad (DIA). with a current account surplus,
adequate international reserves and
159
by 6.0% and 4.5% respectively (2017:
6.4% and 6.2%, respectively).
In 2018, headline inflation declined to
1.0% (2017: 3.7%). The moderation
mainly reflected the impact of the fixing
of retail fuel prices and the zerorisation
of the GST rate. These factors more The international reserves of Bank
than offset upward cost pressures that Negara Malaysia amounted to
remained present for some parts of USD101.4 billion as at end-2018
2018. Core inflation averaged lower compared to USD102.4 billion as at
at 1.6% (2017: 2.3%) amid smaller end-2017. As at 28 February 2019, 6 | MALAYSIAN ECONOMY
cost pass-through to retail prices and international reserves amounted
the absence of excessive demand to USD102.4 billion and remain
pressures. adequate to facilitate international
transactions. The reserves position
Malaysia’s external position remained is sufficient to finance 7.4 months of
resilient amid an increasingly retained imports and is 1.0 time the
challenging global economic short-term external debt.
environment. The current account of
the balance of payments continued to Malaysia’s external debt stood at
register a healthy surplus of 2.4% of RM924.9 billion as at end-2018,
GNI (2017: 3.1% of GNI), contributed equivalent to USD221.0 billion or
by a higher goods surplus and a 64.7% of GDP (end-2017: RM885.2
smaller services deficit, which more billion, equivalent to USD215.9
than offset the deficit in the income billion or 65.4% of GDP). The higher
accounts. Gross exports registered a external debt was driven mainly by the
more moderate growth of 6.8% in 2018 increase in interbank borrowings and
(2017: 18.8%) driven by manufactured corporate loans to finance investment
exports which helped to partially offset activity as well as valuation effects
the decline in commodity exports. following the weakening of ringgit
Gross imports growth also moderated against selected regional and major
to 4.9% (2017: 19.7%), on account currencies, in particular, during the
of weaker intermediate and capital second and third quarters of the year.
imports. Malaysia’s external debt exposure
remained manageable. Favourable
During the year, movements in short- external balance sheet profiles
term flows dominated capital flow across instruments, maturity and
developments as the financial account currency were reinforced by external
of the balance of payments recorded a asset holdings of the domestic banks
net inflow of RM18.6 billion (2017: net and corporates, further mitigating
outflow of RM4.7 billion). A reversal of potential risks.
portfolio investments by non-residents,
which took place amid increasingly Overall, the strong fundamentals
more volatile global financial market and highly diversified structure
conditions, were offset by substantial of the Malaysian economy have
inflows in the other investment account. accorded Malaysia the ability
Meanwhile, long-term foreign direct to weather the headwinds and
investment (FDI) flows resumed at a challenges. Policies were flexible
more moderate pace, while domestic and pre-emptive to ensure risks
firms and institutional investors were minimised. Malaysia’s
continued to undertake direct external position remained healthy,
investments abroad (DIA). with a current account surplus,
adequate international reserves and
159
