Page 165 - Malaysia Baharu 2018
P. 165
orms will contribute to inclusive and social protection programmes, improving
sustainable growth going forward. employability and initiatives to raise
productivity, particularly for the Small
Economic and Monetary and Medium Enterprises (SMEs). Going
Management in 2019 forward, the Government has indicated
its commitment towards ensuring fiscal
Monetary policy in 2019 will focus sustainability and a stronger governance
on supporting the steady growth of framework through the implementation of
the Malaysian economy amid an holistic fiscal reforms.
environment of relatively low inflation.
At the same time, monetary policy will Governance and Organisa-
also consider the prevailing monetary tional Development 6 | MALAYSIAN ECONOMY
and financial conditions. While risks
of financial imbalancesare expected
to remain contained, the MPC is
cognisant of challenges emanating
from potential continued volatility in
global capital flows. In this regard, the
Bank will continue to ensure sufficient
liquidity and orderly market conditions
that remain supportive of financial
intermediation activity. The broad
range of policy options available that
includes monetary policy, micro- and
macroprudential measures provide
the Bank with flexibility to manage
emerging risks. Measures to further
deepen the domestic financial markets As the Central Bank for Malaysia,
will also contribute to orderly market the Bank is mandated to promote
conditions. The combined effect of monetary stability and financial
these policies will ensure that the stability conducive to the sustainable
Bank’s policy efficacy is maintained growth of the Malaysian economy.
without overburdening any single The Bank therefore places priority
policy tool. in strengthening its governance and
internal capabilities to ensure it is
Fiscal policy in 2019 aims to strengthen effective in discharging its principal
the Government’s fiscal position by objects and functions under the laws it
pursuing gradual fiscal consolidation administers, and that it is responsible
while lending continued support for in managing its resources.
growth, paring down debt and liabilities,
as well as promoting economic The Board of Directors is responsible
inclusiveness. Correspondingly, the for overseeing the management and
medium term fiscal plan outlined the operations of the Bank and reviews the
path towards consolidation with fiscal performance of the Bank in delivering
balances targeted at -3.4% and -3.0% its mandates. The Board comprises
of GDP in 2019 and 2020 respectively. the Governor as Chairman, the Deputy
The path towards fiscal consolidation Governors, the Secretary General of
is anchored in several key reform the Treasury and independent non-
initiatives which include enhancing executive members, with the latter
expenditure effectiveness, diversify forming the majority within the Board.
and broaden the revenue base and The year saw the appointment of a
encourage holistic and transparent new Governor, Nor Shamsiah Yunus,
debt management. The 2019 Budget on 1 July 2018, after Muhammad bin
also accorded emphasis to improving Ibrahim stepped down as Governor on
socio-economic wellbeing, strengthening 15 June 2018. Governor Nor Shamsiah
163
sustainable growth going forward. employability and initiatives to raise
productivity, particularly for the Small
Economic and Monetary and Medium Enterprises (SMEs). Going
Management in 2019 forward, the Government has indicated
its commitment towards ensuring fiscal
Monetary policy in 2019 will focus sustainability and a stronger governance
on supporting the steady growth of framework through the implementation of
the Malaysian economy amid an holistic fiscal reforms.
environment of relatively low inflation.
At the same time, monetary policy will Governance and Organisa-
also consider the prevailing monetary tional Development 6 | MALAYSIAN ECONOMY
and financial conditions. While risks
of financial imbalancesare expected
to remain contained, the MPC is
cognisant of challenges emanating
from potential continued volatility in
global capital flows. In this regard, the
Bank will continue to ensure sufficient
liquidity and orderly market conditions
that remain supportive of financial
intermediation activity. The broad
range of policy options available that
includes monetary policy, micro- and
macroprudential measures provide
the Bank with flexibility to manage
emerging risks. Measures to further
deepen the domestic financial markets As the Central Bank for Malaysia,
will also contribute to orderly market the Bank is mandated to promote
conditions. The combined effect of monetary stability and financial
these policies will ensure that the stability conducive to the sustainable
Bank’s policy efficacy is maintained growth of the Malaysian economy.
without overburdening any single The Bank therefore places priority
policy tool. in strengthening its governance and
internal capabilities to ensure it is
Fiscal policy in 2019 aims to strengthen effective in discharging its principal
the Government’s fiscal position by objects and functions under the laws it
pursuing gradual fiscal consolidation administers, and that it is responsible
while lending continued support for in managing its resources.
growth, paring down debt and liabilities,
as well as promoting economic The Board of Directors is responsible
inclusiveness. Correspondingly, the for overseeing the management and
medium term fiscal plan outlined the operations of the Bank and reviews the
path towards consolidation with fiscal performance of the Bank in delivering
balances targeted at -3.4% and -3.0% its mandates. The Board comprises
of GDP in 2019 and 2020 respectively. the Governor as Chairman, the Deputy
The path towards fiscal consolidation Governors, the Secretary General of
is anchored in several key reform the Treasury and independent non-
initiatives which include enhancing executive members, with the latter
expenditure effectiveness, diversify forming the majority within the Board.
and broaden the revenue base and The year saw the appointment of a
encourage holistic and transparent new Governor, Nor Shamsiah Yunus,
debt management. The 2019 Budget on 1 July 2018, after Muhammad bin
also accorded emphasis to improving Ibrahim stepped down as Governor on
socio-economic wellbeing, strengthening 15 June 2018. Governor Nor Shamsiah
163
