Page 94 - Official Year Book 2019
P. 94
aysia Heightened risk aversion in financial markets led to sustained demand
Economic for safe haven assets, exchange rate volatility as well as capital flow
In 2019 reversals from Emerging Market Economies (EMEs).
The global economy and global trade Amid this challenging global economic environment and domestic
expanded by 2.9 percent and 1.0 percent, supply disruptions, the Malaysian economy expanded by 4.3 per cent
respectively in 2019 (2018: 3.6 percent in 2019, supported by resilient private sector spending. Headline CPI
and 3.7 percent, respectively), amid inflation was lower at 0.7per cent (2018: 1.0 per cent), while underlying
protracted and unresolved trade inflation remained relatively stable (2019: 1.5 per cent; 2018: 1.6 per
tensions which exacerbated the cyclical cent). The Monetary Policy Committee (MPC) meeting in May 2019
downturn in global manufacturing and decided to reduce the OPR from 3.25 per cent to 3.00 per cent in
investment activities. order to preserve the degree of monetary accommodativeness, thus
ensuring a conducive monetary environment for continued growth
amid price stability. In addition, the Statutory Reserve Requirement
(SRR) ratio was reduced from 3.50 per cent to 3.00 per cent in
November 2019, which further supported the efficient functioning of
the domestic financial markets.
82 MALAYSIA BAHARU 2019: Official Year Book
Economic for safe haven assets, exchange rate volatility as well as capital flow
In 2019 reversals from Emerging Market Economies (EMEs).
The global economy and global trade Amid this challenging global economic environment and domestic
expanded by 2.9 percent and 1.0 percent, supply disruptions, the Malaysian economy expanded by 4.3 per cent
respectively in 2019 (2018: 3.6 percent in 2019, supported by resilient private sector spending. Headline CPI
and 3.7 percent, respectively), amid inflation was lower at 0.7per cent (2018: 1.0 per cent), while underlying
protracted and unresolved trade inflation remained relatively stable (2019: 1.5 per cent; 2018: 1.6 per
tensions which exacerbated the cyclical cent). The Monetary Policy Committee (MPC) meeting in May 2019
downturn in global manufacturing and decided to reduce the OPR from 3.25 per cent to 3.00 per cent in
investment activities. order to preserve the degree of monetary accommodativeness, thus
ensuring a conducive monetary environment for continued growth
amid price stability. In addition, the Statutory Reserve Requirement
(SRR) ratio was reduced from 3.50 per cent to 3.00 per cent in
November 2019, which further supported the efficient functioning of
the domestic financial markets.
82 MALAYSIA BAHARU 2019: Official Year Book
