PETLING JAYA: The National Energy Transition Roadmap (NETR) and the New Industrial Master Plan (NIMP) are expected to accelerate the country’s transition and open up large investment opportunities, said Bank Negara Malaysia (BNM).
Its governor Abdul Rasheed Ghaffour said BNM has been focusing on efforts to lay down relevant building blocks for a conducive green finance ecosystem to facilitate Malaysia’s transition to a sustainable economy.
This initiative is conducted together with the Securities Commission Malaysia, he said.
“We have developed frameworks and practical tools such as the climate change and principle-based taxonomy, sectoral guides, and climate risk management and scenario analysis policy document as guidance for the industry in building its climate resilience as well as capability in contributing towards the transition,” he said.
Abdul Rasheed said this in his speech during a panel session at the Invest Malaysia New York organised by Bursa Malaysia recently.
BNM’s mandate, he reaffirmed, is to promote monetary and financial stability that is conducive to the sustainable growth of the Malaysian economy.
“Malaysia’s growth will continue to be driven by resilient domestic expenditure underpinned by continued employment and wage growth,” he said.
In addition, he said investment activity will be supported by the continued progress of multi-year infrastructure projects and implementation of catalytic initiatives under the recently announced national master plans.
Strengthening of the ringgit
On the ringgit, the governor said despite it having depreciated during the first half of 2023, the local currency has begun to strengthen against the US dollar since July 1.
“Recently, the ringgit appreciated against most major trading partners’s currencies.
“Looking ahead, we expect that further clarity on the end of the monetary policy tightening cycle by major central banks will provide support to the ringgit and emerging market currencies in general,” he said.
He also stressed that the value of the ringgit is market-determined.
“Our presence in the foreign exchange market is only to prevent excessive volatility and to ensure orderly market conditions. We do not target any specific level for the ringgit,” he added.
The governor said Malaysia’s portfolio investors and its financial markets are progressive, dynamic and supported by steady market development.
Abdul Rasheed expressed that the Malaysian government bond market stands out as one of the largest and most developed in the region.
“It remains stable and liquid with attractive real yields to investors,” he pointed out.