Challenging 2017 but a better global environment - BNM Governor

Challenging 2017 but a better global environment - BNM Governor

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KUALA LUMPUR: "The one certainty (for the world financial system now) is extra uncertainty in 2017," stated Financial institution Negara Malaysia (BNM) Governor Datuk Muhammad Ibrahim who amazed many together with his witty humour for somebody who is understood to be critical and a no-nonsense sort.

He was talking on the Senior Editors' briefing on Wednesday, forward of the discharge of the central financial institution's 2016 Annual Report on Thursday, his first such briefing after helming BNM for nearly a yr.

Final yr has been a tumultuous yr and an actual check for the brand new Governor however the measures and insurance policies the central financial institution laid have helped stabilise the monetary sector and financial system normally.

The Governor had been well-prepared for the briefing, relating a wide-range of topics, from financial system to funds, migrant staff and even voicing considerations over the way forward for youths when it comes to housing affordability and employability.

Of significance was the measures to deal with liquidity points within the overseas change (foreign exchange) market which have been put in place on Dec 2, 2016, considered one of which was for exporters to transform 75 per cent of their export proceeds into ringgit.

He stated the introduced measures to realign demand for the ringgit have proven robust encouraging outcomes.

The conversion of the export proceeds amounted to US$2 billion (US$1 = RM4.43) as much as February 2017, from US$500 million in 2016 and US$eight.Four billion in 2015.

He stated the main non-resident individuals out there have carried out the rebalancing of their portfolios and therefore, he didn't anticipate an enormous outflow.

As as to if there's going to be extra measures, he stated, the December measures are adequate however BNM would wish a couple of extra to deepen the foreign exchange market and for monetary market improvement.

Muhammad stated 2017 would see a greater international setting, although prospects stay difficult as the worldwide progress was not increasing as nice because it did earlier than.

The outlook for Malaysia too is difficult with gross home product progress forecast of between Four.Three and Four.eight per cent in 2017 from Four.2 per cent in 2016 however international demand would help progress, he stated.

When it comes to inflation, whereas it's anticipated to be larger by between Three-Four per cent this yr in contrast with 2.1 per cent in 2016, he doesn't anticipate a extra vital spillover as it's cost-driven and that home demand is predicted to be secure this yr.

In the course of the briefing, Muhammad additionally touched with reference to affordability among the many youths particularly when it comes to housing.

"The instant drawback is just not concerning the entry to financing fairly (its) elevating family revenue degree. Additionally it's about excessive costs of homes and we see the necessity to rebalance the availability of housing with extra reasonably priced segments," he identified.

In doing its personal simulation, BNM gathered that the reasonably priced housing worth for these incomes RM3,000 and under, was about RM176,000, these incomes RM5,000 and under might afford a most RM283,000 in home worth whereas these incomes RM10,000 and under might purchase a home as much as RM515,000.

It was concluded that nearly three quarters of the availability of homes out there weren't reasonably priced.

As for the utilization of bank cards whose danger is the unsecured chance of default because of the larger charges, he stated, banks have been advised to be clear when issuing them to clients.

On the briefing, a query was posed on the fraud and theft dedicated by financial institution staff themselves and to this, he stated, the requirement was to report back to the police.

He stated the central financial institution would view it significantly if the banks didn't make a report on the wrongdoings by its staff.

As for the probe into BNM foreign exchange losses within the early 90s, he stated, the central financial institution wouldn't be distracted by its core enterprise and would render full cooperation when requested to.

A Particular Activity Pressure has been set as much as perform preliminary investigations into the losses. -- Bernama

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