Bank Negara's international reserves rise to US$120.9bil
In a statement today, the central bank said the reserves position is sufficient to finance 4.8 months of imports of goods and services, and is 0.9 times the total short-term external debt.
The main components of the reserves were foreign currency reserves (US$107.3 billion), the International Monetary Fund reserves position (US$1.3 billion), special drawing rights (SDRs) (US$5.9 billion), gold (US$4.1 billion) and other reserve assets (US$2.3 billion).
Total assets amounted to RM613.13 billion, comprising gold and foreign exchange and other reserves, including SDRs (RM511.37 billion), Malaysian government papers (RM13.62 billion), deposits with financial institutions (RM6.25 million), loans and advances (RM27.31 billion), land and buildings (RM4.58 billion), and other assets (RM50 billion).
BNM said total capital and liabilities amounted to RM613.13 billion, comprising paid-up capital (RM100 million), reserves (RM189.98 billion), currency in circulation (RM172.10 billion), deposits by financial institutions (RM125.16 billion), federal government deposits (RM9.90 billion), other deposits (RM75.19 billion), Bank Negara papers (RM10.08 billion), allocation of SDRs (RM27.78 billion), and other liabilities (RM2.84 billion).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
20 minutes ago
- New Straits Times
Malaysia on track to cut debt-to-GDP to 60pct
KUALA LUMPUR: Malaysia is on track to reduce its debt-to-GDP ratio to 60 per cent over the medium term, backed by disciplined fiscal management and lower annual borrowings. Treasury secretary-general Datuk Johan Mahmood Merican said the country's fiscal consolidation efforts are bearing fruit, with the budget deficit narrowing from 5.5 per cent of gross domestic product (GDP) in 2022 to 4.1 per cent last year and further targeted to reach 3.8 per cent in 2025. Concurrently, annual new borrowings have declined significantly, from RM99 billion in 2022 to RM77 billion in 2024, reflecting the government's commitment to long-term fiscal sustainability, Johan said in an interview with TV3. "This shows that each year, the level of new debt is being lowered. This is consistent with the government's target to reduce the national debt level to 60 per cent of GDP. "Currently, it stands at around 64 per cent, but the reduction in annual deficit and new borrowings will support the achievement of the 60 per cent target. "So far, the government is on track, and what has been implemented is aligned with what was targeted under the fiscal responsibility legislation," he said. He said certain parties may attempt to distort the narrative around the government's financial management, but international bodies such as the International Monetary Fund have acknowledged Malaysia's commitment to fiscal reforms, particularly through the implementation of the Fiscal Responsibility Act. Prime Minister Anwar Ibrahim said the government has successfully lowered annual new borrowings, marking progress toward its commitment to more responsible fiscal management with only interest payments on existing debt yet to be reduced. He said the decline in new debt aligns with the government's efforts to narrow the fiscal deficit, adding that the administration remains committed to reducing the deficit gradually and responsibly, without disrupting national development. Anwar, who also serves as finance minister, said the government has deliberately taken a phased approach to ensure that deficit reduction does not compromise development priorities or undermine investor confidence. Progressive tax reform protects rakyat. Johan said the government's expansion of the Sales and Services Tax (SST) was part of a progressive and targeted tax approach, one designed to avoid overburdening the rakyat and support sustainable growth. "If we were to reintroduce the Goods and Services Tax (GST) using the same parameters as SST, it would generate more than double the tax revenue. But this could be too heavy a burden on the economy," he said. Instead, Johan said SST is structured to exempt essential items such as basic food and focus taxation on non-essential or premium goods. "For example, service tax is applied to industrial buildings but not to residential homes. This ensures that those with higher purchasing power contribute more," he shared. He added that additional revenue collected would go towards improving core public services. In 2025, welfare assistance under Sumbangan Tunai Rahmah (STR) will increase from RM10 billion to RM13 billion. Meanwhile, allocations for education and healthcare have also been raised. The Education Ministry will receive RM74 billion, up from RM59 billion, and the Health Ministry RM45 billion, up from RM41 billion. "These funds will be used to repair schools and clinics, fix road conditions, and upgrade basic infrastructure, ensuring the rakyat enjoys better quality of life through responsible and equitable fiscal measures," Johan said.
The Star
29 minutes ago
- The Star
On alert against Mossad
KUALA LUMPUR: Aware of threats posed by international intelligence agencies including Mossad, Malaysia is taking extra precautions to ensure safety amid its firm stance on geopolitical issues, says Datuk Seri Anwar Ibrahim. The Prime Minister said the country has become a target for arms smuggling by Mossad agents, possibly due to its commitment in calling out atrocities and injustice faced by Palestinians. 'This information is based on recent intelligence briefings. We are treating this matter seriously, following strong evidence of their (Mossad's) presence here,' he told the Dewan Rakyat during the Prime Minister's Question Time. He was responding to a supplementary question by Wan Ahmad Fayshal Wan Ahmad Kamal (PN-Machang), who asked the Prime Minister to explain whether measures have been taken to ensure the country is safe from the threat of Mossad agents. Anwar said several threats from foreign intelligence agencies had been identified and action taken, citing the arrest of a Malaysian couple found helping Mossad agents smuggle weapons from Thailand. 'Extra measures have also been taken and the Home Ministry is increasing our capabilities to monitor the situation,' he added. He said Putrajaya will continue to give voice to the atrocities and injustice happening in the Middle East and will not be swayed by external pressures. Malaysia will remain firm on the issue even if it may lead to unfair tariff impositions by US President Donald Trump, he added. 'Our stand, as a free and independent country, will remain firm despite any objections or intimidation,' Anwar said in response to a supplementary question by Syed Saddiq Syed Abdul Rahman (Muda-Muar). Syed Saddiq had asked whether Malaysia's firm position on the Middle East conflict was a factor for Trump's decision to impose unfair tariffs on Malaysian goods. Anwar said negotiations on the tariffs are still ongoing and that Malaysia had voiced its views through several meetings, including the recent one with US Secretary of State Marco Rubio. 'The US decision (on tariffs) is unfair, unilateral and goes against the World Trade Organisation's principles and existing agreements,' Anwar added. Malaysia was slapped with a 24% rate in April, which was later increased to 25%, to be enforced on Aug 1.
BusinessToday
an hour ago
- BusinessToday
MPOC Expects CPO Price Within RM4100-RM4300 Supported By Strong Soy Oil Market
Malaysian palm oil inventories climbed to an 18-month high of 2.03 million MT in June, driven by a 10.5% month-on-month decline in exports, which fell to 1.26 million MT. Despite the slowdown, June 2025 export volume remained higher year-on-year, surpassing 1.19 million MT in June 2022, 1.17 million MT in June 2023 and 1.21 million MT in June 2024. The Malaysian Palm Oil Council noted that in the first half of 2025, Kenya ranked as Malaysia's second-largest palm oil buyer, overtaking the EU27 by 21,000 MT and China by 117,000 MT. Kenya accounted for 30% of Malaysia's total palm oil exports to Sub-Saharan Africa, with full-year imports projected to reach 1.3 million MT from Malaysia. Kenya continues to stand out as a key growth market, underpinned by its rising consumption. Over 90% of Kenya's palm oil imports are consumed domestically for food purposes. Global vegetable oil prices have recovered from early-year losses, led by a sharp rebound in soybean oil, which has risen 19% since January. This outpaced gains in rapeseed oil (+6.6%) and palm oil (+3.7%), while sunflower oil remained relatively stable with a modest 1.7% increase. Soybean oil remains the top performing vegetable oil year-to-date, supported by the U.S. biofuel policy announced in mid-June, which is expected to spur demand for domestically produced feedstocks. Strong soybean oil prices have improved the price competitiveness of palm oil. As a result, Malaysian palm oil exports to India have rebounded significantly since April, narrowing the cumulative decline recorded in Q1 2025. India's monthly imports of Malaysian palm oil remained consistently above 250,000 MT in both May and June. MPOC noted that this positive momentum is expected to extend into Q3, supported by restocking ahead of the Diwali festival in mid-October and favourable prices. In the third quarter, India is projected to import around 2.9 million MT of palm oil to meet festive season demand. This firm buying interest will continue to support palm oil prices. In the U.S., soybean oil prices are expected to remain elevated through the remainder of 2025 and into 2026. According to the latest USDA projections, soybean oil use for biodiesel in U.S. is forecast to rise by 17%, from 6 million MT in 2024 to 7 million MT in 2026. For the first time, more than 50% of US soybean oil production is expected to be directed into biodiesel. In the U.S., soybean oil prices are expected to remain elevated through the remainder of 2025 and into 2026. According to the latest USDA projections, soybean oil use for biodiesel in U.S. is forecast to rise by 17%, from 6 million MT in 2024 to 7 million MT in 2026. For the first time, more than 50% of US soybean oil production is expected to be directed into biodiesel. Additionally, under the revised U.S. tax credit framework, only feedstocks sourced from North America (Canada and Mexico) qualify for the tax credit, with U.S. produced feedstocks receiving the highest incentive. This restriction is expected to keep U.S. soybean oil and Canadian canola oil prices at a premium relative to other vegetable oils globally. These policy-driven dynamics will continue to support positive sentiment across the vegetable oil market. However, MPOC added that the rising U.S. demand alone is insufficient to offset the anticipated surge in global soybean supply. South American soybean production is forecast to increase by 8 million MT in 2026, reaching 245 million MT. The ample supply is expected to weigh on soybean prices, with U.S. soybean inventories in 2026 projected to double from 2023 levels due to high carry-over stocks and a steep decline in exports to China. Looking ahead, MPOC expect CPO prices to remain firm and trade between RM 4,100 to RM 4,300 over the next month, supported by firm festive demand from India and elevated U.S. soybean oil prices. However, any rally in vegetable oil prices may be capped by abundant global oilseed supply, particularly soybeans, as there is currently no shortage of oilseeds in the market. Related
