Structural reforms continue to underpin Malaysia's resilience, says Bank Negara Governor
KUALA LUMPUR: Structural reforms continue to underpin Malaysia's resilience, strengthening fiscal discipline, attracting high-quality investment and expanding economic opportunities, said Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour today.
He said progress in strategic areas such as energy transition, digital infrastructure, and high-value manufacturing is laying the foundation for a more inclusive and competitive economy.
"These reforms are important, not just for growth but also for currency stability. This is especially vital in today's environment, where shocks are more frequent, and volatility is increasingly becoming a norm,' he said in his opening address at the MyFintech Week 2025 here today.
Abdul Rasheed said the ringgit, like many emerging market currencies, has felt the weight of these uncertainties from time to time.
"Yet this year, we have seen some encouraging signs where the tailwind from reforms has, in part, led to renewed investor interest and provided support to the ringgit,' he added.
As of market closing yesterday, Abdul Rasheed said the domestic currency has appreciated by 5.55 per cent against the US dollar and 1.8 per cent against Malaysia's major trading partners.
"Our sound economic fundamentals and coordinated efforts to promote balanced and orderly currency flows will continue to support the ringgit," he said, adding that the central bank had revised the economic outlook forecast to a range of between 4.0 per cent and 4.8 per cent this year, reflecting heightened uncertainties on global trade.
He noted that the economic outlook remained supported by resilient domestic demand and sustained investment in infrastructure for strategic sectors under the national development plans.
Meanwhile, inflation is projected to remain moderate, with headline inflation expected to average between 1.5 per cent and 2.3 per cent in 2025.
"This revision in projection reflects the continued easing in cost and a steady demand outlook. In this environment, the impact of domestic policy measures is expected to remain contained,' Abdul Rasheed said. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Express
11 hours ago
- Daily Express
Tariff impact: Recession is unlikely but growth may dampen
Published on: Saturday, August 09, 2025 Published on: Sat, Aug 09, 2025 By: Bernama Text Size: Zafrul said both Malaysia and the US have agreed on key terms of a reciprocal tariff agreement that comes into effect today, Aug 8. OSAKA: Malaysia's economic growth is expected to slow down following the implementation of the United States (US) tariff. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said that while the impact may not be severe enough to trigger a recession, the country would experience slower-than-expected growth. This would be in line with Bank Negara Malaysia's (BNM) recent revision of its 2025 gross domestic product (GDP) forecast from 4.5–5.5 per cent to 4.0–4.8 per cent. Advertisement 'The impact may not lead to a recession, but there is an impact, where growth is achieved but at a lower rate,' he said when asked about how soon the impact can be seen following the tariff implementation. Tengku Zafrul was speaking to the Malaysian media at the Malaysia Pavilion during the World Expo Osaka 2025, here today. He said both Malaysia and the US have agreed on key terms of a reciprocal tariff agreement that comes into effect today, Aug 8. He said the deal covers six main chapters and has already received input from Malaysia, with the final joint statement now pending confirmation from the US side. Advertisement Meanwhile, for sectors such as electrical and electronics (E&E) and pharmaceuticals, which are currently enjoying zero tariffs, Tengku Zafrul noted that there are growing concerns regarding global demand, particularly as businesses start to feel the impact of increased costs. 'A lot of frontloading happened. A lot of companies actually brought in or bought stocks and even finished goods. So that means some of the companies are able to take the hit rather than pass it to the consumers. 'But as the stocks deplete or as the raw materials or the old supply chain knock-on effect comes in, I am not sure whether the companies can absorb the total cost,' he said. If suppliers or producers cannot absorb the increase, they will have to pass it to buyers. 'Can the buyers afford it? Maybe they can, but they will not buy as much. So, this is the knock-on effect on the economy, but that is in theory, and we will see,' he said Tengku Zafrul said the US makes up just 15 per cent of Malaysia's total trade portfolio and remains the country's largest export destination, with exports reaching nearly RM200 billion in 2024, of which 60 per cent is from the E&E sector. He said Malaysia remains competitive compared to regional peers, with the average tariff levels not far off from countries like Taiwan (20 per cent). However, he noted the scale of the US economy, which accounts for nearly 27 per cent of global gross domestic product, hence any slowdown there will have far-reaching consequences. 'Some countries may be hit harder than others, depending on how open their economies are and how heavily they depend on trade with the US,' he added. On former Prime Minister Tun Dr Mahathir Mohamad's claims about Malaysia's tariff negotiations with the US, Zafrul said it was his and the ministry's responsibility to provide accurate information to all parties. 'I believe it is our duty as the government to present the true picture of the tariff situation. 'We have already issued a statement previously. And yesterday, I also corrected the inaccurate facts (raised by Dr Mahathir). 'Perhaps he got the wrong information source... we are just there to correct the facts,' he added. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Sun
14 hours ago
- The Sun
Cyberport Leads Start-ups to MyFintech Week in Malaysia
HONG KONG SAR - Media OutReach Newswire - 8 August 2025 - Cyberport led a delegation of its FinTech start-ups to participate in MyFintech Week 2025 (MyFW 2025), held in Kuala Lumpur from 4 to 7 August. During the event, Cyberport witnessed its community start-ups signing multiple Memorandum of Understanding (MoUs) with international and local FinTech partners, promoting cross-border innovation and strengthening ties between Hong Kong and the ASEAN region in FinTech and innovative technology applications. Cyberport led a delegation of its FinTech start-ups to participate in MyFintech Week 2025, held in Kuala Lumpur from 4 to 7 August. During the event, Cyberport witnessed its community start-ups signing multiple Memoranda of Understanding with international and local FinTech partners, promoting cross-border innovation and strengthening ties between Hong Kong and the ASEAN region in FinTech and innovative technology applications. Themed 'Ideate, Innovate, Co-create: Shaping the Future of Finance,' MyFW 2025 focused on regional collaboration and reshaping the financial landscape to drive a more innovative and inclusive future. Cyberport organised a series of exclusive side events throughout the week, including: a start-up pitch session showcasing innovative solutions to Malaysian and regional investors; panel discussions fostering in-depth exchanges between Hong Kong and local FinTech ecosystems; and MoU signing ceremonies for five cross-border partnership agreements. Among these partnerships was the launch of a groundbreaking digital insurance programme with the potential to benefit over 100 million users, underscoring Hong Kong's pivotal role as a 'super connector' and 'super value-adder' in advancing regional FinTech collaboration. Simon Chan, Chairman of Cyberport, said, 'As a key economy in ASEAN, Malaysia is experiencing rapid growth in FinTech, offering significant opportunities for Hong Kong's technology enterprises to expand into the ASEAN market. Cyberport, as Hong Kong's digital technology hub and key incubator, is committed to connecting local start-ups with regional opportunities, helping them showcase their innovative capabilities and explore international markets. By leading our start-ups to MyFW 2025, we aim to deepen I&T exchange between Hong Kong and ASEAN, further strengthening Hong Kong's position as a regional digital economy and FinTech hub.' Cyberport Start-ups Sign Multiple MoUs in Malaysia Cyberport start-up Coded Solution, a blockchain project consulting and Blockchain as-a-Service (BaaS) technology service provider, has parented with Malaysia's leading FinTech company VSure Tech to officially launch the 'Flexi Benefits' pilot programme. This initiative marks a significant integration of the traditional insurance industry with Web3.0 blockchain technology. The programme will be trialled with SMEs on the platform and is expected to expand across Southeast Asia. It adopts an on-demand, embedded insurance model that offers flexible coverage tailored to business needs. Leveraging VSure's extensive regional partner network in Southeast Asia, the programme has the potential to reach over 100 million users, demonstrating substantial scalability. In the area of green and sustainable finance, Coded Solution signed an MoU with Malaysian e-payment provider AsiaPay Malaysia to introduce the Green Assets Reward Program (GARP) — a tokenised carbon credit reward solution—to the Malaysian market. The GARP programme will officially launch in Hong Kong during 'Hong Kong Green Week' on 11 September, followed by its promotion in Malaysia and other regional markets. The initiative aims to showcase Hong Kong's successful green finance innovation model to Malaysia and the broader ASEAN region. In addition, the two parties plan to sponsor a recent Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme with Bizteg Solutions Limited, under the Carbon Trading Analytics and Technology category. At the same time, Coded Solution signed an MoU with Sinegy DAX Sdn Bhd, Malaysia's first homegrown and regulated digital asset exchange, to jointly develop a secure and user-friendly platform for secondary market trading of tokenised financial products. This collaboration will introduce new investment opportunities in innovative financial products, injecting vitality into capital markets and expanding investor access to asset tokenisation in the region. Cyberport incubatee BRDGX, a cross-border payment solutions provider, has signed an MoU with global payment service provider Visa Direct. The collaboration aims to blends Visa's global network with BRDGX's expertise in local currency enablement for Southeast Asia, regulatory compliance, and payment orchestration—empowering businesses to make faster, more secure cross-border transactions. Supported by the Cyberport Incubation Programme (CIP), BRDGX has successfully expanded into multiple Southeast Asian markets, with Malaysia as a key growth market, showcasing Cyberport's commitment and strategic support for its community start-ups and FinTech innovation. Another Cyberport start-up, BlueOnion, a FinTech and RegTech solution provider, signed an MoU with ESG Malaysia. The agreement covers multiple areas, including ESG capacity building and training, policy advocacy and engagement, and pilot programme development aimed at advancing corporate's ESG awareness and sustainable business practices. BlueOnion is recognised for its unified FinTech and RegTech platform, excelling in sustainability data collection, greenwashing detection, and compliance workflow automation. This partnership reflects a shared commitment to advancing sustainable business practices in Southeast Asia and supporting the establishment of regional ESG standards. Cyberport Hosts Exclusive Side Events to Support Start-ups Expanding into the Southeast Asian market Cyberport hosted the 'MyFintech Week 2025 – Cyberport Side Event' on 4 August, with support from the Fintech Association of Malaysia (FAOM), Malaysia Digital Economy Corporation (MDEC), Invest Hong Kong (InvestHK), and the Securities Commission Malaysia. The programme featured start-up pitches, pilot programme launches, MoU signing ceremonies, and two panel discussions on 'Bridging Traditional & Digital Finance' and 'Financial Resilience and Tech Inclusion for an Aging Society. These panels included contributions from senior representatives of Vsure, CoKeeps, KAMI, Sunway Sanctuary, Care Concierge, and ＭHub. Cyberport representatives also attended MoU signing ceremonies on 5 August and facilitated investor meetings on 6 August with GoBi Partners, The Hive, HeliCap, Artem Ventures Sdn Bhd, and Vynn Capital. These meetings introduced innovative solutions from Hong Kong FinTech start-ups to Malaysian investment institutions. Through these activities, Cyberport aims to lay a strong foundation for its start-ups' growth in Malaysia, further enhancing Hong Kong's FinTech influence in Southeast Asia. Cyberport is Committed to Fostering the FinTech Ecosystem, Strengthening its Role as 'Super Connector' Cyberport is actively expanding its overseas network and has signed cooperation agreements with innovation institutions from multiple countries such as Malaysia, Thailand, South Korea, Japan, and the Middle East. It is actively promoting the establishment and development of local start-ups in the ASEAN market and has achieved significant results. To date, over 80 Cyberport companies have successfully entered Malaysia and the broader ASEAN market, including markets such as Singapore, Indonesia, Thailand, the Philippines, and Vietnam. As Hong Kong's largest FinTech community, Cyberport is home to over 440 FinTech enterprises spanning virtual assets, digital banking, electronic payments, wealthtech, and insurtech. In alignment with national and HKSAR government strategies to actively expand into Middle Eastern and Southeast Asian markets, the delegation to Malaysia further reinforces Cyberport's role as a bridge connecting Hong Kong's vibrant FinTech ecosystem with regional markets. Looking ahead, Cyberport is committed to strengthening its role as a catalyst for collaboration between ASEAN and Hong Kong. It will continue to support park companies in expanding into Mainland China and other high-potential, high-growth overseas markets, while also attracting top talent and leading tech enterprises from abroad to develop in Hong Kong. Together, these efforts will drive innovation and technology development, solidifying Hong Kong's position as both a 'super connector' and a 'super value-adder.'
The Star
16 hours ago
- The Star
Storm clouds over trade
Malaysia on display: Tengku Zafrul (in green) with Sarawak Deputy Premier Datuk Awang Tengah Ali Hasan (third from right) looking at the Smart City model at the Malaysia Pavilion, World Expo 2025 in Osaka, Japan. OSAKA: While the tariffs set by the United States may not trigger a recession, they are nonetheless expected to cause lower growth globally, says Tengku Datuk Seri Zafrul Abdul Aziz. On weathering the tariff imposed on Malaysia, the Investment, Trade and Industry Minister said the country remains competitive compared to regional peers. However, he noted that given the scale of the US economy, representing nearly 30% of global gross domestic product (GDP), any slowdown will have far-reaching consequences. 'Some countries might get hit harder than others, depending on how open their economies are, and how big a trading partner the United States is to them,' said Tengku Zafrul, who added that trade with the US accounts for around 15% of Malaysia's exports. 'Our trade with other markets is 85%. Having said that, the United States is our largest export market, exporting close to RM200bil in 2024,' he told reporters after visiting the Malaysia Pavilion at the World Expo 2025 here yesterday. Tengku Zafrul said Malaysia is already forecasting a lower growth rate for the year, pointing to Bank Negara's new GDP growth forecast. On July 29, the central bank announced a growth forecast of 4% to 4.8% for Malaysia, a downgrade from the previous projection of 4.5% to 5.5% growth rate. Tengku Zafrul said another concern would be on whether the tariffs would affect demand for goods. 'As the price goes up, and if suppliers or producers cannot absorb the increase, they will have to pass to the buyers. 'And when you pass to the consumers, can they afford it? Or maybe they can, but they will not buy as much. This is the knock-on effect on the economy,' he said. On a possible tax to be imposed on Malaysia's semiconductor exports to the US, Tengku Zafrul said his ministry had checked with its counterpart, and no formal decision has been made, with investigations under Section 232 of the Trade Expansion Act against certain Malaysian companies still ongoing. 'There is no executive order signed by the President (Donald Trump). What we have heard so far is just the statement he made during his meeting with the CEO of Apple (Tim Cook),' he said. Trump had said he planned to impose 100% tariffs on tens of billions of dollars of imported semiconductors used in consumer electronics and other products. However, he also indicated he would not hit companies that commit to making chips in the United States with this form of tariff. The Trade Expansion Act allows Trump to impose tariffs or other import restrictions if a product is found to threaten US security. On another matter, Tengku Zafrul said he has to clarify Tun Dr Mahathir Mohamad's criticisms of Malaysia's recent trade agreement with the United States, not as an act of hitting back at the former prime minister, but to provide a factual account of the matter. 'Perhaps he (Dr Mahathir) got the facts from wrong sources. So I took the liberty to correct it,' he said. Dr Mahathir, among others, had claimed that Malaysia was removing all taxes from 11,000 US products in return for the reduction in US tariffs imposed on Malaysia. Tengku Zafrul explained on social media that only 60.4% of the tariff lines will be zero-rated, and not 100% as Dr Mahathir claimed. The former prime minister also questioned a supposed commitment by Malaysia to supply unprocessed rare earth to the US at a low return. To this, Tengku Zafrul said that whether it is rare earth or other strategic minerals, there is no exclusive agreement to sell directly to any country, adding that Malaysia's current policy mandates that rare earths must be processed domestically before being exported. 'In this world of misinformation, it is important that we put our version out there, which in this case, is the truth,' he said.
