Malaysian economy on track for 4% to 5% growth, central bank governor says
Governor of the Central Bank of Malaysia Abdul Rasheed Ghaffour speaks during a press conference at Kuala Lumpur August 18, 2023. REUTERS/Hasnoor Hussain
KUALA LUMPUR, July 28 : Malaysia's economy is on track to grow by between 4 per cent and 5 per cent this year despite the global energy supply shock from the Middle East conflict, its central bank governor said at a forum on Tuesday.
• Economic growth will likely be towards the upper end of the forecast range as inflation remains manageable, Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said.
• The central bank will continue to play its part in maintaining price stability as global uncertainties persist and energy prices remain high, he said.
• BNM's policy stance remains in line with the domestic growth and inflation outlook, Abdul Rasheed added.
• BNM left its key interest rate unchanged at 2.75 per cent for the sixth straight policy meeting in July.
• Headline and core inflation averaged 1.7 per cent and 2.1 per cent, respectively, over the first five months of the year.
• Although energy prices have soared, the government has maintained subsidies for fuel and diesel.
• The government may spend up to 40 billion ringgit ($9.8 billion) on fuel subsidies this year, more than double its initial budget allocation, if energy prices remain elevated.
($1 = 4.0830 ringgit)
