Economic Views

This is a multi-part series of articles where we analyse the elements of fiscal sustainability through: i) government revenue and expenditures, ii) on– and off–government balance sheet items, and iii) innovative sustainability ratios. In this second part, we discuss the state of the country’s balance sheet. Government debts can generate positive multiplier effects when allocated …

Fiscal Sustainability (Part 2): Malaysia’s pathway to a resilient balance sheet Read More »

This is a multi-part series of articles where we analyse the elements of fiscal sustainability through: i) government revenue and expenditures, ii) on– and off–government balance sheet items, and iii) innovative sustainability ratios. In this first part, we discuss Malaysia’s fiscal health through taxes and expenditures. Fiscal sustainability enables governments to meet future public expenditure …

Fiscal Sustainability (Part 1): Building a robust tax base and containing expenditure Read More »

Global economic growth is expected to sustain a moderate level in 2024. Growth forecasts for advanced European economies remain relatively stable despite lingering weaknesses. The strength of the US economy may moderate the pace of policy rate cuts, potentially leading to a less synchronised global monetary policy easing, compared to some central banks in Europe …

Mid-Year Macroeconomic Outlook 2024: Stable global growth in a moderate easing cycle Read More »

In the previous parts of this series pertaining to ringgit realignment, we have discussed the importance of interest rates, current account surplus, and portfolio flows on the ringgit’s valuation. This final part of the series will discuss the supply of money which plays an integral role in the long-term standing of the ringgit. The price …

Ringgit realignment (Part 4): Money supply and fiscal management Read More »

In this multi-part series, we dissect drivers of currency phenomena, including: i) interest rate perceptions, ii) current account (CA) intricacies and the real economy, iii) capital flow dynamics in the financial account, and iv) money supply theories in relation to debt levels and the fiscal position. In this third part, we discuss the impact of …

Ringgit realignment (Part 3): Enhancing the attractiveness of Malaysia as an investment destination Read More »

In this multi-part series, we dissect drivers of currency phenomena, including: i) interest rate perceptions, ii) current account intricacies and the real economy, iii) capital flow dynamics in the financial account, and iv) money supply theories in relation to debt levels and the fiscal position. In this second part, we discuss the influence of the …

Ringgit realignment (Part 2): Prioritising the current account balance and foreign investments Read More »

In this multi-part series of press announcements, we dissect drivers of currency phenomena, including: i) interest rate perceptions, ii) current account intricacies and the real economy, iii) capital flow dynamics in the financial account, and iv) money supply theories in relation to debt levels and the fiscal position. In this first part, we discuss the …

Ringgit realignment (Part 1): Interest rates and currency perceptions Read More »

Global investors closely monitor Malaysia’s national plans, which play a crucial role in attracting portfolio flows and influencing financial market outcomes, including the strength of the Malaysian ringgit. These plans provide essential information regarding Malaysia’s country risk and sovereign credit risk, shaping global investors’ perceptions of financial market valuations, particularly portfolio flows in the equity …

Effective management of expectations crucial to attract global portfolio investment flows, strengthen ringgit and improve market outcomes Read More »

After successfully navigating through an environment of high interest rates to tame inflation in 2023, the global economy is expected to stay resilient amid the anticipated end of monetary tightening. However, challenges remain in the form of the lagged impact of previous rate hikes and the risk of inflation reaccelerating. The US Federal Reserve remains …

2024 Macroeconomic Outlook: Post-tightening global recovery Read More »

A country’s economic competitiveness hinges on a solid foundation of quality human capital. The MADANI “Empowering the People” economic framework anchors the government’s commitment to human capital development with measurable goals, including positioning Malaysia in the top 12 of the Global Competitiveness Index (2023: 27th) and top 25 of the Human Development Index (HDI) (2021: …

Gains in productivity and education are integral to wage policies Read More »