Important for Malaysia to strengthen resilience: Zeti

Kuala Lumpur: It is important for Malaysia to further strengthen its resilience against any uncertainties in the global economy as well as political developments that may affect growth, said Tan Sri Dr Zeti Akhtar Aziz (pic). The former Bank Negara Malaysia (BNM) governor said the country would have to build up its strength and resilience and this would require strengthening institutional buffers and internal capabilities.

"When I was at the central bank, I was there for 35 years, I have always told the staff to take political developments as a given. Why do you take it as a given? (Because) you have no control over it.

"Of course, external developments are also taken as a given because it is not within our means to influence; therefore, the most important thing to do is to build up your resilience.

"Just like your health. If your health is weak, you will be vulnerable to diseases," she said during an interview with selected media recently.

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Zeti, who left the central bank in April 2016 after 16 years at the helm, said this when asked whether the development in the domestic political scene would affect investors' sentiment.

It was reported that foreign funds had reacted to the unprecedented outcome of the country's 14th General Election by disposing RM2.48 billion of local equities a week after the May 9 election.

According to MIDF in its fund flow note on May 21, this was the heaviest weekly selldown in Malaysia since the week ended Aug 23, 2013, with a net outflow of RM2.90 billion while the first trading day after GE14 saw a net outflow of RM682.6 million.

Asked whether the country would be able to weather this transition period and uncertainties in the global economy, Zeti replied that Malaysia would manage as the country had repeatedly demonstrated its resilience.

"Yes, we can be set back but we always have the ability to bounce back.

"Why is that? It is because we have the element of resilience in our economy and in our financial system," she pointed out.

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Zeti also defended certain policies such as the reintroduction of the Sales and Services Tax effective on Sept 1, explaining that the implementation of the new tax regime was to reduce the burden and enhance the economic wellbeing of the society.

"When we formulate any policy, we need clarity relating to the objective of what is to be achieved. – Bernama

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