BNM will not allow individual firm's 'systemic' effect to impact econ

Putra Jaya: Bank Negara Malaysia will not allow any "systemic" effect from an individual company to impact the country's economy, said Governor, Tan Sri Dr Zeti Akhtar Aziz."We will never comment on an individual entity, but what we have arrangements to deal with it so that no individual entity will have a systemic implication on the overall financial system of our economy.

"That is the basic principle," she said when commenting on 1Malaysia Development Bhd (1MDB)'s huge outstanding debts.

Zeti was speaking to reporters after a signing ceremony between the Government of Malaysia and the World Bank Group to open a World Bank Group Office in Kuala Lumpur here Tuesday.

Asked on the investments brought back from the segregated portfolio company (SPC) registered in the Cayman Islands, she reiterated:" We do not comment on the inviduals."

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Sabah revenue hits RM6.97 billion: Hajiji says GRS State Government may see full term

Kota Kinabalu: The Sabah Government continued its momentum in managing the economy in line with the commitment and spirit of the Sabah Maju Jaya (SMJ) when it posted record high state revenue of RM6.973 billion last year.

"In the case of any extension being provided, that's is not by Bank Negara, it is from the lenders, who are the commercial banks, they made those decision," she added.

Meanwhile, commenting on the European Central Bank quantitative easing (QE) programme, she said if the measures provided financial stability to global financial markets including Europe itself, it would than be positive for Malaysia.

"If it supports the recovery in growth and development in Europe, that is also positive.

"So, of course we will see the inflow and then reversal of the flows, and from the experience of the QE by the Federal Reserve and its tapering measures, most of us demonstrated that our financial system had reached the maturity whereby we can ride out that kind of experience," she added.

On the ringgit's current movement, Zeti said the central bank has seen this level before and it reflected events that unfolded in the global environment.

"BNM believes it would not reflect the country's strong underlying fundamentals but once the event settles down and stabilises, the ringgit will trend toward our underlying fundamentals.

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Zeti said the country's projected inflation rate of between 2.5 per cent and 3.5 per cent, highly capitalised banking system and credit growth of 10 per cent supported sustainable growth.

She added that the country's Gross Domestic Product growth for 2014 was expected to come in within the projected forecast. – Bernama.

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