Malaysia has the tools to survive Bursa downturn
Page 1 of 1
Malaysia has the tools to survive Bursa downturn
PUTRAJAYA: The government has specific instruments to overcome the negative impact of Standard & Poor’s downgrade of the United States’ credit rating from triple A to AA-plus, says Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop.
It is the first time the US credit rating has been lowered since the country won top ranking in 1917.
Nor Mohamed said the government had for a very long time adopted its own principles in managing the economy and these were not based on ideology.
“Malaysia is an open economy. Of course we will receive some negative spill-over effect from the downgrade.
“But what happened is that equity markets worldwide crashed, including the local bourse, which succumbed to the pressure yesterday and wiped out another 10% of market capitalisation today,” he added.
Nor Mohamed said the 10% slide was not that significant as Bursa Malaysia had increased by 50%. “So, the fall can be taken as a correction after the recent gains. So it is not really an issue,” he said in an interview here today.
News of the downgrade saw share markets plunging across the globe, including Malaysia.
Nor Mohamed said Malaysia was more flexible compared with the United States and Europe, as it managed the economy more practically and according to specific needs.
“In this instance, we have to spend more to create consumer spending and undertake more export oriented promotions. The government has already given a bonus to enhance domestic consumption,” he added.
Besides, economic diversification will also play an important role in making Malaysia less dependent on Europe and the United States for export markets.
Nor Mohamed also said the Economic Transformation Programme (ETP), Government Transformation Programme and National Key Result Areas were among the catalyst to spur the economy.
“We have created a system which is managed comprehensively. We use investors’ funds, from both domestic and foreign, and we don’t have problems in securing bank loans. Our banking system is flushed with billions of ringgit.” — Bernama
It is the first time the US credit rating has been lowered since the country won top ranking in 1917.
Nor Mohamed said the government had for a very long time adopted its own principles in managing the economy and these were not based on ideology.
“Malaysia is an open economy. Of course we will receive some negative spill-over effect from the downgrade.
“But what happened is that equity markets worldwide crashed, including the local bourse, which succumbed to the pressure yesterday and wiped out another 10% of market capitalisation today,” he added.
Nor Mohamed said the 10% slide was not that significant as Bursa Malaysia had increased by 50%. “So, the fall can be taken as a correction after the recent gains. So it is not really an issue,” he said in an interview here today.
News of the downgrade saw share markets plunging across the globe, including Malaysia.
Nor Mohamed said Malaysia was more flexible compared with the United States and Europe, as it managed the economy more practically and according to specific needs.
“In this instance, we have to spend more to create consumer spending and undertake more export oriented promotions. The government has already given a bonus to enhance domestic consumption,” he added.
Besides, economic diversification will also play an important role in making Malaysia less dependent on Europe and the United States for export markets.
Nor Mohamed also said the Economic Transformation Programme (ETP), Government Transformation Programme and National Key Result Areas were among the catalyst to spur the economy.
“We have created a system which is managed comprehensively. We use investors’ funds, from both domestic and foreign, and we don’t have problems in securing bank loans. Our banking system is flushed with billions of ringgit.” — Bernama
hlk- Moderator
- Posts : 19013 Credits : 45112 Reputation : 1120
Join date : 2009-11-14
Location : Malaysia
Similar topics
» Consolidation on Bursa Malaysia set to continue
» Malaysia has no more tools left to tackle financial crisis, says economist
» Kenanga ups Bursa Malaysia to outperform
» Bursa closed on Malaysia Day
» BURSA MALAYSIA PUT WARRANTS HA / HB
» Malaysia has no more tools left to tackle financial crisis, says economist
» Kenanga ups Bursa Malaysia to outperform
» Bursa closed on Malaysia Day
» BURSA MALAYSIA PUT WARRANTS HA / HB
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
|
|