Japanese investments benefit Malaysia most

GEORGE TOWN: Malaysia's financial system has greatly benefited from Japanese investments through expertise transfer, knowledge,
technology and enhanced economic inter-linkages, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said today.

She
said Malaysia welcomed the continued participation of Japanese
financial institutions in the domestic financial sector and in the
Labuan International Business and Financial Centre.

As at last
month, there are four commercial banks, four insurance companies, one
reinsurance company and one joint-venture takaful operator from Japan
operating in Malaysia, she said when opening the Bank of Tokyo
Mitsubishi (M) Bhd Penang branch.

The text of her speech was read out by Assistant Governor Donald Joshua Jaganathan.

Zeti
said Bank of Tokyo Mitsubishi's decision to open its newest branch in
Penang was not only supported by the large presence of Japanese
customers but also the ongoing investment activities in Malaysia's
northern region.

She said while Malaysia's financial centre has
shifted to Kuala Lumpur, the importance of Penang as the major economic
contributor to the country's economy remains significant.

Opening
of the branch demonstrated the continued expansion of Malaysian
financial system and well supported by a fundamentally stable economy
that continues to perform during these
challenging times, he said.

Zeti
said Asia continues to be an important growth centre in the global
economy, she said, adding that eventhough growth may have moderated, it
has still remained at levels that have sustained job creation.

This was driven by domestic demand and increased connectivity among emerging economies in the region, Zeti said.

She said economic flexibility and strong financial systems have also supported this trend.

"In
Malaysia, while the slower external demand has affected our growth,
strong domestic demand and the close economic linkages in the region
have continued to underpin the steady growth path," she added. --
BERNAMA

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