The government could roll out more fiscal stimulus to keep the country’s economic recovery on track, said Finance Minister Tengku Zafrul Aziz. This is amid growing concerns that the second movement control order (MCO) announced in several parts of the country could hamper efforts to contain the economic fallout from Covid-19.
In a statement, Tengku Zafrul said that there is sufficient domestic liquidity for additional fiscal stimulus to support lives, livelihoods, and businesses where necessary. “In fact, the Ministry of Finance has begun considering various measures to support the rakyat and businesses during this period. We will not compromise on the rakyat and businesses’ well-being,” he said.
According to Tengku Zafrul, Malaysia has a resilient capital market ecosystem, supported by ample liquidity and proper market management measures in place to manage shocks. He added that the capital market will remain open throughout the emergency and lockdown period to support and facilitate trading and investment with all regulatory functions in place.
“The continued operations of the capital market are important to support the resilience and recovery of the Malaysian economy, as well as help investors manage their risks and opportunities during this period,” he explained. “Clearing funds, margins and deposits arrangements are also in place to manage clearing and settlement risks.”
Similarly, financial institutions and markets will also continue as usual, with services remaining available and accessible to borrowers. “Bank Negara Malaysia will actively monitor conditions in the financial markets to ensure that there is sufficient liquidity in the foreign exchange, bond and money markets; and that market conditions remain orderly,” the minister elaborated.
Finally, the finance minister concluded that Malaysia’s “economic fundamentals” remain strong to enable an effective response to the pandemic.
(Source: Malay Mail)