The central bank's strategies in avoiding excessive volatility has helped make Malaysia's financial system resilient to withstand potential stresses.
Mission Chief for Malaysia of the International Monetary Fund based in Washington, Alex Mourmouras, said Malaysia's non-performing loans were relatively low and asset quality has been improving over the years.
"Nevertheless, ongoing global volatility, high household debts and other risks warrant continued vigilance.
"In that context, the mission welcomes steps taken by authorities to strengthen financial supervision. Since November 2010, BNM (Bank Negara Malaysia) has implemented a series of macroprudential policy measures to slow down property price inflation and credit growth," he told in a media briefing on the IMF findings today.
Also present was Treasury Secretary-General, Tan Sri Dr Mohd Irwan Serigar Abdullah.
The IMF findings were based on the fund's exchange of views with Malaysian government officials, BNM and representatives from the private sector, think thanks and academia in Kuala Lumpur and Penang recently.
A report will be prepared and presented to the executive board of the IMF for discussions in February, he said.
Mourmouras said the macroprudential policy measures had been complemented by measures in the 2014 Budget to increase property taxes while providing support for low-income buyers.
"The Fincancial Services Act, which came into effect in July 2013, provides BNM with additional powers to supervise financial conglomerates.
"We commend the authorities for implementing an extensive agenda of structural reforms to strengthen growth as seen in a number of multi-year transformation programmes," he said.
Of critical importance was the programme to improve educational attainment to meet the talent needs of the economy, he said.
Overall, Mourmouras said, Malaysia's economy was on the right track via the various government economic transformation programmes.
Meanwhile, Mohd Irwan said the positive IMF findings showed Malaysia was on the right track via the government Economic Transformation Programme in providing a long-term sustainability.
However, Malaysia could not rely and be dependent on commodities in order to increase its revenue and strengthening its fiscal position, Mohd Irwan said. – Bernama
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