Malaysia’s economic fundamentals strong, says Najib

Malaysia’s economic fundamentals are strong, Deputy Prime Minister Datuk Seri Najib Tun Razak reiterated today.

He said the country has the capacity to weather the destabilising consequences of the development in the US economy and the international financial market.

“Our banking system today is sound and strong with buffers to withstand the current financial turbulence,” said Najib, who is also Finance Minister, at a press conference here.

“The strengthened financial infrastructure and more developed financial market has increased the resilience of our financial system to external shock,” he added.

Najib said liquidity in the banking system remained ample and funding to the private sector, which grew 13 per cent in August, have continued to expand.
Non-performing loan (NPL) meanwhile is now at 2.5 per cent and has declined steadily since 2003.

Global fears have mounted since the Wall Street plunged overnight following the rejection of a US$700 billion financial bailout plan by US lawmakers. — BERNAMA