The Business Times
business-time-50
SUBSCRIBERS

Malaysia: Finding the right policy mix to balance inflation and growth

google-preferred-sourceAdd BT as a preferred source
Published Fri, Nov 10, 2023 · 05:00 AM
    • Malaysia has been hit hard by high global commodity and food prices, like its neighbouring economies. At the same time, the ringgit has been kept broadly at par with other regional currencies despite relatively low interest rates.
    • Malaysia has been hit hard by high global commodity and food prices, like its neighbouring economies. At the same time, the ringgit has been kept broadly at par with other regional currencies despite relatively low interest rates. PHOTO: REUTERS

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    THE post-pandemic era has been very challenging for central bankers worldwide. With the return of high inflation in 2022 after two decades of calm and serenity, “higher for longer” has become a new theme as the US Federal Reserve vowed to fight inflation. This has sent the US dollar soaring and emerging-market (EM) currencies plunging.

    Asian EMs, which were just coming out of a pandemic downturn, were caught between a rock and a hard place: tightening policy to contain inflation which could derail the nascent economic recovery, or maintaining an accommodative policy to support growth which could lead to accelerating inflation.

    In addition, the region was faced with downside risks to growth from a potential downturn in the United States and Europe, as the Fed and the European Central Bank jacked up their policy rates to anchor inflation.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Malaysia economyAsean BusinessAsean

    Share with us your feedback on BT's products and services

    Feedback

    TRENDING NOW

    Air India has been one of the foreign carriers most affected by the outbreak of hostilities in the Middle East.

    Air India asks Tata, Singapore Airlines for funds after US$2.4 billion loss

    In this economy, the smartest bets might no longer be sitting an ocean away, but are waiting right here at home.

    ‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival

    Malaysia Madani, or Civil Malaysia, is Prime Minister Anwar Ibrahim's slogan encapsulating positive values (such as humanity and strong governance) that would shape policy direction. But the "corporate mafia" claims have now cast the spotlight on governance credibility.

    From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?

    Malaysia ranks 23rd globally on the Milken Institute’s global opportunity index.

    South-east Asian markets account for 8.8% of global capital inflows from 2021 to 2024: report

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More