KUALA LUMPUR, Jan. 23 (Xinhua) -- The Malaysian Central Bank has decided to maintain the overnight policy rate (OPR) at 3 percent.
Bank Negara Malaysia (BNM) said in a statement on Wednesday that at the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects.
"The Monetary Policy Committee (MPC) remains vigilant to ongoing developments to inform the assessment on the domestic inflation and growth outlook. The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability," it said.
Moving forward, the bank said the strength in economic activity is expected to be sustained in 2025, driven by resilient domestic expenditure.
Employment and wage growth, as well as policy measures, including the upward revision of the minimum wage and civil servant salaries, will support household spending.
The robust expansion in investment activity will be sustained by the progress of multi-year projects in both the private and public sectors, the continued high realization of approved investments, as well as the ongoing implementation of catalytic initiatives under the national master plans.
These investments, supported by higher capital imports, will raise exports and expand the productive capacity of the economy.
Meanwhile, exports are expected to be supported by the global tech upcycle, continued growth in non-electrical and electronics goods and higher tourist spending.
The growth outlook, however, is subject to downside risks from an economic slowdown in major trading partners amid heightened risk of trade and investment restrictions, and lower-than-expected commodity production, said the bank.
Meanwhile, it noted growth could potentially be higher from greater spillover from the tech upcycle, more robust tourism activity, and faster implementation of investment projects.
The bank also highlighted that Malaysian ringgit performance continues to be primarily driven by external factors.
"While financial markets could experience bouts of volatility due to global policy uncertainties, Malaysia's favorable economic prospects and domestic structural reforms, complemented by ongoing initiatives to encourage flows, will continue to provide enduring support to the ringgit," it added. ■
