KUALA LUMPUR: The structural reforms set in place have collectively strengthened the ability of the Malaysian financial system to weather intense bouts of volatility and to adjust in an orderly manner, says Prime Minister Datuk Seri Najib Razak.

“The recent global financial crisis has shown that our capital market and banking system continued to function unimpaired, with no disruptions or failures recorded.

“The resilience has enabled our financial system to fulfil, without interruption, its most important function – as a critical enabler for economic development.

“By serving as a source of long-term financing to complement the banking sector, the Malaysian capital market has provided RM376 billion through initial public offerings and bond issuances since 2012,” said Najib in his keynote address, here, today.

Speaking at the World Capital Markets Symposium today, he added the achievement has resulted into capital formation and job creation in infrastructure, telecommunications and agriculture sectors.

“The convergence of these efforts with favourable macroeconomic conditions has enabled Malaysia to record more than 20 years of robust growth.

“Despite lingering perceptions of Malaysia being reliant on mining and commodities, our economy has in fact diversified to the extent that the services, manufacturing and construction sectors now account for two-thirds of the economy,” he added.

Najib also emphasised on the importance that Malaysia adjusts to the new norm of lower oil and commodity prices as well as the slowing down of China and the lessening of global liquidity.

“While I am confident of the strength and robustness of our financial system, we cannot rest on our laurels as the prices of commodities and oil are no longer what they were.

“The world’s second largest economy is showing signs of slowing down and global liquidity may be drying up. This is the ‘new normal’,” said Najib prior to launching the two-day symposium.

– http://www.nst.com.my/