International reserves up by US$2.5 bln to US$97.8 billion

KUALA LUMPUR: Malaysia’s international reserves have increased by US$ 2.5 billion to US$ 97.8 billion as at Oct 31 this year, the Dewan Rakyat was told yesterday.

The Finance Ministry in a written reply yesterday said the figure was compared to US$ 95.3 billion recorded at the end of 2015.

According to the ministry, the latest reserves were sufficient to sustain 8.4 months of imports and 1.2 times of the country’s short term external debts.

The ministry was replying to a question by Datuk Abdul Manan Ismail ( BN-Paya Besar) on Bank Negara Malaysia’s reserves and the country’s current economic growth, debt and market capitalisation status as well as the diversification of the nation’s economy.

The ministry said in the third quarter of 2016, the country’s economy continued to expand with the real Gross Domestic Product (GDP) recording a growth of 4.3 per cent.

“The growth rate is encouraging as it was sustained by the domestic

The growth rate is encouraging as it was sustained by the domestic economy which is resilient with the private sector remaining as the driver of economic growth. The Gross Fixed Capital Formation (GFCF) which expanded by 2 per cent was supported by public and private investments.

economy which is resilient with the private sector remaining as the driver of economic growth. The Gross Fixed Capital Formation (GFCF) which expanded by 2 per cent was supported by public and private investments,” the ministry said.

The latest federal government debts at the end of September were RM643.6 billion or 52.2 per cent of GDP and Malaysia was categorised as a moderately indebted nation, said the ministry.

“From the total amount of debt, 96.5 per cent ( RM620.8 billion) are domestic debts, while 3.5 per cent (RM22.8 billion) are offshore borrowings,” the ministry said.

The local capital market position remained resilient based on the size of bond market, global sukuk market, the performance of the FTSE Bursa Malaysia KLCI index and the market capitalisation of Bursa Malaysia, the ministry said.

“On Sept 30, the FBM KLCI rose by two per cent to 1652.55 points and the market capitalisation expanded by six per cent. Foreign holding on the nation’s equity increases to 23 per cent,” the ministry said. — Bernama

Finance Ministry