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Page 19 - நிதி ஸ்திரத்தன்மை விமர்சனம் News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Bank Negara announces further relaxation of forex policy

The central bank will be lifting the export conversion rule, which will allow resident exporters to manage their own export conversions according to their foreign exchange cash flow needs. Secondly, exports will be allowed to settle domestic trade in foreign currency with other resident corporates operating in the global supply chain. KUALA LUMPUR: Bank Negara has announced five new measures to further liberalise the foreign exchange policy (FEP) to allow greater flexibility for businesses and to foster a conducive environment in attracting foreign direct investment (FDI) to Malaysia. The central bank will be lifting the export conversion rule, which will allow resident exporters to manage their own export conversions according to their foreign exchange cash flow needs.

Sustained income recovery crucial

PETALING JAYA: The country’s household debt levels remain elevated as at end-2020, with the lower-income population continuing to be financially stretched amid the weakness in economic conditions. In its Financial Stability Review for the second half of 2020, Bank Negara said borrowers earning less than RM3,000 monthly faced low financial buffers and substantially higher leverage. “Borrowers earning less than RM5,000 monthly also appear to be showing some signs of financial stress as observed from the profile of households seeking repayment assistance. “These borrowers are likely to face continued challenges in 2021, given an uneven recovery in the labour market. “Repayment assistance programmes by banks and government relief measures continued to provide support to households in distress, easing their cashflow constraints as they recover from income shocks and staving off more severe damage to both the financial system and the economy, ” according to the central bank.

Malaysia s household debt-to-GDP ratio surges to new peak of 93 3%

KUALA LUMPUR (April 1): Malaysia s household debt-to-Gross Domestic Product (GDP) ratio surged to a new peak of 93.3% as at December 2020 from its previous record high of 87.5% in June 2020, according to Bank Negara Malaysia (BNM). BNM said this is mainly because growth in the nation’s household debt had normalised to pre-pandemic levels in the second half of 2020 (2H20), but the GDP remained below pre-Covid-19 levels. A concern over high household debt is that it may lead to a rapid deleveraging by households in the aftermath of a crisis, thus dampening or derailing economic recovery, BNM warned in its Financial Stability Review for Second Half 2020 report released yesterday.

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