27/03/2025

Editorial T: 03-7784 6688 F: 03-7785 2625 E: sunbiz@thesundaily.com Advertising T: 03-7784 8888 E: advertise@thesundaily.com

THURSDAY | MAR 27, 2025 SCAN ME ‘Malaysia must deepen reforms’

among the major economies. “With this global growth, we expect global trade to grow between 2.7% and 3.2%. Of course, this outlook depends a lot on the uncertainties surrounding the tariff and other policies coming from the US and other major economies. “We have seen heightened volatility in the past few months in the international financial markets, which also have a spillover effect into our domestic financial markets.” Marzunisham said global develop ments influence Malaysia’s economy through three key channels. First is trade, where any global growth and trade shifts impact Malaysia’s exports due to its highly open economy. Second, financial markets, where volatility and tighter global financial conditions affect Malaysia’s financial and foreign exchange markets. Third, sentiment, where uncer tainties in the global economy can weaken business, investor, and consumer confidence. Given these factors, Malaysia’s export growth is expected to moderate in 2025, he said. M&A Securities 17th Islamic stockbroking services provider on Bursa Malaysia-i KUALA LUMPUR: Bursa Malaysia Bhd has onboarded M&A Securities Sdn Bhd as its latest Islamic Participating Organisation to provide Islamic stockbroking services on Bursa Malaysia-i. The exchange said this addition underscores its commitment, together with industry stakeholders, to expand investor access to syariah investing, while fostering a dynamic Islamic capital market. “Islamic stockbroking plays an im portant role in facilitating clients’ syariah compliant securities trading, ensuring all transactions are conducted through either a dedicated Islamic window or a full fledged Islamic brokerage. “This structure enables a clear distinction and greater clarity between Islamic trading and post-trading activities compared to that of conventional stockbroking practices,” it said in a statement yesterday. Bursa Malaysia CEO Datuk Fad’l Mohamed said this addition is timely given the increasing demand for ethical and syariah-compliant investing among investors. “Syariah-compliant equities make up the majority of Bursa Malaysia’s offerings, reinforcing the exchange’s leadership in the Islamic capital market space among peers. “Together with our brokers, Bursa Malaysia will intensify efforts to ensure the inherent breadth and appeal of our Islamic capital market is accessible to more local and foreign investors, and leveraged to foster greater market vibrancy,” he said. With M&A Securities’ inclusion, there are now 17 stockbroking firms offering Islamic stockbroking services on Bursa Malaysia-i. – Bernama

“In terms of the banking system, our banks remain strong, with strong capital and strong liquidity positions. This enables them to continue to support businesses and households through financing to support our economic activity,” Marzunisham said. He said BNM has examined the timing, scope and duration of US imposed tariffs, emphasising the fluidity of the current trade environ ment, where tariffs and trade res trictions may fluctuate. He also highlighted the impact of ongoing global conflicts as a key influencing factor. “We have factored this into our forecast, the downside, and the potential upside. In addition to making some of these assumptions into our baseline forecast, we also have several internal scenarios. This is to be prepared if the policies in the US turn out to be out of the expectation,” Marzunisham said. He added that BNM has forecast the global economy to grow between 2.8% and 3.3% in 2025, supported by positive labour market conditions, moderating inflation and less restrictive monetary policy, especially

uncertainty, it is very difficult to forecast in this environment. “Nevertheless, as policymakers, we still have to undertake this. And in doing this, what we have done is in this baseline forecast, we have incorporated some assumptions on the tariff in the US, as well as some potential retaliatory measures that have been announced,” he said. Marzunisham said BNM expects total investment to expand by 9.3% this year after growing by 12% last year. Private investment is projected to grow by 10.1% in 2025. Further, he reiterated that the domestic economy is projected to grow between 4.5% and 5.5% in 2025. Domestic demand, particularly private sector expenditure, house hold consumption and private investment, will continue to be the main driver of growth. “We do, however, recognise the considerable external uncertainties out there. “Inflation is expected to average between 2% and 3.5%. A key factor is how the government’s implement ation of the reform measures will translate into broader pressure.

o Bank Negara deputy governor cites need to address rising cost of living, strengthen social protection, improve education and healthcare systems

Ű BY JOHN GILBERT sunbiz@thesundaily.com

tection, improving the education and healthcare systems, as well as furthering efforts to attract high quality investment,” he told delegates at the 2025 BNM Governor’s Address

KUALA LUMPUR: Bank Negara Malaysia (BNM) will continue to

on the Malaysian Economy and Panel Discussion yes terday. Marzunisham said it is important to acknowledge that the current global eco nomy is highly uncertain. “We have a high level of uncertainty, and this high level of uncertainty could likely be prolonged. And given the rapidly evolving

advance economic reforms in 2025, such as improving the country’s fiscal position, strengthening prospects for quality investment and improving wages. BNM deputy governor Datuk Marzunisham Omar ( pic ) said that alongside existing BNM reforms, Malaysia should also priori tise a wider range of essential reform areas.

policy space and policy measures that are coming out, particularly from the US. “And with this high level of

“Among these are implementing reforms to address the rising cost of living, strengthening social pro

AIC 2025 aims to unlock, mobilise capital within Asean

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: The Asean Investment Conference 2025 (AIC 2025) aims to unlock and mobilise capital within Southeast Asia, said Securities Commission Malaysia (SC) managing director Datin Paduka Azalina Adham. She said the conference, to be held in conjunction with Malaysia’s chairmanship of Asean this year, reflects the bloc’s priorities of inclusivity and sustainability. “There are a lot of opportunities in Asean, as well as in Malaysia. And the attempt is to try and bring and unlock capital within the region as there’s also demand within. So it’s not that we’re looking just for funding from abroad, beyond Asean, but also within Asean, and especially the Asean+3. So the narrative really is Asean opportunities, looking at the opportunities of Asean, and trying to unlock that opportunity as well as mobilising capital towards that,” she told a media briefing yesterday. While there is no specific target figure, she said, the region’s savings rate to gross domestic product (GDP) potential and overall growth indicators point to opportunities for intra-Asean capital flows. SC chairman Datuk Mohammad Faiz Azmi said Asean’s position as the world’s fifth largest economy, with a GDP exceeding US$3.3 trillion and over 600 million people, underscores its growing influence on the global stage. “With an annual growth averaging 5%, saving rates exceeding 30% of GDP, and a young population – 60% of whom are under 35 – Asean offers a compelling investment proposition.” As chair of Asean Capital Markets Forum, Faiz said, the SC recognises the crucial role that Asean capital markets play in driving sustainable growth, fostering innovation and attracting global investments. “AIC 2025 aims to cement Asean’s standing as a premier investment destination, spotlighting it’s dynamic opportunities and fostering deeper collaboration to unlock the region’s potential for

From left: RHB Investment Bank CEO/managing director Kevin Davies, Azalina, Wan Razly and CGS International Securities Malaysia deputy CEO Khairi Shahrin Arief Baki at the media briefing.

Under the theme “Connecting Capital, Unlocking Opportunities and Driving Sus tainability”, AIC 2025 will emphasise Asean’s regional connectivity and unity as essential drivers for sustained growth. The conference will showcase the region as a leading investment destination and a compelling, sustainable asset class. The conference will be inaugurated by Prime Minister Datuk Seri Anwar Ibrahim, who will also launch the Asean Simplified ESG Disclosure Guide for SMEs in Supply Chains. The conference is expected to bring together 400 attendees, including leading policymakers, investors, financiers, business leaders and thought leaders from across the 10 Asean member states and the Asean+3 region, including key financiers from Japan, China and South Korea. AIC 2025 will serve as a catalyst for cross-border collaboration and unlocking the region’s potential.

inclusive and sustainable growth,” he added. Affin Group president and CEO Datuk Wan Razly Abdullah said its recent memorandum of understanding with MUFG Bank (Malaysia) Bhd marks a milestone in its ambition to catalyse cross-border opportunities and strengthen Asean’s financial ecosystem. “This enables us to mobilise institutional partnerships, deepen regional integration and unlock new investment flows across Asean. “Looking ahead, Affin Group will continue to support businesses and institutions through tailored solutions, financial innovation and long term value creation – helping shape a more inclusive, future-ready Asean economy,” he added. Hosted by the SC in collaboration with strategic partners, Affin Group, CGS International Securities Malaysia and RHB Banking Group, AIC 2025 will take place in Kuala Lumpur on April 8 and 9.