Download 3% in 2013

Taklimat
Laporan Tahunan 2012 dan
Laporan Kestabilan Kewangan
dan Sistem Pembayaran 2012
Gabenor Bank Negara Malaysia
20 Mac 2013
1
The Malaysian economy delivered faster and higher
quality growth in 2012
Contribution to growth (ppt)
11
9
5.6%
7
5.6
5
3
1
-1
-3
-5
2008
2009
2010
2011
Private Investment
Private Consumption
Public Investment
Public Consumption
Net Exports
Stocks
p preliminary
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
2
2012p
Key highlights
•
Strong growth of 5.6% amid challenging external environment
•
Robust domestic demand underpinned by strong investment
and consumption activity
•
Low headline inflation of 1.6%
•
Resilient external position
•
Capital flows remain well intermediated
3
Global growth to be sustained in 2013
Global growth projection for 2013
2011
2012
2013f
Annual change (%)
• Modest upturn in 2013
- Improvements in advanced economies
although overall growth remains weak
World GDP
3.9
3.2
3.5
World Trade
5.9
2.8
3.8
US
1.8
2.2
2.0
Euro area
1.6
-0.6
-0.2
Japan
-0.6
2.0
1.2
Developing Asia 1/
8.0
6.6
7.1
PR China
9.3
7.8
8.2
- Sharper-than-expected spending cuts in US
ASEAN-5 2/
4.5
5.7
5.5
- Re-intensification of European sovereign
debt crisis
Note: 2013 projections based on IMF
1/: Asia ex-NIEs
2/: Indonesia, Malaysia, Philippines, Thailand and Vietnam
- Strong growth in emerging economies,
particularly in Asia, underpinned by domestic
demand and gradual recovery in exports
- Modest increase in global inflation
• Downside risks remain high
Source: National authorities and IMF World Economic Outlook (January 2013 Update)
4
Advanced economies: Growth prospects dependent on
resolution of structural concerns
1
High unemployment rate
2 Continued deleveraging activity
3 Mild credit conditions
Unemployment rate (%)
Credit to private sector (yoy, %)
15
4
10
3
2
5
1
0
0
-5
-1
Sources: National authorities, Haver and IMF
5
Dec-12
Jun-12
Dec-11
Jun-11
Dec-10
Jun-10
Dec-09
Jun-09
-3
Dec-08
-15
Jun-08
-2
Dec-07
-10
Significant contribution of EMEs to global growth
Contribution to global growth (ppt)
6
Global growth
5
4
Adv.
Economies
3
Other EMEs
2
EM Asia
1
0
-1
-2
-3
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Advanced economies includes G7 economies, euro area, Australia , New Zealand, Israel and NIEs
Developing Asia includes China, South Asia and Southeast Asia
e estimate
f forecast
Source: IMF World Economic Outlook October 2012, BNM calculations
6
2010
2012e
2014f
2016f
Asia: Domestic sources of growth complemented by a
gradual recovery in exports
Emerging Asia-9
Contribution to growth (ppt)
10
• Domestic demand remains
main contributor to growth
8
6
• Investment activity supported
by infrastructure projects
4
2
• Higher intra-regional demand
0
Net exports
Investment
Consumption
Real GDP
4Q 2012
3Q 2012
2Q 2012
1Q 2012
4Q 2011
3Q 2011
2Q 2011
1Q 2011
-2
Source: National authorities and Bank Negara Malaysia calculations
7
Global inflation expected to remain modest
Modest increase in commodity prices
Contained inflationary pressures
Index (Jan ’03 = 100)
Annual change (%)
500
450
Metals
400
EA-9
350
UK
300
Euro area
Crude oil
250
200
US
Food
150
100
50
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
0
Sources: IMF and Haver
8
Monetary policy remains accommodative
Advanced economies continued to adopt
quantitative easing measures…
…while several regional economies maintain
accommodative policy stance
Central bank balance sheet to GDP ratio (%)
Key interest rates (%)
40
10
35
BOJ
30
ECB
25
8
BOE
P.R. China (6.00%)
6
Indonesia (5.75%)
20
Fed
15
Philippines (3.50%)
4
Malaysia (3.00%)
Korea (2.75%)
Thailand (2.75%)
10
2
5
Chinese Taipei (1.875%)
9
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jan-08
Source: National Authorities and BNM calculations
Jul-08
0
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jul-08
Jan-08
Jul-07
Jan-07
0
The Malaysian economy to remain on a steady growth
trajectory of 5 − 6% in 2013
Annual
change (%)
8
7
6.0%
6
5
5.6%
5.0%
4
• Domestic demand will
continue to anchor growth
• Private investment and
consumption to remain firm
3
2
• Gradual improvement in
external demand will further
support growth
1
0
-1
-2
2009
p preliminary
2010
2011
2012p
2013f
f forecast
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
10
Domestic demand continues to anchor growth,
driven by private sector activity
2012p
2013f
Annual change (%)
Domestic demand
(excluding stocks)
Private sector
Consumption
Investment
Public Sector
Consumption
Investment
Net exports
10.6
8.1
10.7
7.7
22.0
10.3
5.0
17.1
-29.4
9.1
7.1
15.6
5.4
3.6
7.5
-19.1
Exports of goods & services
0.1
1.8
Imports of goods & services
4.5
3.9
5.6
5.0 ~ 6.0
Real GDP
p preliminary
f forecast
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
11
Private investment to remain robust…
Real private investment by sector
Real private investment
Annual
change (%)
25
% share to total
private investment
22.0
20
15
15.6
15.5
13.6
100
80
45.4
46.6
45.5
40
31.2
29.3
27.9
0
20
15.6
3.1
18.3
3.3
-5
0
14.7
3.0
2011
2012p
2013f
12.2
10
5
60
Avg. (‘01-’12): 6.7%
5.1
0.1
-7.4
-10
2006
2007
2008
2009
2010
2011 2012p 2013f
p preliminary f forecast
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
12
Services
Manufacturing
Construction
Agriculture
Mining
…driven by implementation of projects with long
gestation periods
Sectors
(% share pvt. inv.)
Cost
(RM bn)
Projects
Years
‘11
‘12
‘13
‘14
Mining1
Mining
(16% share)
Gumusut Kakap
>5.0
2007-13
Malikai
>3.0
2009-15
Kebabangan Cluster
>3.0
2008-14
Polycrystalline silicon plant in Samalaju
>6.0
2009-15
Automotive and related components
>2.5
Medical devices
>2.0
2010-21
Transportation - Aircraft purchase
>3.0
2011-17
Utilities - Tanjung Bin
>6.0
2012-16
Iron Ore Distribution Hub
>4.0
2012-14
New hospitals and expansion
>1.5
2011-15
Broadband expansion - 4G
>5.0
2011-14
Manufacturing
Manufacturing
(29% share)
2012-14
Services
Services
(47% share)
p preliminary f forecast
1
Public and private investment projects will be separated accordingly in National Account compilation based on the respective contribution of the
project partners
Source: BNM compilation and estimates based on publicly available information which is referred to at the time of publication
13
Private consumption to remain firm
Real private consumption
Annual
change (%)
12
• Consumption growth
underpinned by:
10.4
10
9.1
8
6
8.7
6.6
6.6
7.1
7.7
- Sustained income growth
7.1
- Stable employment prospects
Avg. (‘90-’12): 6.6%
4
2
0.6
0
2005 2006 2007 2008 2009 2010 2011 2012p 2013f
p preliminary f forecast
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
14
Labour market conditions to remain favourable
Annual
change (%)
8
Private sector salary growth
2011
2012
• The minimum wage policy will
contribute positively to income
growth
2013 f
7
6.0
6
5.2 5.4
5.0
5
4
5.9
4.0
4.7
3.7
• Unemployment rate to remain low
3.9
- Job creation to be sustained by
continued resilience in domestic
demand
3
2
1
0
Overall
Executives
Non-executives
f Forecast
Source: BNM Annual Survey
15
- Further supported by the gradual
recovery in the external sector
Continued expansion in all economic sectors…
2012p
2013f
% share of
GDP (2012) Annual change (%)
Services
54.6
6.4
5.5
Manufacturing
24.9
4.8
4.9
Mining
8.4
1.4
5.0
Agriculture
7.3
0.8
4.0
Construction
3.4
18.5
15.9
Real GDP
100
5.6
5.0 ~ 6.0
p
Preliminary
f
Forecast
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
16
• Services and manufacturing
sectors
- Key drivers of growth
- Supported by resilient domestic
demand and recovery in the
international trade activity
• Commodity sector
- Driven by higher production of
natural gas, crude oil and palm oil
• Construction sector
- Remain strong supported by major
infrastructure projects
…with growing significance of domestic-oriented sectors
Share of GDP (2012)
Market Orientation*
Domestic-oriented subsectors
• Retail
53%
Services
(54.6%)
• Hotels and Restaurants
• Communication
Domestic-oriented subsectors
19%
•
Consumer-related manufacturing
•
Construction-related manufacturing
Manufac
-turing
(24.9%)
Construction
(3.4%)
87%
Others
(15.4%)
Domestic-oriented
Export-oriented
2012p
*These estimates are based on the 2005 Input-Output Table
Source: Department of Statistics, Malaysia and Bank Negara Malaysia estimates
17
External trade: Higher export growth amid continued
expansion in imports
2012p
2013f
Gross exports
0.6
1.4
Manufactured
3.1
4.1
E&E
-1.8
-0.2
Non-E&E
8.4
8.2
Commodities
-6.7
-6.3
Agriculture
-15.3
-13.1
1.9
-0.5
5.9
5.7
Capital
20.5
18.5
Intermediate
Consumption
-3.4
11.6
1.9
9.6
94.8
70.1
Annual change (%)
Minerals
Gross Imports
Trade balance (RM bn)
• Gross exports to be supported by
growth in manufactured exports in line
with improvements in the global
economy
• Softer prices may weigh in on
commodity exports
• Gross imports driven by improvement in
intermediate imports and firm growth in
capital imports
p preliminary f forecast
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
18
Current account balance remains sustainable
Current account
RMb
220
% GNI
20
190
15
160
• The current account reflects
ongoing structural shifts in
domestic economy
RM60.0b
130
RM42.7b
100
10
6.6%
70
4.4%
• Lower trade surplus as imports
continue to outpace exports
5
40
10
0
-20
-50
-5
2008
Goods
2009
2010
Services
2011
Income
2012p
2013f
Current transfers
Current account balance, % of GNI (RHS)
p preliminary f forecast
Source: Department of Statistics, Malaysia and Bank Negara Malaysia
19
• Export diversification and
investment in growth areas will
improve Malaysia’s productive
capacity and trade performance,
ensuring sustainability of current
account balance
Foreign exchange market remained orderly
• Ringgit adjustments remained orderly, driven by two-way flow of funds
• Ringgit recorded a mixed performance against major and regional currencies
MYR performance against selected currencies in 2011 and 2012
JPY
15.2
9.2
IDR
3.9
USD
2.5
CNY
1.7
EUR
1.3
AUD
0.2
THB
-0.9
GBP
2012
2011
-2.4
SGD
-2.7
PHP
-4.2
KRW
-10
-5
0
5
% MYR depreciation
% MYR appreciation
20
10
International reserves remain at healthy levels
Net international reserves
(Jan’09 – Jan’13)
USD bn
150
• International reserves remain high,
mainly supported by current
account surplus
140
130
120
110
- Also reflected inflows of portfolio
and foreign direct investments
100
90
- Partially offset by higher outflows of
direct investment abroad as well as
outflows of other investments
80
70
60
Jan-13
Oct-12
Jul-12
Apr-12
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
Oct-10
Jul-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
50
Source: Bank Negara Malaysia
21
Headline inflation to range between 2 – 3% in 2013
Inflation forecast 2013
• The inflation projection reflects:
Annual
change (%)
6
- Higher global prices of selected food
commodities
5
- Adjustment to domestic administered
prices
4
3%
3
• Upside risk to inflation remains
2
1
- Any disruption to global supply of
commodities could lead to a broadbased increase in global food and
energy prices
2%
1.6%
0
2006 2007 2008 2009 2010 2011 2012 2013f
22
Monetary policy in 2013 will focus on addressing
potential risks to inflation and growth
Overnight Policy Rate (OPR)
4.0
%
• The OPR was unchanged in 2012
3.5
• Monetary policy in 2013 will focus on:
3.00%
3.0
– Managing upside risks to inflation
– Ensuring economic growth remains at
sustainable levels
2.5
2.0
Nov-12
Jul-12
Mar-12
Nov-11
Jul-11
Mar-11
Nov-10
Jul-10
Mar-10
Nov-09
Jul-09
Mar-09
Nov-08
Jul-08
1.5
23
Bank Negara Malaysia: Annual Financial Statements 2012
Financial position remained strong in 2012:
•
Total assets of BNM amounted to RM476 billion with
International Reserves of RM427.2 billion (USD139.7 billion)
•
Net profit of RM5.6 billion
•
Dividend of RM1.5 billion to the Government
24
Bank Negara Malaysia: Annual Financial Statements 2012
Financial position remained strong in 2012:
•
Total assets of BNM amounted to RM476 billion with
International Reserves of RM427.2 billion (USD139.7 billion)
•
Net profit of RM5.6 billion
•
Dividend of RM1.5 billion to the Government
25
FINANCIAL STABILITY AND PAYMENT
SYSTEMS REPORT 2012
Press conference
26
Financial stability remained intact
Banking Sector (%)
2011
Jan-2013
Capitalisation
Common equity tier 1 ratio
Total capital ratio
Capital buffer (RM bil)
13.7
15.7
79.7
12.1*
14.5*
73.5*
Profitability
Return on assets
Return on equity
1.6
17.4
1.6^
17.5^
Asset Quality
Net impaired loans ratio
Loan in arrears (1-<3 mths)
1.8
3.6
1.4
3.4
Liquidity Position
Liquidity buffer (<1 mth, % of deposits)
17.9
16.4
Insurance/Takaful Sector (%)
2011
2012
Capitalisation
Capital adequacy ratio
Capital buffer (RM bil)
222.5
20.1
222.3
22.5
Profitability
Profit (RM bil)
14.5
20.6
Source: Bank Negara Malaysia
•
Growth in credit and insurance
activities supportive of
economy
•
Orderly financial markets
despite higher capital flows
•
Confidence in financial
system preserved
•
Smooth implementation of
Basel III capital standards, in
line with global timeline
•
Banking sector resilient to
stress, reaffirmed by FSAP
assessment
*Based on Basel III capital requirements
27
^Reflects 2012 position
Risks to financial stability from household
indebtedness well-contained, unchanged from 2011
Household Sector (HH): Debt and Financial Asset
Ratio (%)
200
16
160
12
120
80
HH debt-toGDP ratio
HH financial
asset-to-GDP
ratio
HH debt (RHS)
8
HH financial
asset (RHS)
40
0
4
2009
•
Annual change (%)
2010
2011
2012
Growth in household borrowings moderated
(2012: 13%, 2011: 13.4%)
– Growth in banks lending moderated to 11.6%,
–
•
HH deposit
(RHS)
Banking System: Impairment Ratio for HH Loans
High quality of household financing of
banks with improving borrowing behaviour
– Repayments remained strong
– Decline in revolving balances for credit cards
– Lower delinquencies, gross impaired loan ratio
%
–
6
Overall
5
Residential
properties
Motor vehicles
4
3
•
–
–
Credit cards
1
2008
2009
2010
2011
2012
28
improved to 1.5%
Potential losses from household portfolio is small
vis-à-vis capital buffers
Sound lending practices of banks
– Continued underwriting discipline despite
Personal use
2
mainly in housing loans
But non-banks recorded higher lending growth of
23.4%
increased competition
More robust assessment of affordability
Risk management practices further enhanced
Pace of personal financing however continued to increase
•
Personal financing (PF) by non-banks grew
at a faster rate of 30%, while growth in PF
by banks was only 9%
–
•
PF as a share of household debt increased to
17% (2011: 16%)
Credit risk remains low
–
–
•
Low impairment: 1.8% (banks) and 1.6% (nonbanks)
PF by non-banks supported by automatic salary
deduction scheme for individuals with stable
employment
Continued engagement necessary to
ensure households do not become overly
indebted
–
29
Effective implementation of responsible lending
practices
Developments in property market being closely
monitored
Malaysian House Price Index (MHPI), Transaction and
Incremental Stock of Houses
•
Increase in house price driven largely by
mismatch between supply and demand for
housing
Annual change (%)
Units (‘000)
80
12
60
9
40
6
20
3
0
-
Macroeconomic, rather than financial, factors
more pronounced
-
Some moderation in speculative activity since
implementation of macroprudential and fiscal
measures
-
Supply measures including PR1MA would help
to address mismatch over medium term
Gap
0
1Q
3Q
2008
1Q
3Q
2009
MHPI (RHS)
1Q
3Q
2010
1Q
3Q
2011
Incremental stock
1Q
2012
Transacted units
Vacancy Rates of Office Space and Shopping Complex
•
Banks’ exposures mainly in end-financing,
and more vigilant lending standards
observed
•
Banks’ exposures to non-residential
properties remained low (<7%of total assets)
- Staggering of incoming supply of office space
%
24
20
16
and shopping complexes important to prevent
oversupply in short term
12
2008
2009
2010
Shopping Complex
2011
2012
Office Space
30
Contagion from external developments limited, while
liquidity risk was well-managed
•
Banking System: Composition of External Claims by
Region or Country
Counterparty exposures to euro area
remained low
USA
7.5%
Other
Europe
0.7%
– Further reduced for the most affected
European countries
Middle East Others
4.5%
3.9%
GIIPS
0.1%
•
•
•
Malaysian banks well-positioned to fulfil
financing needs including trade financing
should deleveraging occur
Stable funding and small net open foreign
currency positions
Low contagion risk from cross-border
operations of domestic banks
Asia
56.3%
EU-3
11.3%
Labuan
15.7%
Banking System: US Dollar Liquidity Mismatch and
Liquidity Buffer
RM bil
10
%
20
16
0
12
-10
•
Low counterparty risk from reinsurance
exposures with European (re)insurers
8
-20
4
2009
2010
2011
2012
2013
Liquidity buffer (<1 month) as % of total deposits [RHS]
USD liquidity mismatch (<1 month)
31
Robust regulatory and supervisory framework
continues to support financial stability
Raising standards
in governance and
risk management in
line
with international
Strengthened
legal
standards
and best
framework
practices
Strengthened
legal framework
Strengthened capital,
risk management and
prudential standards
32
Enhancement to
consumer and market
Continued
efforts to
conduct requirements
promote responsible
and fair practices by
financial institutions
Legislative reforms reinforce the Bank’s mandate to
safeguard financial stability
•
FSA
DFIA
IFSA
CBA
AMLATFA
CBA
Central Bank of Malaysia Act 2009
FSA
Financial Services Act 2013
IFSA
Islamic Financial Services Act 2013
MSBA Money Services Business Act 2011
MSBA
MDICA
DFIA
-
Expanded rule-making and supervisory powers to
address risks to financial stability in a more complex
financial landscape
-
Clear mandate and accountability, supported by
strengthened inter-agency coordination
-
Regulatory regime proportionate to risks
-
Stronger enforcement framework
-
Strengthened foundation for development of Islamic
finance
-
Strengthened business conduct and consumer
protection requirements
Development Financial
Institutions Act 2002
AMLATFA Anti-Money Laundering and
Anti-Terrorism Financing Act 2001
MDICA
Enactment of FSA and IFSA further strengthened
the legal framework for the financial sector
Malaysia Deposit Insurance
Corporation Act 2010
33
Favourable assessment of Malaysia’s regulatory and
supervisory framework by the IMF and World Bank
•
Malaysia received positive review under the Financial Sector Assessment
Program (FSAP) conducted in 2012
– Comprehensive legal framework supports the Bank’s mandates and objectives of
maintaining financial stability
– Robust and effective regulatory and supervisory regimes with high degree of
compliance with international standards in the following areas:
Ø
Basel Core Principles for Effective Banking Supervision (BCP)
Ø
IAIS Insurance Core Principles (ICP)
Ø
Principles for Financial Market Infrastructures (PFMI)
Ø
Core Principles for Effective Deposit Insurance Systems (IADI)
34
Financial sector continues to enhance growth potential
and regional and international interlinkages
•
Greater access to financing, especially for SMEs and new growth areas
– More flexible financing products
Outstanding Financing Value (RM
for micro-enterprises
by Banking System
bil)
– Higher financing for green technology
TOTAL
1,108.0
– Strong growth in financing by DFIs
Large Enterprise
242.0
to strategic sectors
SME
•
–
•
• Including financing from
DFIs
Extended regional footprint of
domestic banking groups
Household
Six domestic banking groups have
overseas operations in 21 countries
Annual
Growth
10.4%
16.6%
177.0
15.5%
189.0
14.3%
616.4
11.6%
Strengthening of the general insurance industry through further consolidation
–
–
Viability of smaller insurers improved
Enhanced capacity of industry to tap growth potential
35
Financial markets supportive of funding and risk
management requirements of corporations
•
Total outstanding sukuk and debt securities
surpassed RM1 trillion (2011: RM860.9 billion)
–
–
Debt securities market accounts
for 110% of GDP (2011: 101%)
Outstanding debt securities and sukuk
RM billion
1,200
1,000
800
Accounts for 61% of total outstanding
corporate financing (2011: 58%)
600
Public
Sector
400
200
•
•
Wider range of Shariah-compliant instruments
for liquidity management
-
2006 2007 2008 2009 2010 2011 2012
Deeper foreign exchange (FX) market
–
–
Average daily turnover in the foreign
exchange market
Average daily turnover of the FX market
increased by 12.5% to USD10.8 billion
(2011: USD9.6 billion)
USD billion
12
10
Foreign exchange rules further liberalised to
encourage greater innovation in FX product
offerings
8
6
4
2
0
2005 2006 2007 2008 2009 2010 2011 2012
36
Private
Sector
Continued growth and vibrancy of Islamic finance
Total Outstanding US Dollar-Denominated
Sukuk Globally 2012
Others
8%
Turkey
6%
UAE
33%
Indonesi
a
10%
• Robust growth in Islamic banking and takaful
assets, sukuk and foreign currency business
• Malaysia remains a major marketplace for global
sukuk issuance
–
Significant market for USD-denominated sukuk
(2012: 19%, 2011: 15%)
–
Supported by a strong regulatory and supervisory
framework , well-developed market infrastructure
and diverse players with global capabilities and
connectivity
Qatar
13%
Bahrain
5%
Saudi
Arabia
6%
Malaysia
19%
• Strengthened foundation for end-to-end Shariah
governance and compliance
–
Development of contract-based regulatory
framework to serve as benchmark
Bloomberg Professional Service Terminal (end Dec 2012)
37
Enhancing financial inclusion remained an important
priority
Agent banking framework
• Over 4,000 agents nationwide
• Increased access points by
100% to 3.4 per 10,000 adults
(2011: 1.7)
• 75% out of 837 sub-districts
have at least one financial
access point
High financial inclusion levels
by global standards
1
‘Getting Credit’ World Bank
Doing Business Report
since 2008
8
‘Ease of Access to Loans’
WEF Global
Competitiveness
Report 2012/2013
Mobile banking and payment platform, MyMobile
•
Coverage extended to more than 90% of mobile
phone subscribers
•
Registered users can view transaction history,
perform balance enquiries, funds transfer, mobile
prepaid reload, bills payment and credit card
repayment transactions.
38
Financial Inclusion Index
• Developed by the Bank to
monitor and measure
effectiveness of financial
inclusion initiatives
Electronic payments: enhancing efficiency and
national competitiveness
Quantum leap necessary to achieve
significant migration to e-payments
E-payment and Cheque: Turnover to GDP (Times)
18
16.0
16
14
E-payments
Blueprint targets
12
10
9.5
8
6
4
2
Cheques
2.6
2012
2020
2020 at
current pace
E-payments
per capita
56
200
112
Cheques
cleared (‘mil)
204
100
191
2.2
0
2007
2008
2009
2010
2011
2012
Further initiatives to transform payment system into one that is highly efficient to allow
Malaysia to achieve greater economic efficiency
Modernisation of Malaysian payments infrastructure
Faster execution of payments
– Interbank Giro will move
towards real-time – to reach
recipient within 2 hours by
2014
Standardisation of payment
reference information – 2014
will see improvements in
disclosure of payment details
to all users
39
National Bill Payment Scheme
– by end-2014, a new system
will be introduced, allowing
payments to be made to any
biller from any bank
35% of the initiatives under the Financial Sector
Blueprint implemented
3%
(7)
Completed Blueprint initiatives
Completed
25%
(52)
40%
(86)
32%
(69)
Implemented on
an Ongoing Basis
Commenced and
to be achieved
in/after 2013
Yet to commence
• Greater flexibility for non-resident
participation in onshore interest rate
derivatives market
• Allowed foreign currencies trading by
institutional funds and retail investors
• Roll-out of agent banking framework
• Recognised qualified foreign currency
instruments as liquid assets and
eligible for use as collateral
• Enactment of FSA and IFSA
Focus in 2013
• Accelerating migration to e-payments
• Building a deep and sustainable talent pool
• Reinforcing effective regulation and supervision
in the financial sector
40
Positive outlook for domestic financial stability
maintained in 2013
•
External environment expected to remain challenging
– Key risk to financial sector will continue to stem from the general deterioration in
external conditions
•
Financial sector is well placed to cope with adverse external developments
– Strong buffers of financial institutions
– Sound and continuous improvements in risk management practices
– Deep financial markets to absorb volatility
– Comprehensive institutional arrangements to respond to system-wide risks
•
Macrosurveillance and supervisory activities in 2013 will focus on:
– Sound underwriting practices of financial institutions
– Leverage position of lower income households
– Business expansion and lending activities of non-bank financial institutions
– Developments in the property market
41
Press Release
42
Liberalisation of Foreign Exchange Administration rules
to enhance competitiveness of the economy and further
develop domestic financial market
(1) Residents free to invest in onshore foreign currencydenominated assets offered by residents
Further develop the
domestic financial
market in line with
Financial Sector
Blueprint and
enhance business
efficiency
(2) Resident insurers and resident takaful operators free to
undertake investments abroad
(3) Residents allowed to issue securities, provided that the
issuance of debt securities is subject to prevailing rules
on borrowing from non-residents
(4) Non-residents free to issue foreign currency securities
in Malaysia
43
Liberalisation of Foreign Exchange Administration rules
to enhance competitiveness of the economy and further
develop domestic financial market
(1) Residents free to undertake anticipatory hedging involving
ringgit for financial account transactions with onshore banks
Enhance flexibility on
risk management
(2) Non-residents free to undertake anticipatory hedging involving
ringgit for current account transactions with onshore banks
(3) Non-residents free to hedge ringgit exposure arising from
investments acquired prior to 1 April 2005 with onshore banks
Enhance business
efficiency and reduce
cost of doing business
(1) Automatic designation of entities registered with the Financial
Services Authority of Labuan (Labuan FSA) as non-residents
44
Incentive structure to accelerate migration to e-payments
A new pricing strategy would be implemented effective May 2013
Initial phase
By 2020
Pricing reflective of
production cost
Steer desired payment behaviour
Cheque pricing to
increase
progressively
• Below-cost pricing of selected
e-payment methods
Cheques and e-payments
priced at cost
• New fee for cheques
2 May 2013
Online IBG* fee
capped at 10 sen
1 April 2014
Cheque
issuance fee of
50 sen
Cheque fee introduced only a year later:
• Allow individuals and businesses to
familiarise and make the necessary
preparations
• Further infrastructure improvement
* Performed via the Internet and mobile channels
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Efficiency gains in the longer term for the benefit
of the country
Support from both providers and users of payment services is important
Promote cost savings
Strategic tool to elevate the migration
to e-payments agenda to the next level
Achieve higher productivity
Reduce inefficiencies associated with
paper-based payments
Enhance national competitiveness
Key strategy to achieve greater economic efficiency
46
Thank you
47