Kuala lumpur: Malaysia is progressing at a reasonable pace in implementing strategic and structural reforms to achieve the nation’s aspiration of becoming a high-income and developed nation, said Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour. Beyond fiscal and investment reforms, Abdul Rasheed emphasized the need for Malaysia to advance in social protection and labour market reform to bolster the country’s long-term resilience.

According to BERNAMA News Agency, Abdul Rasheed stated that while the reforms are progressing well, a careful, step-by-step approach is crucial to accommodate Malaysia’s socioeconomic and sociopolitical realities. He cautioned that pushing reforms too rapidly could lead to policy setbacks and underscored the importance of avoiding policy reversals. The governor highlighted the time taken to reform fuel subsidies as an example of the necessity to thoroughly understand issues before implementing changes.

Reflecting on the pandemic’s impact, Abdul Rasheed observed that Malaysia’s social protection framework faced significant challenges, revealing gaps that require government attention. He stressed the importance of social protection in economic stabilization and ensuring adequate retirement benefits for the aging population. Abdul Rasheed expressed support for ongoing reforms and pledged continued involvement through platforms like the Malaysian Social Protection Council (MySPC).

The governor also identified opportunities for targeted assistance to enhance incomes for low-income earners, advocating for labour market reforms focused on education, upskilling, and reskilling to prepare for future demands. During the interview, Abdul Rasheed elaborated on the bank’s decision to reduce the overnight policy rate to 2.75 percent in July, describing it as a proactive measure to safeguard economic growth. The central bank maintained this rate in its final yearly review, deeming it supportive of the economy amid ongoing price stability.

Addressing concerns about a potential global economic slowdown, Abdul Rasheed noted that Malaysia’s diversified economy and robust banking sector provide resilience. He affirmed the central bank’s preparedness to implement necessary policy actions if required, highlighting the importance of building fiscal and monetary buffers during prosperous times. Despite acknowledging the gravity of economic challenges, Abdul Rasheed expressed confidence in the central bank’s ability to manage these issues effectively.