Singapore, Friday, 8 May 2009 - The on-going global recession has prompted governments to provide life support measures to prevent the global financial system from collapsing. Thus, co-operation among the central banks is key, said Malaysia's Central Bank Governor, Tan Sri Dato' Sri Dr. Zeti Akhtar Aziz today in a dialogue with the local business community organised by the Singapore Business Federation. Dr. Zeti was also in Singapore to attend the 6th Islamic Financial Services Board Summit.
Dr. Zeti, told 133 participants from the local business and financial sectors that the simultaneous announcement of new banking policies by Monetary Authority of Singapore and Bank Negara Malaysia was done with the purpose of minimizing the shock to the financial market as well as maximize impact on the business communities in Malaysia and Singapore. In addition to MAS, Bank Negara Malaysia has been actively engaging its central bank counterparts in China and Japan. She also encouraged more cooperation in business projects by both sides.
She assured those present that Malaysia's Central Bank is especially prudent and decisive in its financial and baking policies which are designed to facilitate and support Malaysia's economic growth. She also projected an optimistic outlook on Asia's economy, observing that "Asia holds greatest promise for recovery when conditions stabilize" even as the International Monetary Fund has downgraded its forecast for Asia three times this year.
As for the timing of the global recovery, she said this will hinge on two factors - effective resolution of the financial system and implementation of the stimulus given out by various governments. She emphasized that it was crucial for governments to implement pro-growth policies which should also take into consideration their likely impact on certain groups such as the households, SMEs and borrowers.
The SBF Business Dialogue on "Developments and Opportunities in Malaysia" was supported by Association of Banks in Singapore, Association of Small & Medium Enterprises, Monetary Authority of Singapore, Singapore Malay Chamber of Commerce and Industry and Singapore Indian Chamber of Commerce and Industry. It was sponsored by the Islamic Bank of Asia.
For more information on ASEAN Business Group events, please contact:
Alan Tan
Deputy Director, ASEAN and South Asia
Singapore Business Federation
Email: markets.asean@sbf.org.sg
Tel: 6827 6894
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