Both SC and BNM have managed to maintain the country’s fiscal state, says finance minister
By SHAHEERA AZNAM SHAH / Pic By MUHD AMIN NAHARUL
The country’s monetary sector is stable amid fiscal challenges faced by the government due to the overconsumption of the previous administration.
Finance Minister Lim Guan Eng (picture) said the local banking industry is well-capitalised with a recorded low non-performing loan, while the capital market’s liquidity remains high.
“From the economic perspective, Malaysia has many challenges involving the fiscal issues. However, we are relieved that the monetary sector is currently stable as the banking sector is well-capitalised and the capital market remains solid.
“These are made possible through the efforts of the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM), which have managed to maintain the country’s fiscal state,” he said at the launch of the Institute of Corporate Directors Malaysia (ICDM) in Kuala Lumpur yesterday.
In his keynote address, Lim said there is a crucial need in encouraging corporate leaders across all sectors to keep pace with the fast-changing economic landscape.
“The boards are at the heart of good corporate governance and have to remain effective and objective, as they will need to do more than merely react to events as they unfold.
“Much of the success of Malaysian companies depend on the efforts of the boards and directors as they would not only need to embrace corporate governance, but drive practices as well,” he said.
He added that the establishment of ICDM is a critical need to the country’s corporate sector as it is expected to raise the professional standards of directors across the boards.
SC chairman Tan Sri Ranjit Ajit Singh said the institute is expected to represent a population of more than 7,000 directors in the country.
“We are confident that the ICDM will strengthen the country’s corporate governance and stand behind the improvement of director effectiveness and board leadership.
“The advocacy of good corporate governance is the focal point in the SC’s regulatory agenda which adopts the core principles of fairness, transparency and accountability,” he said.