The Malaysian economy continued to show strength and resilience in 2023. Despite the challenging external environment, GDP grew by 3.7%.
Amidst the slowdown in global economy and inflationary pressures domestically, Bank Negara Malaysia (BNM) said it had considered and managed the complex policy trade-offs and interdependencies between inflation, growth, and preserving confidence in the ringgit.
The Central Bank’s efforts to ensure financial intermediation activities support the economic reform agenda with particular focus on micro, small and medium enterprises (MSMEs), by improving the features of its special funds and scaling up social finance initiatives.
Efforts to advance value-based intermediation and promote solutions by the Islamic finance industry to meet the demand for green and sustainable finance.
BNM Annual Report 2023
The AR 2023 details BNM’s key initiatives in fulfilling its mandates to promote monetary and financial stability conducive to the sustainable growth of the Malaysian economy in 2023. It also provides an account of BNM’s operations and resources that enable it to function effectively and efficiently.
BNM continued its efforts to enhance climate resilience and manage climate-related risks within the financial sector. These efforts aimed to support financial institutions and the real sector transition to a greener economy, in line with national policies and strategies.
Governor Datuk Abdul Rasheed Ghaffour said: “Our prospects are good. We have reason to cautiously anticipate a better year ahead. There is also a favourable window of opportunity to implement crucial structural reforms. By taking decisive and collective actions, we can capitalise on Malaysia’s robust and resilient economic rebound post-COVID and lay the path for sustained growth and prosperity. While there may be challenges during this transition, these reforms are investments in our future towards prosperity of our rakyat and the nation.”
BNM, in a release, said they also continue to make progress in integrating climate-related risk into prudential regulation and supervision.
Combatting online financial fraud remained a key focus
BNM said it also worked closely with the financial industry and law enforcement agencies to improve fund tracing, disrupt fraudulent fund flows and raise awareness on the latest scam tactics and prevention tips. And launched the Financial Inclusion Framework 2023-2026 which outlines strategies to close the remaining gaps in access to quality and affordable financial services for all.
Key regulatory and supervisory programmes were put in place to further strengthen the ability of financial system to withstand shocks. BNM enhanced market conduct requirements for financial institutions to reinforce their responsibilities to safeguard consumer interests, especially when dealing with vulnerable consumers.
BNM is also increasing the financial sector’s preparedness to face crises through recovery and resolution planning, and simulation exercises.
The AR 2023 also sets out BNM’s Audited Financial Statements for the financial year ended 31 December 2023. As audited and certified by the Auditor General, the financial position of BNM remained stable in 2023.
Financials
BNM’s total assets amounted to RM631.26 billion as at 31 December 2023. A net profit after tax of RM7.16 billion was recorded for the financial year, of which RM4.31 billion has been transferred into BNM’s Risk Reserve.
BNM has declared a dividend of RM2.85 billion to the Government for the financial year 2023.
