Bank Negara Malaysia (BNM) has underscored the importance of structural reforms in sustaining Malaysia’s economic momentum, as the country navigates a more fragmented and technology-driven global landscape.
Speaking at the central bank’s Annual Report 2025 press conference, Governor Dato’ Sri Abdul Rasheed Ghaffour said, many of Malaysia’s current economic strengths stem from reforms implemented over the years, with recent measures further strengthening long-term growth foundations.
These include improvements in fiscal governance, investment policies, energy tariff realignments and targeted subsidy initiatives.
“Some recent measures, such as fiscal governance, investment policies, energy tariff realignments and BUDI95, address long-standing distortions and strengthen our long-term growth foundations,”
Looking ahead, Rasheed outlined four key reform priorities, starting with enhancing external resilience through continued investment in artificial intelligence (AI) and technology-ready infrastructure to better position Malaysia for future global challenges.
The governor also highlighted the need for labour market reforms to strengthen talent retention and raise incomes, alongside efforts to improve social protection systems through more targeted and integrated assistance aimed at enhancing upward mobility and overall well-being.
In addition, BNM is focusing on mobilising financing for new growth sectors, with the recent establishment of the Financing Sector Engagements (FSE) platform to facilitate more efficient capital flows and enable banks to play a stronger role in supporting innovation and economic expansion.
