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Highlights Of Bank Negara Malaysia’s Annual Report 2015


KUALA LUMPUR, March 23 (Bernama) — Following are the highlights of the 2015 Bank Negara Malaysia Annual Report:

* Economy to expand by 4%  and 4.5% in 2016 driven mainly by domestic demand (2015: 5%)

* Bank Negara Malaysia declares dividend payout of RM3 billion to the government for the year 2015.

* The services and manufacturing sector expected to grow at a moderate rate of 4.4% and 4.1% respectively, in 2016 (2015 : 5.1%  and 4.9% , respectively)

* Mining and quarrying and construction to see an expansion of 3.5%  and 7.9%, respectively, in 2016 (2015 : 4.7% and 8.2%, respectively)

* Agriculture sector to contract marginally by -0.3% in 2016, largely due to lower palm oil yields following the hot and dry weather conditions brought about by the strong El-Nino weather phenomenon (2015: 1%)

* Gross exports are forecast to expand by 2.4% in 2016, sustained by a modest improvement in demand from advanced economies and continued growth in regional economies (2015: 1.9%)

* Gross import growth is projected to increase to 4.9% in 2016 (2015: 0.4%)

* Private consumption to growth is projected to moderate to 5.% in 2016 (2015: 6%)

* Private investment growth is projected to trend below its long-term average and grow by 5.5%  in 2016

* Headline inflation is projected to be higher at 2.5% to 3.5% in 2016 (2015: 2.1 pct)

* Public consumption growth is expected to moderate to 2% in 2016, reflecting mainly the lower spending on supplies and services given the government’s commitment to more prudent spending under the current uncertain environment

* Public investment is projected to turn around to register a positive growth of 1%.

* Consumer spending to be affected by an environment of higher prices and greater uncertainty but remain supported by continued income and employment growth

* Private investment to trend below long-term average in 2016, however, growth remains supported by on-going and new investments, particularly in the manufacturing sector

* While ringgit has strengthened in recent months, volatility is likely to persist going forward

* Total assets of Bank Negara Malaysia amounted to RM440.6 billion with international reserves of RM409.1 billion (US$95.3 billion)

* International reserves are adequate to provide a buffer against external shocks and facilitate international transactions

* Banking system surplus liquidity remained high at RM178.3 billion as at January 2016

* Malaysia’s external debt stood at RM833.7 billion, equivalent to US$192.2 billion or 72.% of GDP as at end of 2015.

* The current account surplus may be lower at RM19.1 billion or 1-2% of Gross National Income in 2016, on account of lower goods surplus and wider income deficits

* The unemployment rate may increase slightly but is expected to remain low at around 3.3% and 3.5% (2015: 5.7%)

* Malaysia’s population to increase to 31.4 million in 2016 (2015 : 31 million)