MONETARY POLICY TO REMAIN ACCOMMODATIVE NEXT YEAR

Date: 07-10-2011 Author: / ZER AMY AS VMD

Meanwhile, financing through the banking system and capital market is expected to increase to support economic activities, especially with several major long-term projects being implemented as the country transforms into a high-income economy by 2020. "Loan applications, approvals and disbursements posted growth of 23.1, 20.1 and 8.2 per cent, respectively, for the period between January and July 2011, from 18.8, 19.0 and 8.2 per cent, in the corresponding period last year. "Total loans outstanding expanded 12.9 per cent to RM949.9 billion, as at end-July, with the household sector accounting for slightly more than half of the total," the Treasury said in the report. With the implementation of the Capital Market Masterplan 2 and the Second Financial Sector Masterplan, the financial and capital markets are expected to see greater dynamism and innovation, especially in the internationalism of Islamic finance, venture capital and green and innovative financing, it added. The ministry said Malaysia currently had the most established syariah, regulatory and legal infrastructure, which offered a comprehensive coverage of Islamic financial services across banking, takaful, capital market and innovative products. "Malaysia remains the leader in sukuk issuance accounting for 62.7 per cent (US$112.3 billion) of the total global sukuk outstanding, as at the end of the first half of 2011," it said.